In today’s briefing:
- Vishal Mega Mart (VMM IN) Placement: PE Selling Will Lead to Large Passive Buying
- ENN Energy (2688 HK): ENN Natural Gas’ Application Proof Is Out. Interesting For What Is Not Present
- Why Late August Could Be the Pivot Point for the Hanjin KAL Trade?
- HDB Financial IPO: Offer Details & Index Entry Timing
- New World Resources (NWC AU): Kinterra Capital Emerges With A 12% Stake
- StubWorld: Melco (200 HK) Needs To Fall
- PharmaResearch Spin-Off: A Textbook Case Study of Destroying Shareholder Value
- Weekly Update (WBD, STRZ, MODG)
- TSB: Divestment as a Defensive Lever in Sabadell’s BBVA Saga
- Neinor/Aedas Homes: Locked-In Majority, But Minorities May Still Get Paid
Vishal Mega Mart (VMM IN) Placement: PE Selling Will Lead to Large Passive Buying
- Reports indicate that Kedaara Capital Fund is looking to sell 22% of Vishal Mega Mart at a floor price of INR 110/share, a 11.9% discount to the last close.
- The placement will lead to a huge increase in the free float for the stock and Vishal Mega Mart could be added to a global index in August.
- Vishal Mega Mart is also an inclusion to another global index at the close on Friday and we could see more buying in the stock following the increase in float.
ENN Energy (2688 HK): ENN Natural Gas’ Application Proof Is Out. Interesting For What Is Not Present
- On the 26th March, ENN Energy (2688 HK) announced a cash/scrip Offer from ENN Natural Gas (600803 CH) (ENN-NG), its largest shareholder.
- The pushback is that the scrip portion pivots off the value of newly-listed ENN-NG H-shares. And the IFA’s theoretical assessment on such leaves a lot to be desired.
- A redacted version of ENN-NG’s application proof is now out. Curiously, the share ratio – new ENN-NG H Shares for each ENN shares – is noticeably absent
Why Late August Could Be the Pivot Point for the Hanjin KAL Trade?
- KDB just signaled they’ll offload their Hanjin KAL stake post-merger, likely in 2027—ending speculation they’d stay long-term to back Cho Won-tae.
- The 9% held by Daishin and Eugene PEs may hit the market in August, with LPs likely to cash out—Hoban grabbing it could flip the whole Hanjin KAL setup.
- If Hoban grabs the 9% PE stake in August, it could trigger a pre-2027 bidding war—possibly even a tender offer—to lock down float. This is the key near-term pivot.
HDB Financial IPO: Offer Details & Index Entry Timing
- HDB Financial Services Ltd (0117739D IN) is looking to list on the exchanges by selling up to INR125bn (US$1.46bn) of stock at a valuation of around INR 620bn (US$7.2bn).
- The stock will not get Fast Entry to either of the global indices. The earliest inclusion in a global index should take place in December.
- HDB Financial Services Ltd‘s peers have traded well over the last 6 months and that could spill over into demand for the stock. Grey market premium is pretty high.
New World Resources (NWC AU): Kinterra Capital Emerges With A 12% Stake
- In New World Resources (NWC AU)’s Possible Interloper. I noted NWC’s shares trading through Central Asia Metals (CAML LN)‘s A$0.05/share terms. An opportunistic investor (s) or a third party bidder?
- Toronto-Based PE outfit Kinterra Capital has now declared a 11.99% stake, paying upward of A$0.051/share.
- New World Resources (NWC AU)is currently in a trading halt due to “a potential material variation, including a proposed increase in Scheme Consideration, to a change of control transaction“.
StubWorld: Melco (200 HK) Needs To Fall
- Melco International Development (200 HK)‘s fully-paid rights shares commence trading today. Melco is down just ~14% since announcing a one-for-two rights issue; and 13% above the TERP.
- Preceding my comments on Melco are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
PharmaResearch Spin-Off: A Textbook Case Study of Destroying Shareholder Value
- Last week, PharmaResearch announced that it has approved a corporate spin-off, to separate the existing company into two distinct entities including PharmaResearch Holdings (surviving entity) and PharmaResearch (newly created entity).
- PharmaResearch spin-off is a textbook case study of destroying shareholder value. Minority shareholders should oppose this deal.
- The spin-off ratio is based on a pure net asset basis, not taking into consideration the future earnings and cash flow streams of the company’s most important product line Rejuran.
Weekly Update (WBD, STRZ, MODG)
Warner Bros. Discovery (WBD) announced on June 9, 2025, its plan to split into two independent, publicly traded companies by mid-2026.
Global Networks will be the entity that is spun-off. It will consist of legacy cable TV and digital networks, such as: CNN, TBS, TNT (including TNT Sports)…
CFO Gunnar Wiedenfels will become CEO of this spun‑off entity.
TSB: Divestment as a Defensive Lever in Sabadell’s BBVA Saga
- Sabadell is exploring a sale of TSB amid BBVA’s hostile bid, with offers in the €2.0–2.35B range.
- A sale at those levels would imply a small capital loss, not a gain, in my view.
- Strategic value remains: a divestment could disrupt BBVA’s plans, raise cash, or fund returns.
Neinor/Aedas Homes: Locked-In Majority, But Minorities May Still Get Paid
- Neinor’s offer is strategically sound but priced below NAV, raising legal and minority resistance risks.
- Castlelake’s 79% commitment secures majority control, but a squeeze-out or delisting still requires a higher bid.
- A revised offer near €26.50 would align interests and improve execution certainty at minimal cost to Neinor.
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