Daily Brief Financials: Shengjing Bank Co Ltd H, Kotak Mahindra Bank, Klarna Group and more

In today’s briefing:

Shengjing Bank (2066 HK): Offer “Bumped” To A ~84% Disc To NAV From 86.49%
Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (15 Sep)
Klarna (KLAR US): US-EU Index Exclusion Remains; Slim Prospects for Global Index Inclusion

Shengjing Bank (2066 HK): Offer “Bumped” To A ~84% Disc To NAV From 86.49%

Back on the 26th August, troubled rural commercial bank Shengjing Bank Co Ltd (2066 HK) announced a HK$1.32/Share Offer, a 15.79% premium to undisturbed, and a 86.49% discount to NAV.
Clearly not all is well with Shengjing Bank. And alternatives to the low-balled Offer are slim on the ground.
The Offeror has now bumped terms to HK$1.60 (best & final). That’s a 40.5% premium to undisturbed, but still a 83.96% discount to NAV.

Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
Highlights: Currently nine pair trade opportunities across four markets and four sectors persist.
Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

Klarna Group (KLAR US) is ineligible for US indices due to incorporation and headquarters in the UK, a foreign listing in the US and a majority of assets in Sweden.
Klarna Group (KLAR US) is ineligible for EU indices due to a sole listing in the US.
Klarna Group (KLAR US) can achieve inclusion in Global indices given an eligible nationality and following the lock-up expiry which increases float cap and public voting rights.

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