In today’s briefing:
- Canon (7751) – Second Buyback This Year – Last Happened in 2014
- Lifestyle Int’l (1212 HK): Thomas Yau Offer?
- NortonLifeLock/Avast: CMA Announces Provisional Clearance
- Link Admin: Dye & Durham Offers To Sell Aussie Ops To Appease ACCC
- 2022 JPX Nikkei 400 Rebal – 36 IN, 34 OUT, 4.9% One Way
- Banamex – Now There Are Three Potential Bidders, Still Including Banorte
Canon (7751) – Second Buyback This Year – Last Happened in 2014
- Canon Inc (7751 JP) reported Q2 earnings early last week. Shares dropped 4% the next day but closed down only 1%. Now they are above the prior close.
- They biked the dividend nicely (was ¥45/share last year, guided to ¥50 this year, but made ¥60/share instead.
- And now they have announced another ¥50bn buyback on top of the one announced in May. Fourth time in 14 years a second tranche is announced in one year.
Lifestyle Int’l (1212 HK): Thomas Yau Offer?
- Lifestyle International Holdings (1212 HK) was suspended this morning pursuant to Hong Kong’s Takeovers Code.
- Thomas Lau is the largest shareholder with 74.97%, as he has been since April 2019.
- A possible Offer ahead of a (potentially) improving retail outlook and the imminent opening of its Kai Tak project?
NortonLifeLock/Avast: CMA Announces Provisional Clearance
- British competition regulator surprises by provisionally approving the acquisition of Avast by NortonLifeLock; Avast’s share price reacted by increasing by 43%. Now the deal will complete.
- If the planned procedures are fulfilled, the purchase of Avast would become effective on 12 September. The Majority cash option should be preferred vs. the majority stock option.
- The spread on the majority cash option is 0.87% (tightened from 43.7% prior to the CMA announcement), with a 6.3% estimated annual return.
Link Admin: Dye & Durham Offers To Sell Aussie Ops To Appease ACCC
- The ACCC is seeking views on whether Dye & Durham’s proposed sale of GlobalX and the Australian operations of SAI Global, is sufficient to approve Link Administration (LNK AU)‘s takeover.
- Separately, the postponed Scheme meeting will be held on the 22 August. The Independent Expert continues to conclude that the Revised Scheme is fair and reasonable.
- The proposed date for the announcement of ACCC’s findings is the 8th September, one day prior to the Second Court Date.
2022 JPX Nikkei 400 Rebal – 36 IN, 34 OUT, 4.9% One Way
- The Ninth Annual JPX Nikkei 400 Index Review was announced on Friday 5 August. There are 36 Inclusions, 34 Deletions. They are mostly in line with Janaghan Jeyakumar, CFA‘s predictions.
- The “BIG SELL” is Oriental Land (4661 JP). The “BIG BUY” is Softbank Corp (9434 JP) as he predicted 11 months ago. There are some down-weights from capping.
- Oriental Land is also a potential Nikkei 225 Inclusion as discussed in Nikkei 225 Sep22 Annual Review; Data Final, Predictions Unch’d; Strategy Involved.
Banamex – Now There Are Three Potential Bidders, Still Including Banorte
- Santander’s USD6bn offer for Banamex was rejected by Citi as too low, according to press reports; the estimated valuation range for Banamex is now from USD7bn to USD8bn
- This leaves Inbursa, the Mifel-Grupo Mexico consortium and Banorte as contenders, with Banorte still a leading contender
- We continue to be cautious on Banorte, as its potential M&A success would mean big challenges in terms of capital requirements, along with portfolio de-risking and unpopular cost-cutting
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