In today’s briefing:
- SPH REIT Float Drops – Index Impacts To Come (Today and Beyond)
- Merdeka Copper (MDKA IJ): Listing Board Change and FTSE Inclusion
- MSCI August 2022 Index Rebalance Preview: The Last QIR?
- Jasmine Acquisition To Expand Advanced’s Broadband Footprint
- Block Deal Sale of SK IE Technology by Premier Partners: Trying to Dump Shares on a Dead Cat Bounce
- MCT SP as MPACT Creeping Ever Higher Vs Peers
- Selected European Holdcos and DLCs: June ‘22 Report
SPH REIT Float Drops – Index Impacts To Come (Today and Beyond)
- The SPH REIT Mandatory Chain Offer resulted in Cuscaden owning 61.68% of SPH REIT (SPHREIT SP)
- As per SPH REIT Offer Goes Unconditional – The Option Now and Index Impacts To Come, that meant substantial index downweights to come.
- One of those is today. Watch for a chunk of selling at the close.
Merdeka Copper (MDKA IJ): Listing Board Change and FTSE Inclusion
- Merdeka Copper Gold Tbk PT (MDKA IJ) moved from the Development Board to the Main Board of the IDX on 31 May. That makes the stock eligible for FTSE inclusion.
- Meeting the full market cap, free float market cap and liquidity requirements, Merdeka Copper Gold Tbk PT (MDKA IJ) could be added to the FTSE All-World Index in March 2023.
- Passive FTSE trackers are estimated to buy 615.4m shares (US$167m; 5.8 days ADV) of Merdeka Copper Gold Tbk (MDKA IJ). That is 4% of the real float of the stock.
MSCI August 2022 Index Rebalance Preview: The Last QIR?
- We see 8 potential inclusions and 1 potential deletion for the MSCI Standard index at the August QIR. Announcement on 12 August (Asia time) and implementation on 31 August.
- Largest passive inflows expected on Gcl Poly Energy (3800 HK), Kasikornbank (KBANK TB), Tianqi Lithium (002466 CH) and Qinghai Salt Lake Industry (000792 CH).
- There are a few of the China/ Hong Kong listed stocks that could have same way flows from the FTSE trackers a couple of weeks later at the September SAIR.
Jasmine Acquisition To Expand Advanced’s Broadband Footprint
- Advanced Info Service (ADVANC TB) intends to acquire Jasmine International PCL (JAS TB) broadband ops (TTTBB) plus a 19% stake in Jasmine Broadband Internet Infrastructure Fund (JASIF TB) from JAS.
- AIS will pay Bt 19.5bn for TTTBB and Bt 12.9bn for 19% of JASIF, or Bt 32.4bn (US$908mn) all in. The acquisition will be funded by debt.
- The transactions, which are subject to NBTC approval, follow the ongoing regulatory process for True (TRUE TB) / Total Access Communication (DTAC TB)‘s merger. True is Thailand’s largest broadband player.
Block Deal Sale of SK IE Technology by Premier Partners: Trying to Dump Shares on a Dead Cat Bounce
- Premier Partners private equity firm plans to sell a total of 3.46 million shares (4.84% stake) of SK IE Technology (361610 KS) in a block deal sale.
- Premier Partners is trying to dump its shares right after a dead cat bounce in SK IET’s share price rise on 5 July.
- Despite the large block deal discount range, we remain negative on the SK IE Technology shares and we would avoid this block deal. Valuations remain expensive.
MCT SP as MPACT Creeping Ever Higher Vs Peers
- Mapletree Commercial Trust (MCT SP) has crept higher vs the Peer Baskets, especially in the last 4-6 weeks as Other S-REITs have weakened.
- This sets the stage for a potentially large flowback into S-REITs as a class coming in a few weeks.
- It may be time to reconsider positioning, looking at where MPACT has been and will be.
Selected European Holdcos and DLCs: June ‘22 Report
- Discounts to NAV of covered holdcos have either remained within same levels or widened during June: Alba, 40.3%; GBL, 34.7%; Heineken Holdings to 20.9%; Industrivärden C, 13.8%; Investor B, 15.6%;
- Porsche Automobile Holding to 35.3%. Rio Tinto DLC widened to 23.4%. Spreads tend to widen in bear markets but short term recoveries provide opportunities to bet on tightening discounts.
- Recommended trades: Industrivärden C vs. listed assets, Rio Tinto (DLC).
Before it’s here, it’s on Smartkarma
