In today’s briefing:
- Mischief Managed! Iwatani Corp (8088) Buys Out Murakami-San’s Cosmo Energy Stake
- Asian Dividend Gems: Fufeng
- Quiddity ASX Dec 23 Index Rebal: Beware of Pre-Positioning
Mischief Managed! Iwatani Corp (8088) Buys Out Murakami-San’s Cosmo Energy Stake
- The question of how Murakami-san would get out of his stake in Cosmo Energy Holdings (5021 JP) was always a biggie. He likes to sell stock in tender offer buybacks.
- Cosmo wasn’t going to do that for him. They promised dividends and a high payout ratio, but that left the question was how he was going to get out.
- A semi-obvious solution was to find a corporate partner to buy his stake and today, Iwatani Corp (8088 JP) announced that it had bought 19.86% of Murakami-san’s 20.01% holding.
Asian Dividend Gems: Fufeng
- Fufeng (546 HK)’s core businesses include food additives such as MSG, animal nutrition, high-end amino acids, and colloid such as xanthan gum.
- Xantham gum is increasingly becoming popular as millions of people around the world purchase gluten free foods.
- Fufeng’s dividend yield averaged 7.5% annually from 2018 to 2022. Its current dividend yield is about 11-12%. Fufeng is trading at P/E of 2.9x and EV/EBITDA of 1.8x in 2024.
Quiddity ASX Dec 23 Index Rebal: Beware of Pre-Positioning
- The December 2023 review results for ASX indices were announced after the close on Friday 1st December 2023.
- There will be three ADDs and thee DELs for the ASX 200 index. There are no changes for ASX 20, 50, and 100.
- In this insight, we take a look at our index flow expectations, trends in short interest, and the recent trading performance of the names involved in the ASX 200 changes.
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