In today’s briefing:
- Joy City (207 HK): Minorities Should Take The Cash
- Tax Pivot in Play: Ruling Party Rethink Could Flip Market Narrative
- Current Active Merger, Acquisition, and Liquidation Opportunities: An Overview
- Exploring Active Portfolio Ideas: SPACs, Mergers, Asset Sales, Litigation, High-Growth Opportunities
Joy City (207 HK): Minorities Should Take The Cash
- Chinese property play Joy City (207 HK) has announced a Scheme buyback, with a price of $0.62/share (declared final), a 67.57% premium; but more like a 158% premium to undisturbed.
- Yes, this is a 70% discount to NAV. Yet Joy City has traded at P/B of 0.14x, on average, the past five years. Earnings have trended south in that timeframe.
- The IFA will likely cite liquidity and Joy City’s historical discount to NAV, and opine “reasonable”, and probably even “fair”. It is what it is for long-suffering shareholders.
Tax Pivot in Play: Ruling Party Rethink Could Flip Market Narrative
- Today’s selloff spooked the ruling party, prompting top lawmakers to signal tax tweak talks less than 24hrs after rollout — and they’re clearly watching the tape.
- Cap gains threshold likely gets bumped to ₩3–5bn. STT hike stays. Div tax top rate may drop from 35% to 25% amid internal party push.
- President Lee’s focused on pragmatism—cutting household debt and boosting corporate liquidity. Expect the tax narrative to pivot next week, sending local market sentiment in a new direction from Friday’s tape.
Current Active Merger, Acquisition, and Liquidation Opportunities: An Overview
- ProAssurance merger with TDC faces potential regulatory hurdles, creating a short opportunity with limited downside and significant upside.
- PMV Pharmaceuticals trades at a discount to net cash with imminent trial results and strategic review as catalysts.
- Next Science plans to distribute US$30m from asset sale, offering a 13% spread to expected distribution price.
Exploring Active Portfolio Ideas: SPACs, Mergers, Asset Sales, Litigation, High-Growth Opportunities
- Yorkville Acquisition, Lutnick’s SPACs, and Renatus Tactical Acquisition are SPACs with political connections, targeting crypto and blockchain opportunities.
- Mayne Pharma’s acquisition by Cosette faces legal challenges over a material adverse change, with a court hearing in September.
- Currency Exchange International’s growth driven by FX Payments, potential uplisting, and closure of unprofitable Canadian business.
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