In today’s briefing:
- Regarding the Six KRX Sector Names that Ran Ahead of Friday’s Official Review Drop
- Merger Arb Mondays (08 Sep) – Kangji, OneConnect, Ashimori, Pacific Ind, RPM, Santos, Zeekr
- Weekly Deals Digest (07 Sep) – Pacific Industrial, Ashimori, Shibaura, Kangji Medical, Chery, Hesai
- [Japan M&A] Pacific Industrial (7250) The MBO Is Extended After Effissimo Buys Above Terms
- BBVA-Sabadell: Deal Launches Underwater, Arbitrage Still Asymmetric
- TaskUs Privatization Faces Opposition Amid Potential for Improved Offer and Valuation Discrepancies
- Weekly Update (CON, HNZ, BRSL)
Regarding the Six KRX Sector Names that Ran Ahead of Friday’s Official Review Drop
- Six names stood out with simultaneous volume spikes and sharp pops last Friday; all Semis and Autos additions with big passive impact, while all others showed no tape action.
- Results likely leaked early, prompting front-running on Semis and Autos adds—high passive impact names—causing Friday’s sharp volume and price spikes.
- Early movers are mostly priced in; Thursday momentum plays still work, but Monday–Thursday morning requires caution. Focus on volume-driven flows before loading positions, long-short basket viable for other passive-impact names.
Merger Arb Mondays (08 Sep) – Kangji, OneConnect, Ashimori, Pacific Ind, RPM, Santos, Zeekr
- I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: Mayne Pharma (MYX AU), Smart Share Global (EM US), ENN Energy (2688 HK), Dongfeng Motor (489 HK), Joy City Property (207 HK), Santos Ltd (STO AU).
- Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), Humm Group (HUM AU), Ainsworth Game Technology (AGI AU), Ashimori Industry (3526 JP), Toyota Industries (6201 JP).
Weekly Deals Digest (07 Sep) – Pacific Industrial, Ashimori, Shibaura, Kangji Medical, Chery, Hesai
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: Chery Automobile (CH3456 CH) and Tata Capital Limited (TATACAP IN) IPOs. Hesai Group (HSAI US) H Share listing.
- Event-Driven developments: Pacific Industrial (7250 JP), Ashimori Industry (3526 JP), Shibaura Electronics (6957 JP), Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK), Johns Lyng (JLG AU), RPMGlobal.
[Japan M&A] Pacific Industrial (7250) The MBO Is Extended After Effissimo Buys Above Terms
- Activist-Ish-Y investor Effissimo reported Friday they had a 6.68% stake as of the end of August.
- Their average price is ¥2,253 which is 10% through the price the family Bidco was bidding (¥2,050).
- As this hasn’t traded below terms at any point since announcement, an extension was likely. This morning, we got one. We’ll get another one before it’s done, BUT…
BBVA-Sabadell: Deal Launches Underwater, Arbitrage Still Asymmetric
- BBVA’s bid goes live on 8 Sept, but a –8.71% spread and poor optics keep tactical long SAB / short BBVA trades attractive.
- Sabadell continues to boost standalone appeal via dividends, TSB sale, and strategic capital returns, reducing shareholder incentive to tender at current terms.
- Legal overhang and merger restrictions extend into 2028, capping synergies and reinforcing the asymmetry in event-driven positioning ahead of potential bid adjustments.
TaskUs Privatization Faces Opposition Amid Potential for Improved Offer and Valuation Discrepancies
- TaskUs is being privatized by Blackstone and founders at $16.50/share, opposed by activists and ISS, expecting improved offer.
- TaskUs projects $75-$120 million free cash flow in 2025, potentially funding the buyout with minimal additional investment.
- TaskUs specializes in premium BPO services, showing strong growth in Trust & Safety and AI Services segments, less vulnerable to automation.
Weekly Update (CON, HNZ, BRSL)
- On September 2, 2025, Kraft Heinz (KHC) announced that it will be breaking up into two companies.
- The news comes a decade after the infamous merger of two of the biggest names in packaged foods that was orchestrated by Warren Buffett and Brazilian private equity firm 3G Capital Partners.
- North American Grocery Co would encompass many of the traditional Kraft products.
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