Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven


For the month of October, 15 new deals were discussed on Smartkarma with an overall announced deal size of ~US$31bn.


Clicking on the company name in the table below will take you to the entity page where you can read the initial insight(s) written by Smartkarma contributors on these new deals and follow up discussions, or simply click on the insight link(s) below the name.






New Deals


Industry


Size (US$bn)


Type


Premium




Australia




Coca Cola Amatil (CCL AU) 
Beverage Bottler
6.9
Poss. Scheme
25%


Coca Cola Amatil: Flat Or Fizzy?







Link Administration Holdings (LNK AU) 
Super registry
2.1
Poss. Scheme
30%


Link Admin/PEP: All Together Now. Again Link Admin: Hardball Tactics After Meagre Bump 



Northern Star Resources (NST AU) / Saracen Mineral Holdings (SAR AU) 
Mining
4.4
Scheme




Northern Star/Saracen: Merger Of Equals
Saracen – Trade the Northern Star Deal and Then Stay Long Northern Star




Hong Kong




CIMC-TianDa Holdings (445 HK) 
Airport facilities
0.3
Scheme
20.36%


CIMC-Tianda (445 HK): Scheme Offer Lead By CIMC



Hengxing Gold Holding (2303 HK) 
Mining
0.3
Pre-con Scheme
(2.43%)


Hengxing (2303 HK): Offer From Shandong Gold



Powerleader Science &amp; Tech (8236 HK) 
Cloud Computing
0.1
Merger by Absorption
14.6%


Powerleader (8236 HK): Small Deal, Trading Wide



Shanghai Prime Machinery H (2345 HK) 
Turbines
0.4
Merger by Absorption
68.4%


Shanghai Prime (2345 HK): Delisting Offer From Parent



Sun Art Retail (6808 HK) 
Hypermarkets
2.2
MGO
2.14%


Sun Art (6808 HK): Alibaba Takes Control



Japan




Medical &amp; Biological Lab (4557 JP) 
Diagnostics
0.1
Tender Offer
23.8%


JSR (4185 JP) Tender Offer for Medical &amp; Biological Labs (4557 JP)


Shimachu Co Ltd (8184 JP)
Retailer
1.6 - 2.1
Tender Offer
45.8%/91.0%



DCM Does a Full Takeover of Shimachu - Looks Like a Strong Price. Look Again Nitori To Make a Rival Bid for Shimachu? More Fun To Go 
Gaming Out a Nitori Bid for Shimachu Nitori Bids UP For Shimachu - Now Things Slow Down  




US




HUYA Inc (HUYA US) 
Gaming
7.2
Merger



Huya – Generous for Douyu and the New Global Streaming Landscape Gets Interesting



PNM Resources (PNM US) 
Energy
4.3
Tender Offer
10%


PNM Resources - Iberdrola: Friendly Acquisition



Wanda Sports Group (WSG US) 
Events
0.1
Prelim Proposal
38.9%


Wanda Sports (WSG US): Preliminary Proposal From Dalian Wanda



Europe/UK




G4S PLC (GFS LN) 
Security Service
0.4
Cash Offer
30%


G4S - GardaWorld: Lowball Offer



Talktalk Telecom (TALK LN) 
Telco
1.0
Non-binding Offer
17%


TalkTalk - Toscafund: Preliminary &amp; Non-Binding Proposal





Source: Smartkarma Insights


The average premium for the new deals announced (or first discussed) in October was ~25% and the YTD average premium for all deals discussed on Smartkarma (121 all-in) is ~32%.  The average for all deals discussed on Smartkarma in 2019 (145 deals all-in) was 31.5%.



The charts below provide a snapshot of deals YTD discussed on Smartkarma. Where the deal is a merger of equals or similar, I've assigned no premium.







Summary of News in October of Arb Situations On Smartkarma's Radar



(Again, click on the company names to take to you to the insights and/or discussion posts for a more comprehensive read-through on each situation. Where a new insight was written on these names in July, I've included a link, in bold, to that insight in italics.)






Australia


Comments (with links to announcements &amp; insights)




3P Learning (3PL AU) 

15-Oct: FRB approval 20-Oct: Scheme Meeting set for the 20 Nov




Cardinal Resources (CDV AU) 

22-Oct: Cardinal Resources: Nordgold's "Competing Offer"
23-Oct: Cardinal announced that shareholders holding 19.38% of shares out intend to accept Shandong's unconditional off-market Offer by 30 October - provided there be no superior proposal, or is Shandong extends its Offer (currently expected to close on the 30 October, unless extended). 23-Oct: Nordgold has now lodged an application with the Takeovers Panel concerning “the clear and unambiguous interpretation” of Shandong’s Last and Final Statement.
27-Oct: Nordgold has withdrawn its Takeovers Panel application. But stands its ground that Shandong's statements are materially misleading.




Citadel Group (CGL AU) 

29-Oct: Scheme Meeting set for the 1 December.




Cromwell Property (CMW AU) 

No October update




DWS Ltd (DWS AU) 

13-Oct: DWS will not declare or pay any permitted special dividend. The Scheme payment will be fixed at A$1.20/share.




