In today’s briefing:
- Topix FFW Transition – Insurance Sector a Big Net Sell
- BBVA/Garanti: Offer Period, Shares at a 9% Premium to Offer Price
- Betting on the Future of Esports
Topix FFW Transition – Insurance Sector a Big Net Sell
- The TOPIX Insurance Sector sees the worst net flows as a percentage of index weight among the 33 sectors in the April-June FFW Transition.
- On a net basis, rebalance flows favour Japan Post Insurance (7181 JP) vs T&D Holdings (8795 JP) (finishing a buyback) and Dai Ichi Life Insurance (8750 JP) (just finished).
- JPI has underperformed both over the last three years despite growing BVPS by more. And earnings should be a blowout.
BBVA/Garanti: Offer Period, Shares at a 9% Premium to Offer Price
- The deal for 50.15% of Garanti has received the relevant authorizations and approval from the market regulator. The offer memorandum has been published. The offer period started on 4 April.
- BBVA should pay €1,605 million (as of 11 April), €644 million less than upon announcement due to Turkish lira depreciation. Some fund managers have voiced their intention of not tendering.
- The shares trade roughly in line with peers and are likely to continue their bull run in the short term. It is increasingly difficult the offer succeeds without a sweetening.
Betting on the Future of Esports
- In October last year, esports-focused FaZe Clan announced a SPAC deal with B Riley Principal, making it the first billion-dollar deal in its category.
- Critics have argued that the company’s deal is premature, often comparing it to a meme stock
- Despite the criticism, there’s more to Faze Clan’s SPAC deal than first meets the eye
Before it’s here, it’s on Smartkarma
