Daily BriefsEvent-Driven

Daily Brief Event-Driven: Bajaj Holdings (BJHI IN): Potential Index Inclusion Can Narrow Hold Co. Discount Further and more

In today’s briefing:

  • Bajaj Holdings (BJHI IN): Potential Index Inclusion Can Narrow Hold Co. Discount Further
  • OZ Minerals (OZL AU)’s A$28.25 Non-Binding Offer from BHP
  • Lifestyle International (1212 HK)’s Wide Spread Heading into the 21 November Vote
  • EQD | Alibaba (BABA US): Use Elevated Upside to Buy Call Ratios into Year-End
  • Shanghai/​​​​​​​​​​​​​​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (18 November 2022)
  • Shanghai/​​​​​​​​​​​​​​​​​​​​​Shenzhen Southbound Connect: Weekly Moves (18 November 2022)

Bajaj Holdings (BJHI IN): Potential Index Inclusion Can Narrow Hold Co. Discount Further

By Devi Subhakesan

  • Bajaj Holdings and Investment (BJHI IN) is expected to be included in the MSCI India Index at the November SAIR (Read more about the index inclusion here: https://skr.ma/xhbPx)
  • Bajaj Holdings, a holding and investment company, with significant stakes in Bajaj Auto Ltd and Bajaj Finserv has historically traded at a steep discount to the market value of investments. 
  • Its Holdco discount has narrowed to around 53%  and has the potential to narrow further with greater ownership and visibility post the likely index inclusion.

OZ Minerals (OZL AU)’s A$28.25 Non-Binding Offer from BHP

By Arun George

  • OZ Minerals Ltd (OZL AU) has received a revised non-binding indicative offer from BHP Group Ltd (BHP AU) at A$28.25 per share, a 13.0% premium to the previously rejected offer.
  • The Board has granted four weeks of due diligence and intends to recommend a binding offer at A$28.25 per share, in the absence of a superior proposal.
  • While the offer is below the rumoured Board’s target of a A$30 offer, it is still attractive. At the last close, the gross spread to the offer is 3.3%.

Lifestyle International (1212 HK)’s Wide Spread Heading into the 21 November Vote

By Arun George

  • Lifestyle International Holdings (1212 HK)’s vote on Mr Lau’s offer of HK$5.00 per share is at 10 am on Monday, 21 November. The wide spread of 6.6% reflects vote risk.
  • Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders rejection). No shareholder holds a blocking stake. 
  • Ongoing weak Hong Kong retail sales and peers’ slightly de-rating should lower the vote risk. Headcount test not applicable. While light, we continue to expect the offer to succeed.

EQD | Alibaba (BABA US): Use Elevated Upside to Buy Call Ratios into Year-End

By Simon Harris

  • Alibaba unveiled an upsized buyback plan this week and stock rallied despite a revenue miss
  • Sentiment in China is changing with tweaks to the Covid strategy and improving economic outlook
  • Call buying has elevated upside vols providing trading opportunites for both directional and volatility traders

Shanghai/​​​​​​​​​​​​​​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (18 November 2022)

By David Blennerhassett


Shanghai/​​​​​​​​​​​​​​​​​​​​​Shenzhen Southbound Connect: Weekly Moves (18 November 2022)

By David Blennerhassett


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