In today’s briefing:
- Curator’s Cut: The Next Labubu, Crypto Equities and Tracking APAC Buybacks
- Merger Arb Mondays (09 June) – Mayne, Tam Jai, OneConnect, Toyota Industries, Makino, Fuji Corp
- Taiwan Top 50 ETF Rebalance: Elite Materials Added (But Bigger Sell Flows Elsewhere)
- [Japan M&A] Private Co Takeout of Fuji Corp (7605 JP) – A Done Deal
- Yuanta/P-Shares Taiwan Div+ ETF Rebalance: Huge Turnover & Flow Overlap
- A Visit to Daiso in Seoul – A Retail Giant Crushing the Competition
- Quiddity TDIV/50/100 Jun25 Results: 100% Hit Rate; Positioned for High-Impact Sector-Neutral Trades
- Ohayo Japan | Stocks up on Jobs Data
- Fuji Corp (7605 JP): Usami Koyu’s JPY2,830 Tender Offer Is Light but Done
- NIFTY200 Momentum30 Index Rebalance: HUGE Turnover and Trade as Financials Shine
Curator’s Cut: The Next Labubu, Crypto Equities and Tracking APAC Buybacks
- Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,200+ insights published over the past two weeks on Smartkarma
- In this cut, we look at an Asian toy manufacturer not named Pop Mart or Dream Int’l, the mashup between crypto and equity markets and the takeaways from tracking buybacks
- Want to dig deeper? Comment or message on the themes you think should be highlighted next
Merger Arb Mondays (09 June) – Mayne, Tam Jai, OneConnect, Toyota Industries, Makino, Fuji Corp
- We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: Mayne Pharma (MYX AU), Insignia Financial (IFL AU), Fuji Corp (7605 JP), ENN Energy (2688 HK), Smartpay Holdings (SPY NZ), Seven & I Holdings (3382 JP).
- Lowest spreads: Bright Smart Securities And (1428 HK), Toyota Industries (6201 JP), Dada Nexus (DADA US), Avjennings Ltd (AVJ AU), Nissin Corp (9066 JP), Torii Pharmaceutical (4551 JP).
Taiwan Top 50 ETF Rebalance: Elite Materials Added (But Bigger Sell Flows Elsewhere)
- Elite Material (2383 TT) will be added to the Yuanta/P-Shares Taiwan Top 50 ETF in June and will replace Unimicron Technology (3037 TT).
- ETF AUM has now crossed US$20bn and passive trackers will need to buy 1x ADV in Elite Material (2383 TT) and sell 1.2x ADV in Unimicron Technology (3037 TT).
- Importantly, Elite Material (2383 TT)‘s stock price rally results in a lower dividend yield and the stock will be deleted from another ETF where the passive selling is much larger.
[Japan M&A] Private Co Takeout of Fuji Corp (7605 JP) – A Done Deal
- The long-term major owner now chairman is getting out. The company was shopped. And bought. And this is the deal. ¥2,830 which is about 5.7x this year’s EBITDA.
- It could have been done a bit better, but irrevocables are 48.5% out of the 50.01% minimum and other directors get this past the minimum hurdle.
- Transparency is lacking but it is an all-time high and you can’t do much about it.
Yuanta/P-Shares Taiwan Div+ ETF Rebalance: Huge Turnover & Flow Overlap
- There are 5 adds and 5 deletes for the Yuanta/P-Shares Taiwan Dividend Plus ETF in June with implementation starting on 20 June and ending on 26 June.
- Estimated one-way turnover is 17.7% resulting in a round-trip trade of TWD 158bn (US$5.3bn). There are 10 stocks with over 5 days of ADV to trade.
- There are a few stocks that have same-way or opposing flows from other index trackers over the next couple of weeks and those stocks could outperform/underperform their peers.
A Visit to Daiso in Seoul – A Retail Giant Crushing the Competition
- I recently visited Daiso near Seoul Station. Daiso is one of the few off-line stores that has been crushing the competition in Korea in the past several years.
- Amid continued weak economy in Korea in the past several years, Daiso has thrived through its detailed execution of focus on low priced products with highest value to consumers.
- Able C&C (078520 KS) is a prime example a company capitalizing on the strong demand for cosmetic products at Daiso.
Quiddity TDIV/50/100 Jun25 Results: 100% Hit Rate; Positioned for High-Impact Sector-Neutral Trades
- The index changes for the T50/100 index family and the TDIV index were confirmed after market close on Friday 6th June 2025.
- There will be one ADD/DEL for T50, two ADDs/DELs for T100, and five ADDs/DELs for TDIV.
- All of these are exactly in line with our final expectations.
Ohayo Japan | Stocks up on Jobs Data
- US stocks rallied Friday after stronger-than-expected nonfarm payrolls data eased slowdown fears
- Fifty Japanese companies received activist proposals at June shareholder meetings, the highest number on record,
- Takeda Pharmaceutical faces opposition from Institutional Shareholder Services (ISS) against reappointing CEO
Fuji Corp (7605 JP): Usami Koyu’s JPY2,830 Tender Offer Is Light but Done
- Fuji Corp (7605 JP) has recommended a tender offer from Usami Koyu at JPY2,830, a 32.2% premium to the last close price.
- Unusually for a Board recommended offer, the lower limit will not achieve a 66.67% ownership ratio. Based on past EGM voting ratios, it is set at a 50.01% ownership ratio.
- While the offer represents an all-time high, it is below the midpoint of the IFA DCF valuation range. However, due to irrevocables, this is a done deal.
NIFTY200 Momentum30 Index Rebalance: HUGE Turnover and Trade as Financials Shine
- There are 20 changes a side for the Nifty200 Momentum30 Index that will be implemented at the close on 27 June. We had correctly forecast 39 of the 40 changes.
- Estimated one-way turnover is 68.4% resulting in a round-trip trade of INR 160bn (US$1.9bn). There are 22 stocks with over 1x ADV to trade.
- The Financials sector has 9 net inclusions to the index while the Information Technology and Consumer Discretionary sectors have 2 net deletions each.
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