In today’s briefing:
- AKM Industrial (1639 HK): SASAC and Xiamen Government-Backed Pre-Conditional Offer
- SK Telecom at a 6+% Dividend Yield: Entry Timing Analysis
- FTSE TWSE Taiwan 50 Index Rebalance Preview: Inclusion Fairly Certain; Close Among the Deletions
- STOXX Europe Indices: Quiddity Leaderboard for March 2022 Rebalance (And Jan 2022 BHP Replacement)
AKM Industrial (1639 HK): SASAC and Xiamen Government-Backed Pre-Conditional Offer
- Flexible printed board player Akm Industrial (1639 HK) has announced a pre-conditional Scheme from Alpha Luck and AKM Meadville at HK$1.82/share. The Offer price will NOT be increased.
- Alpha Luck is ultimately held by SASAC and AKM Meadville by the government of Haicang District, Xiamen. The two intend to hold 40:60 respectively in the unlisted vehicle.
- Various PRC regulatory approvals are required. This appears a transaction geared to complete. Timing is the key risk to the deal.
SK Telecom at a 6+% Dividend Yield: Entry Timing Analysis
- Until mid-January each year, local brokerages sell blue-chip stocks as they most aggressively engage in yearend dividend arb plays. They are repeatedly busy closing the arb positions until mid-January.
- Local pensions’ selling SKT can be interpreted as a preemptive portfolio cleaning to include LG Energy. Compared to other local institutions, pensions often become the first to do cleaning trading.
- As we are past mid-January, the position closing for the yearend arb play should have been over. So entering SKT now doesn’t seem like a bad idea.
FTSE TWSE Taiwan 50 Index Rebalance Preview: Inclusion Fairly Certain; Close Among the Deletions
- The next FTSE TWSE Taiwan 50 Index review will use data from 21 February. The changes will be announced on 4 March and implemented at the close on 18 March.
- China Development Financial (2883 TT) is a potential inclusion following a rally in the stock price and increase in shares outstanding following the acquisition of China Life Insurance (2823 TT).
- Any one of three stocks could be deleted to keep the number of index constituents at 50. There is 3% difference in market cap, so its very close.
STOXX Europe Indices: Quiddity Leaderboard for March 2022 Rebalance (And Jan 2022 BHP Replacement)
- The STOXX Europe 600 Index is a benchmark index with a fixed number of 600 components representing large, mid and small capitalization companies across 17 countries of the European region.
- The EURO STOXX Index is a subset of the STOXX Europe 600 Index and is also the parent index for the widely-tracked EURO STOXX 50 Index.
- Below is a look at the Potential Adds and Deletes for the STOXX Europe 600 Index and the EURO STOXX Index in the upcoming index review in March 2022.
Before it’s here, it’s on Smartkarma
