Last Week in Event SPACE: Jardines, Keppel, Li & Fung, Unizo, National Storage, Metlifecare

Last Week in Event SPACE ...

• Setting up a long Jardine Strategic Hldgs (JS SP), short Jardine Matheson Holdings (JM SP) at 1.90x seemed obvious. As it was at 2.10x, 2.30x and 2.40x. At above 2.60x it was ridiculous. This was a clear SELL Jardine Matheson BUY Jardine Strategic switch for long-only investors and long-term investors. The ratio closed the week at 2.27x.
• Keppel Corp Ltd (KEP SP) sold off first, compared to its counterparts, as event-driven traders unwound positions earlier than levered exposure generalists. Then the rest of Singapore sold off faster. The previous Friday, the market implied a 95% chance of the deal not going through. That number has fallen to 55%.
• Global supply chain logistics company Li & Fung Ltd (494 HK) receives a substantial privatisation Offer premium from the founding family and Global Logistic Properties (GLP SP), but the deal has a whiff of opportunism and may still be blocked.
• The Unizo Holdings (3258 JP) saga may be coming to a close.
• I argued it would be tough for EQT to walk away from its firm Offer for Metlifecare Ltd (MET NZ). Nor why they would want to. The market sent a message saying otherwise.
• National Storage Reit (NSR AU) gets crushed after Public Storage (PSA US), the remaining of the three interested parties, threw in the towel. But at 0.7x P/B, this looks like an attractive entry point.
• Plus, other events, CCASS movements and Mood Spins.