In today’s briefing:
- HK Connect SOUTHBOUND Flows (To 20 Dec 2024); Financials and Telecoms Still Tops
- Pentamaster International (1665 HK): Pentamaster Corp and AchiCapital’s Light Scheme Offer
- (Mostly) Asia-Pac M&A: Beenos, Insignia, Henlius, GAPack, Fuji Soft, Goldlion, Malaysia Airports
- Intel (INTC.US): Exploring a Tough Journey.
HK Connect SOUTHBOUND Flows (To 20 Dec 2024); Financials and Telecoms Still Tops
- SOUTHBOUND gross trading activity fell 20% week-on-week this week. Net buying was a little stronger.
- Alibaba Group Holding (9988 HK) was a net SOUTHBOUND sell this week for the first weekly sell since it became Southbound-eligible. Friday was the largest one-day sell in that period.
- Tech is still on the sell side and financials are still being bought very bigly.
Pentamaster International (1665 HK): Pentamaster Corp and AchiCapital’s Light Scheme Offer
- Pentamaster International (1665 HK) disclosed a Cayman scheme privatisation offer from Pentamaster Corp (PENT MK) and AchiCapital at HK$1.00 (HK$0.93 cash + HK$0.07 dividend), a 56.3% premium to the undisturbed price.
- The offer is final but unattractive compared to peer multiples. The shareholder with a blocking stake is a seller, but there is risk due to a high AGM participation rate.
- An arguably light offer in which the Holdco is privatising its OpCo by arbitraging the valuation discrepancies across two exchanges may not sit well with minorities.
(Mostly) Asia-Pac M&A: Beenos, Insignia, Henlius, GAPack, Fuji Soft, Goldlion, Malaysia Airports
- I tally 51 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Two new deals this week: Goldlion Holdings (533 HK)‘s Scheme, and Beenos Inc (3328 JP)‘s Tender Offer.
- Key updates/news took place on: Insignia Financial (IFL AU), Shanghai Henlius Biotech (2696 HK), GAPack (468 HK), Fuji Soft (9749 JP), Macromill (3978 JP) and Malaysia Airports Holdings (MAHB MK).
Intel (INTC.US): Exploring a Tough Journey.
- Regardless of the circumstances, Intel Corp (INTC US) must select a new CEO and hope that a new strategy will turn the situation around.
- A possible decision to spin off Altera could signal the possibility of Intel further breaking into several parts.
- For the near term, Intel must overcome financial and management challenges, and laying off 1/10 of its workforce is a short-term and necessary step.
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