In today’s briefing:
- Block Deal Sale of About 278 Billion Won of Samsung Electronics by Samsung Life and Samsung F&M
- Paragon REIT (PGNREIT SP): Cuscaden Peak’s Attractive Privatisation Offer
- EQD | Commonwealth Bank (CBA AU) – Expected Move on Profit Announcement and Option Insights
- Industrivärden’s FY 2024: NAV Evolution, Discount, Target NAV, Replication
Block Deal Sale of About 278 Billion Won of Samsung Electronics by Samsung Life and Samsung F&M
- Samsung Life Insurance (032830 KS) and Samsung Fire & Marine Insurance (000810 KS) plan to sell about 278 billion won of Samsung Electronics (005930 KS) in block deal sales.
- A total of 5 million shares of Samsung Electronics shares that are expected to be sold in this block deal sale represents 0.1% of Samsung Electronics’ outstanding shares.
- If Samsung Life Insurance is able to sell 4.256 million shares of Samsung Electronics for 236.4 billion won, this would represent 1.3% of Samsung Life Insurance’s market cap.
Paragon REIT (PGNREIT SP): Cuscaden Peak’s Attractive Privatisation Offer
- Paragon REIT (PGNREIT SP) announced a privatisation proposal from Cuscaden Peak at S$1.0033 per unit (S$0.98 cash per unit and the 2H FY2024 distribution of S$0.0233 per unit).
- The offer price is attractive compared to historical trading ranges, peer multiples and precedent privatisations. It represents an all-time high.
- No disinterested shareholder holds a blocking stake. At the current price and for an end-of-May payment, the gross/annualised spread was 1.3%/4.6%.
EQD | Commonwealth Bank (CBA AU) – Expected Move on Profit Announcement and Option Insights
- Commonwealth Bank of Australia (CBA AU) is set to announce its 2025 Half Year Results on 12 February.
- Option prices suggest a 2.4% move in either direction, which is less than the historic move of 3.4% over the past six announcements.
- Traders can trade the event through 13 February 2025 listed options (weekly expiration).
Industrivärden’s FY 2024: NAV Evolution, Discount, Target NAV, Replication
- NAV of Industrivarden (INDUC SS) was c. SEK 160 bn (SEK 370/share) on December 31. NAV increased by 6% during FY 2024. 5-Y total return 78% (OMX30, 64%).
- Industrivärden C shares are trading at a 3.9% discount to NAV (vs. 7.4% average for last 5-years). It seems risky to bet on a further discount reduction, rather a reversal.
- My target NAV is SEK 171 bn. My TP for the C shares of Industrivärden, assuming a 5% discount to NAV, is SEK 376.5 (4.5% downside).
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