In today’s briefing:
- TTB/Playtech: PUSU Deadline Looming
- Asia-Pac Weekly Risk Arb Wrap: Toshiba, Uniden, Giordano, ResApp, Infomedia, SPH REIT, Toyo
- Last Week in Event SPACE: Toshiba, Hutch Tel, SenseTime, Giordano, DTAC/True, Toyo Const., ResApp
- Kakao Pay: MSCI Will Likely to Continue to Treat Alipay as a Strategic Investor
- Index Rebalance & ETF Flow Recap: HSCI, SET50, S&P/ASX, MSCI, EMP PM, AMRT IJ, AMFI, SKT/KT
TTB/Playtech: PUSU Deadline Looming
- PUSU deadline for TTB (Gopher) has been extended until 15 July. Playtech states that this time will allow progress in additional negotiations. Talks are credible, but progress is at snail’s pace.
- Taking comparables’ median 9x EV/Fwd EBITDA, fair value for Playtech would be 772p. TTB should offer close to 800p to entice the Honk Kong based shareholders who derailed Aristocrat’s offer.
- I see the current valuation of Playtech as an attractive entry point, with the upside of a likely bid. Long PTEC LN.
Asia-Pac Weekly Risk Arb Wrap: Toshiba, Uniden, Giordano, ResApp, Infomedia, SPH REIT, Toyo
- There are 49 – mostly firm – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Two new deals this week: Giordano International (709 HK)‘s low-balled Offer; and Uniden Holdings (6815 JP)‘s MBO. Rumours on Toshiba Corp (6502 JP) also.
- Key updates took place for: Resapp Health (RAP AU), Infomedia Ltd (IFM AU), Link Net (LINK IJ), Toyo Construction (1890 JP), & SPH REIT (SPHREIT SP)
Last Week in Event SPACE: Toshiba, Hutch Tel, SenseTime, Giordano, DTAC/True, Toyo Const., ResApp
- There is a risk that the ¥7,000/share bid for Toshiba Corp (6502 JP) gets pulled/lowered in Round 2 because of due diligence, conditionality, market environment, etc.
- Hutchison Telecommunications Hong Kong Holdings (215 HK)‘s share price was up 33% month to date, on triple the average daily volume. Then promptly sheds 23% on an even larger volume.
- Even if one assumes that Softbank, Baba, and Cornerstones won’t sell, there is still 45% of SenseTime Group (20 HK) of shares out, worth US$11bn, unlocking next week.
Kakao Pay: MSCI Will Likely to Continue to Treat Alipay as a Strategic Investor
- In our view, MSCI will likely to continue to treat Alipay as a strategic investor in Kakao Pay (377300 KS).
- This will likely result in a failed inclusion of Kakao Pay in the next round of MSCI Korea Index rebalance.
- We also make a comparison to Kakao Pay-Alipay with another block sale involving Kakao Games Corp (293490 KS) and Netmarble Corporation (251270 KS).
Index Rebalance & ETF Flow Recap: HSCI, SET50, S&P/ASX, MSCI, EMP PM, AMRT IJ, AMFI, SKT/KT
- No changes for Asia Pacific at the MSCI Annual Market Classification Review. Lots of improvements needed for Korea to move from EM to DM in June 2025 at the earliest.
- Lots of changes expected for the HSCI and S&P/ASX family in September. Emperador Inc (EMP PM) and Sumber Alfaria Trijaya Tbk Pt (AMRT IJ) are potential FTSE inclusions in September.
- Shimao Services Holdings Limited (873 HK) started trading on Thursday and MSCI has announced the deletion of the stock from the MSCI China Index at the close on 27 June.
Before it’s here, it’s on Smartkarma
