In today’s briefing:
- StubWorld: Absent Borrow, GMO Internet (4784) Is An Avoid
- ZEEKR (ZK US): Geely Auto’s Binding Offer a Done Deal
- New World Resources (NWC AU): Expect CAML To Match Kinterra’s Terms
- Shibaura Electronics (6957 JP): Drawing Nearer to a Conclusion
- Adriatic Metals (ADT AU): 13th August Vote On Dundee Metals (DPM CN)’s Offer
- Netmarble Is Considering on Issuing EB Worth 250 Billion Won Backed by Its Stake in HYBE
- Liquid Universe of European Ordinary and Preferred Shares: July ’25 Report
- Div Tax Intel Drop: Street Pivoting to Forward Yield Plays (Consensus Data Excel Attached)
StubWorld: Absent Borrow, GMO Internet (4784) Is An Avoid
- GMO Internet (4784 JP) stays listed if/when GMO Internet Group (9449 JP) sells (a lot of) shares. Yet 4784 remains stubbornly – manipulated (?) – at nosebleed valuations.
- Preceding my comments on the GMO group – and Dah Sing Financial (440 HK) and Axiata Group (AXIATA MK) – are the current setup/unwind tables for Asia-Pacific Holdcos
- Hese relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
ZEEKR (ZK US): Geely Auto’s Binding Offer a Done Deal
- ZEEKR (ZK US) has entered into a definitive merger agreement with Geely Auto (175 HK) at US$26.87 per ADS or 12.3 newly issued Geely shares. The cash offer increased by 4.7%.
- The proposal is conditional on regulatory approvals (low risk, as Zeekr is a subsidiary of Geely), as well as approval from Zeekr’s shareholders and Geely’s independent shareholders.
- The Zeekr shareholder vote is a formality as Geely and undertakings exceed the two-thirds voting threshold. The Geely vote is low risk due to the low takeover premium.
New World Resources (NWC AU): Expect CAML To Match Kinterra’s Terms
- Writing reports on copper-play New World Resources (NWC AU) is tricky as they have a half-life of days, sometimes hours, as Kinterra and Central Asia Metals (CAML LN) compete head-to-head.
- Last week, Kinterra bumped its off-market Offer to A$0.063/share; which increases to A$0.064/share if it gets to 30%. CAML, currently at A$0.062/share, has matching rights up until the 17th July.
- The Takeovers Panel has now, not altogether unsurprisingly, opted not to declare unacceptable circumstances regarding Kinterra’s two applications.
Shibaura Electronics (6957 JP): Drawing Nearer to a Conclusion
- Yageo Corporation (2327 TT) has extended the close of its offer for Shibaura Electronics (6957 JP) from July 15 to August 1, the end of the waiting period for FEFTA approval.
- Yageo remains confident of securing FEFTA approval. Blocking an acquisition of a Type 1 (non-designated business sector) company by a Taiwanese company would set a bad precedent.
- There is a medium to high probability that Yageo secures FEFTA approval. Minebea Mitsumi (6479 JP) is likely to walk as it signalled a limited appetite to match Yageo’s offer.
Adriatic Metals (ADT AU): 13th August Vote On Dundee Metals (DPM CN)’s Offer
- Back on the 13th June, dual-listed silver play Adriatic Metals PLC (ADT AU) announced a cash/scrip Offer from Dundee Precious Metals (DPM CN),with an implied Offer price of A$5.56/share, a
- Dundee is offering 0.1590 new Dundee shares per ADT share, plus 93 pence in cash. Roughly a 35:65 cash/scrip split for the Aussie-listed line. And a 47.8% premium to undisturbed.
- As Adriatic is incorporated in the UK, the Offer is being done by a UK Scheme. The Scheme Doc is now out, with a shareholder vote on the 13th August.
Netmarble Is Considering on Issuing EB Worth 250 Billion Won Backed by Its Stake in HYBE
- According to the local media, Netmarble is considering on issuing exchangeable bonds (EB) worth about 250 billion won backed by its stake in HYBE.
- The potential EB issue is likely to be slightly positive on Netmarble and slightly negative on HYBE (mainly due to additional shares that could be sold in the market).
- We are Negative on BOTH Netmarble and HYBE. Their valuations are not attractive. Plus, HYBE could face a major negative issue of its founder Bang Si-hyuk who could be jailed.
Liquid Universe of European Ordinary and Preferred Shares: July ’25 Report
- Since mid-June, share price spreads have generally widened across the European liquid universe of ordinary and preferred shares, with 6 tightening and 13 widening.
- The premium of non-voting, less liquid Handelsbanken B shares vs. A has widened to 59.2%; the discount of Grifols B has widened (Brookfield’s approach remains tentative and non-committal).
- Recommended trades long preferred/short ords: Atlas Copco, BMW, Grifols, MFE Media-for-Europe. Recommended trades long ordinary / short preferred shares: Handelsbanken, Henkel.
Div Tax Intel Drop: Street Pivoting to Forward Yield Plays (Consensus Data Excel Attached)
- This is MoEF’s first gov-led tax reform—not lawmaker-initiated—and unlike April’s DP bill, it carries broader scope and priority fast-track status, boosting passage odds.
- Local chatter says MoEF is eyeing end-July to table its tax reform bill — that’s the base case making the rounds on the tape today.
- Gov may go full-scope: 9–25% div tax on all firms plus tax credits. Traders are now rotating into high forward-yield names ahead of MoEF’s late-July package.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
