In today’s briefing:
- Omron Partial Offer for JMDC (4483) – The Engagement Is On! This Is the Script, This Is the Timing
- Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, KOSDAQ150, Yuanta ETFs, MVA, MVW, SMH
- Last Week in Event SPACE: Nikkei 225 Flow, Aquila Acquisition, Axiata, Intage, Liontown/Albemarle
- ECM Weekly (10th Sep 2023) – ARM, VNG, Tuhu, Integral, Doosan, Orora, JFE, RR Kabel, Samhi Hotel
- After Selling the Property, There Appears to Be No Set Plan for How the Cash Will Be Used
Omron Partial Offer for JMDC (4483) – The Engagement Is On! This Is the Script, This Is the Timing
- In February 2022, Noritsu Koki (7744 JP) sold a chunk of JMDC (4483 JP) to Omron Corp (6645 JP) for nearly US$1bn. 7mos later, Omron supported a primary offering.
- Now Omron is going to 50+%, as Noritsu Koki is getting out. Other investors have to participate for this to succeed.
- The question of pro-ration may be a question of Elmer vs Mr Partridge. But Elmer has a point here.
Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, KOSDAQ150, Yuanta ETFs, MVA, MVW, SMH
- The changes at the Nikkei 225 September rebalance were announced on 4 September. The rebalance of the HSI, HSCEI, HSTECH and HSCI was implemented on the same day.
- The changes to the MVIS indices were announced on 8 September and will be implemented at the close on 15 September. The S&P/ASX family will also rebalance on 15 September.
- After a month and a half of big inflows to onshore China ETFs, there were small outflows from a lot of ETFs during the week.
Last Week in Event SPACE: Nikkei 225 Flow, Aquila Acquisition, Axiata, Intage, Liontown/Albemarle
- The Nikkei Index Team announced the changes to the Nikkei 225. That triggers flows of about ¥480bn a side, and some big, big changes.
- As interest rates and inflation remain high, investors will (should) continue to prefer lower-risk investments over higher-risk growth companies such as de-SPACed Aquila Acquisition Corporation (7836 HK).
- The Liontown Resources (LTR AU) / Albemarle Corp (ALB US) transaction looks done. However, Gina Rinehart may have other ideas.
ECM Weekly (10th Sep 2023) – ARM, VNG, Tuhu, Integral, Doosan, Orora, JFE, RR Kabel, Samhi Hotel
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- In the IPO space, things are getting busy again with multiple deals live across the region, whic his a refreshing change from the slow start in the first half.
- There were only a few placement this week, but what the lacked in volume they made up for in size.
After Selling the Property, There Appears to Be No Set Plan for How the Cash Will Be Used
- The need to obtain investment capital for future business development or the presence of stakeholders with a strong desire to improve asset efficiency may be the catalyst for selling property.
- Of course, cash should be used to return to shareholders, but the stock market expects more profit growth, so higher profit margins and ROE are required.
- The data from Ministry of Finance indicates that cash still hasn’t been spent on investments. Cash appears to be currently being used reluctantly for investments that will generate future profits.
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