In today’s briefing:
- Yichang HEC (1558 HK): Speculative Scrip Offer? No Thanks – Vote No
- BBVA/Sabadell Update: TSB Sale Shifts Dynamics, Adds Dividend Optionality
- Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (May and June 2025)
- Spectris Update: KKR’s Recommended Counter-Offer Displaces Advent
- Event Driven: Torrent Acquires JB Chemicals ~ The Second-Largest Pharma Deal in Indian History
Yichang HEC (1558 HK): Speculative Scrip Offer? No Thanks – Vote No
- A little over a year ago, I wrote about Yichang HEC Changjiang Pharma (1558 HK)‘s overly complicated scrip Offer in Yichang HEC (1558 HK): Absorption Via Speculative Scrip. Avoid.
- In summary, Yichang HEC shareholders were being offered 0.263614 “Offeror H shares”. These consideration shares are unlisted. The Offeror being Yichang HEC’s controlling shareholder (51.41%).
- The Composite Doc and the Offeror’s Listing by Way Of Introduction Doc are out. The independent H-shareholder vote is the 21st July. Shareholders should vote this down.
BBVA/Sabadell Update: TSB Sale Shifts Dynamics, Adds Dividend Optionality
- Sabadell’s TSB sale unlocks €3.4B in value and supports a €0.50/share special dividend, reducing appeal of BBVA’s current hostile bid.
- BBVA maintains its offer despite regulatory constraints and limited synergy visibility for 3–5 years.
- Options activity and share price suggest market expects either a bid bump or re-rating, with dividend yield softening downside.
Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (May and June 2025)
- In this insight, we discuss the alpha generation through companies that announced share buybacks in the Korean stock market in May and June 2025.
- There were 24 companies in the Korean stock market that announced share buybacks in the past two months. On average, the share buyback announcements represented 1.7% of outstanding shares.
- There were four companies with more than 100 billion won in market cap that announced share buybacks in May and June with at least 3% of outstanding shares.
Spectris Update: KKR’s Recommended Counter-Offer Displaces Advent
- KKR’s £40/share offer is now board-recommended, displacing Advent’s prior bid; Spectris shares trade near offer price with minimal spread.
- With full board support and limited regulatory risk, the market implies >99% deal certainty.
- Advent must act swiftly or concede defeat; further bidding appears unlikely but not impossible.
Event Driven: Torrent Acquires JB Chemicals ~ The Second-Largest Pharma Deal in Indian History
- Torrent Pharmaceuticals (TRP IN) is acquiring a controlling stake in J.B. Chemicals & Pharmaceuticals (JBCP IN) for INR 25,689 crore, marking the second-largest pharma deal in India’s history.
- The acquisition strengthens Torrent’s market share in India, expands its therapeutic presence, and opens entry into the growing CDMO sector, diversifying its business model.
- The merger is expected to drive revenue growth, improve margins, and provide operational synergies, with long-term gains in both domestic and international markets.
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