In today’s briefing:
- Woodside / BHP Petroleum Merger – Thinking About Flows (Still a Flowback Sell)
- SET50 Index Rebalance Preview: +JMT, JMART, BJC / -RATCH, STGT, IRPC
- PAG Pre-IPO – The Negatives – Planned Reorg Doesn’t Sound Great
- FTSE China A50 Index Rebalance Preview: PetroChina, Gree Out Due to Ground Rule Change
- Qantas Enters Scheme With Alliance Aviation
Woodside / BHP Petroleum Merger – Thinking About Flows (Still a Flowback Sell)
- The Merger of Woodside Petroleum (WPL AU) with BHP Group Ltd (BHP AU) subsidiary BHP Petroleum sees a vote 19 May and likely Effective Date by 1 June.
- BHP would go ex-dividend on 25 May, with the in-specie dividend payment WPL shares delivered on 1 June and tradable one day later.
- As discussed in Woodside / BHP Petroleum Merger On Tap; Index Impact Minimal but Flowback May Not Be, major index impact is minimal, but monsters lurk beneath the tranquil surface.
SET50 Index Rebalance Preview: +JMT, JMART, BJC / -RATCH, STGT, IRPC
- The market cap and liquidity review period for the June rebalance of the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) ends in less than four weeks.
- Potential inclusions are JMT Network Services (JMT), Jaymart PCL (JMART) and Berli Jucker (BJC) while the potential deletions are Ratch Group (RATCH), Sri Trang Gloves (STGT) and IRPC PCL (IRPC).
- There are a couple of stocks that are close on liquidity and trading volumes over the next few weeks will determine if they are added, they stay or go.
PAG Pre-IPO – The Negatives – Planned Reorg Doesn’t Sound Great
- PAG aims to raise around US$2bn via its Hong Kong IPO.
- PAG is an alternative investment firm focused on Asia-Pacific (APAC), it had approximately US$50bn in assets under management (AUM), as of Dec 21.
- In this note, we will talk about the not so positive aspects of the deal.
FTSE China A50 Index Rebalance Preview: PetroChina, Gree Out Due to Ground Rule Change
- A Ground Rule change to the index universe will result in the deletion of PetroChina (601857 CH) and Gree Electric Appliances (000651 CH) from the FTSE China A50 Index (XIN9I).
- Potential inclusions at the June rebalance are Poly Real Estate Group Co., Ltd (600048 CH) and Anhui Conch Cement (600585 CH). China Citic Bank Corp (601998 CH) is close.
- Assuming three changes are implemented, one-way turnover at the rebalance is estimated at 3.05% and will result in a one-way trade of CNY 1,484m.
Qantas Enters Scheme With Alliance Aviation
- Qantas Airways (QAN AU) has entered into a Scheme to buy smaller airline Alliance Aviation Services (AQZ AU).
- Alliance shareholders will receive $4.75 in Qantas shares or a 35% premium to last close. The consideration implies an equity value of A$764.5mn and an enterprise value of A$919.2mn.
- The Scheme is subject to shareholder and ACCC approval. The ACCC recently cleared Qantas’19.9% stake in Alliance after a three-year investigation.
Before it’s here, it’s on Smartkarma
