In today’s briefing:
- Korea’s Mandatory Treasury Share Cancellation Situation Creates New Passive Flow Dynamics
- Yext Receives Privatization Offer: Board Evaluates Strategic Alternatives Amid Potential Bidding War
- Infomedia (IFM AU): Scheme Vote on 18 November
- Infomedia (IFM AU): 18th November Vote On TPG’s Offer
- Capgemini–WNS: Locking in the Final Basis Points
- Tata Consultancy Services (TCS IN) Q2 FY2026 Results: Options Signal Larger-Than-Usual Move
- Corteva (NYSE: CTVA) To Spin-Off Its Seeds Business; Targets Sharper Focus and Valuation Upside
- Yext’s Management-Led Privatization Proposal: Evaluating Strategic Alternatives Amidst AI Pivot and Shareholder Dynamics
Korea’s Mandatory Treasury Share Cancellation Situation Creates New Passive Flow Dynamics
- KRX may preemptively adjust KOSPI 200 screening, switching from full market cap to market cap excluding treasury shares for index inclusion.
- With treasury-share cancellation likely this quarter, KRX may act before June ’26. For December KOSPI 200, we should run both full-cap and ex-treasury screens; flows could behave unusually.
- Focusing on Hanssem (009240 KS) and Taekwang (003240 KS); borderline, high treasury shares, potential KOSPI 200 exclusion, making them key flow-sensitive setups for December reshuffle.
Yext Receives Privatization Offer: Board Evaluates Strategic Alternatives Amid Potential Bidding War
- The company received a non-binding privatization offer from the CEO at a 10% premium to pre-announcement levels.
- A committee of independent directors is evaluating the offer and exploring other strategic alternatives, indicating the company is open to bids.
- There is a high single-digit spread to the offer price, with limited downside due to strong recent earnings.
Infomedia (IFM AU): Scheme Vote on 18 November
- The Infomedia Ltd (IFM AU) IE considers TPG’s A$1.70 offer fair and reasonable, as it falls within its A$1.57 to A$1.79 valuation range.
- The scheme is conditional on FIRB approval, German FDI approval, and shareholder approval. Shareholders should be supportive, as the offer is reasonable and Infomedia’s history of non-binding bids.
- The scheme vote is low-risk. At the last close and for a 3 December payment, the gross/annualised spread is 1.2%/7.4%.
Infomedia (IFM AU): 18th November Vote On TPG’s Offer
- Back on the 11th July,Infomedia Ltd (IFM AU), a automotive software firm, entered into a Scheme Implementation Deed with PE-outfit TPG.
- TPG offered A$1.72/share, a 30% premium to last close. The Offer had the unanimous backing of Infomedia’s boards. All in, terms looked clean.
- The Scheme Booklet is now out, with a Scheme Meeting on the 18th November, and expected implementation on the 3rd December. The IE (Grant Thornton) says “fair & reasonable“.
Capgemini–WNS: Locking in the Final Basis Points
- Capgemini’s $76.50 all-cash acquisition of WNS has cleared all approvals; only court sanction remains.
- Scheme court hearing set for 9 October; settlement expected around 16 October 2025.
- With a 0.25% gross spread, this is now a low-risk, near-cash arbitrage position.
Tata Consultancy Services (TCS IN) Q2 FY2026 Results: Options Signal Larger-Than-Usual Move
- Context:Tata Consultancy Services (TCS IN) will report Second Quarter FY 2026 Results on Thursday, 9 October 2025, after market close.
- Highlight: Typically a low-volatility stock, TCS has seen notable post-earnings swings in the past. Option markets now anticipate a move larger than its historic average.
- Why it matters: TCS is a top constituent of the Nifty 50 and Sensex. TCS’s commentary on the new H-1B visa fee could influence sentiment across India’s IT services sector.
Corteva (NYSE: CTVA) To Spin-Off Its Seeds Business; Targets Sharper Focus and Valuation Upside
- Corteva plans to spin-off its Seeds business in to a separate publicly liated company. Parent will retain the Crop Protection business
- The separation enables sharper focus and capital allocation between two fundamentally different businesses.
- The seed / trait business is viewed as the higher growth, higher innovation leg (gene editing, trait licensing, intellectual property). These attributes tend to attract premium multiples.
Yext’s Management-Led Privatization Proposal: Evaluating Strategic Alternatives Amidst AI Pivot and Shareholder Dynamics
- Yext received a $9/share non-binding privatization offer from its CEO, with a 7% spread to the offer price.
- The CEO’s funding sources are undisclosed, and he owns 2.5% of Yext, needing to raise nearly $1bn.
- Major shareholders include Lead Edge Capital (10.2%) and Lynrock Lake (8.5%), with cost bases around $6-$7/share.
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