In today’s briefing:
- Merger Arb Mondays (20 Mar) – Toshiba, AAG Energy, Tyro, Newcrest, InvoCare, Pushpay, Golden Energy
- Weekly Deals Digest (19 Mar) – Japan Post, Toshiba, AAG, SBI Sumishin, Trial Holdings, Harita Nickel
- Recruit: Share Price Continues to Fall as Labour Markets Facing Challenges
- Trial and Error Continues for Investment Managers to Enhance Disclosure for Resuming ESG Fund Sales
Merger Arb Mondays (20 Mar) – Toshiba, AAG Energy, Tyro, Newcrest, InvoCare, Pushpay, Golden Energy
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads – 21Vianet Group (VNET US), 111 Inc (YI US), Alliance Aviation Services (AQZ AU), Genesis Minerals (GMD AU), Newcrest Mining (NCM AU), Aag Energy Holdings (2686 HK).
- Lowest spreads – Nitro Software Ltd (NTO AU),Norwest Energy NL (NWE AU), GK Goh Holdings (GKG SP), Boustead Projects (BOCJ SP), Nippon Steel Trading Corporation (9810 JP), Nissin Electric.
Weekly Deals Digest (19 Mar) – Japan Post, Toshiba, AAG, SBI Sumishin, Trial Holdings, Harita Nickel
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments – SBI Sumishin Net Bank (7163 JP), Trial Holdings (5882 JP) and PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ) IPOs; Japan Post Bank (7182 JP) offering.
- Event-Driven developments – Toshiba Corp (6502 JP), Toyo Construction (1890 JP), Genesis Minerals (GMD AU), Pushpay Holdings (PPH NZ), Aag Energy Holdings (2686 HK), Halcyon Agri (HACL SP).
Recruit: Share Price Continues to Fall as Labour Markets Facing Challenges
- Recruit Holdings (6098 JP) share price is down 18% YTD and the valuation multiples have more than halved since their peak in November 2021.
- The company’s recent 3QFY03/2022 earnings pointed towards declining profitability with mismatch in the labour markets easing off.
- The job openings in the US have further declined in January suggesting that Recruit’s share price has more room to fall as consensus has further downgraded estimates.
Trial and Error Continues for Investment Managers to Enhance Disclosure for Resuming ESG Fund Sales
- While investment managers spend money on expanding their ESG investment systems and disclosures in preparation for the FSA’s guidelines, they expect the business of ESG funds to continue to grow.
- It’s desirable for investment managers to disclose qualitative and quantitative information, recognizing the need to incorporate ESG factors into their investment decisions and to show that results are being achieved.
- Some investment managers are redefining ESG funds to incorporate ESG factors beyond ESG integration, and this trial-and-error process will continue as investment managers position ESG investment trusts as key products.
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