OptiComm Ltd (OPC AU) 

13-Oct: OptiComm: Aware Super's Superior Optics 15-Oct: OptiComm: Uniti Sees Aware And Raises




Village Roadshow (VRL AU) 

6-Oct: Mittleman bumps stake to 10.09% (from 8.50% previously) and according to media reports, opposes BGH's Scheme.    7-Oct: Village Roadshow (VRL AU) said it would proceed with the Scheme - and is engaged in correspondence with Mittleman.   12-Oct: The Independent Expert concludes the Offer is fair &amp; reasonable. 










Hong Kong


Comments (with links to announcements &amp; insights)




Allied Properties (H.K.) (56 HK) 
5-Oct: Remarkably - the judge has declined to sanction the Scheme.
Here's the judgment. Para 66 mentions the headcount test. I have no clue why - HK-incorporated companies do not adhere to a headcount test. Baffling.
12-Oct: Allied Properties (56 HK): Amateur Hour 19-Oct: Allied has appealed the High Court judgment. The Appeal will be heard on Monday, 23rd November 2020 at 10:00 a.m.



AMVIG Holdings (2300 HK) 
4-Oct: SPA is done - conditional MGO triggered. Composite doc to be dispatched on or before 15 October.  15-Oct: Composite doc has been delayed until the 2 November from the 15 October. This was to be expected. I had the 30 October in my initial timetable. 



Beijing Jingneng Clean Energy (579 HK) 
5-Oct: In its monthly update, the company announces that there is no update.



Car Inc (699 HK) 
No October update



CGN New Energy Holdings (1811 HK) 
30-Sep: The deal is off.



Changshouhua Food (1006 HK) 
26-Oct: Scheme doc out - court meeting to be held on the 19 November. Cheques on (or before) the 14 December. IFA (Somerley) considers the Offer fair &amp; reasonable. 



China Zhongdi Dairy (1492 HK) 
16-Oct: The despatch of the Composite Doc has been pushed out to the 18 January 2021. A significant delay. This may not complete until early 2Q21.  23-Oct: I see 12.11% of shares out have moved into Halycon, according to CCASS. That is Green Farmlands stake, part of the Offeror's.  27-Oct: 27.99% of shares out have given irrevocables to accept the MGO. That will take the Offeror's stake to 71.74%, at a minimum, under the MGO.



Cross Harbour Holdings (32 HK) 
7-Oct: The Composite Doc has been delayed until the 23 Oct (on or before) from the 8 October. Such a delay is pretty standard.   23-Oct: The Composite Doc for Cross Harbour Holdings (32 HK) has been despatched. The first close is the 23 Nov.



Get Nice Holdings (64 HK) 

22-Oct: Composite doc dispatched for Get Nice Holdings (64 HK). The first close is the 13 November. 




Haier Electronics Group Co (1169 HK) 

12-Oct: Haier Electronics Group Co (1169 HK) announced that Haier Smart Home (600690 CH)'s application with the CSRC for the proposed issuance of HSH H shares is "progressing".




Leyou Technologies (1089 HK) 

8-Oct: Re: regulatory approvals, Leyou Technologies (1089 HK) said Canadain and US regulatory bodies have signed off on the Offer from Tencent Holdings (700 HK). Scheme doc to be despatched on or before the 9 November. 




Macau Legend Development (1680 HK) 

5-Oct: The stake sale completed. The MGO is now triggered. The Composite Doc is expected to be despatched on the 12 October. 12-Oct: The Composite Document has been delayed until the 21 October, from the 12 October. This was expected but is still a full month earlier than what I would have anticipated.   21-Oct: The Composite Document has now been further delayed until the 3 November. Getting closer to my 21 November despatch target. 




Yixin Group Ltd (2858 HK) 
23-Oct: Bitauto Holdings (BITA US) shareholders approve the merger plan. The merger is expected to close on or around the 10 November. The Composite Doc for Yixin Group Ltd (2858 HK)'s downstream MGO will then be despatched 7 business days later.









India


Comments (with links to insights)




Allcargo Logistics (AGLL IN) 

25-Oct: Allcargo Logistics (AGLL IN): Shareholder Vote Encouraging. Buying Opportunity




Hexaware Technologies (HEXW IN) 

No October update




INEOS Styrolution India Limited (INEOS IN) 

No October update




J.B. Chemicals &amp; Pharmaceut (JBCP IN) 

No October update




Sequent Scientific (SEQ IN) 

No October update




Vedanta Ltd (VEDL IN) 

4-Oct: Vedanta Limited Reports Results: KEY Info on Deal Funding Embedded 8-Oct: Vedanta Limited Reports Results: KEY Info on Deal Funding Embedded 8-Oct: Vedanta - Someone Is Playing Silly Buggers But Even On The Last Day Investor Strategy Matters 11-Oct: Vedanta Delisting Proposal/Offer Fails (We Think) 11-Oct: Vedanta (VEDL IN): A Failed Delisting Will Now Pressure The Stock 13-Oct: VEDL Delisting Fail Day1 - Reading Between the Lines of the Trading Data 21-Oct: Vedanta Limited - Caught in Economic Purgatory but Governance Hell?

















Indonesia


Comments 




Bank Permata (BNLI IJ) 

No October update











Japan


Comments (with links to insights)




Cocokara Fine (3098 JP) 
No October update



FamilyMart Co Ltd (8028 JP) 

22-Oct: FamilyMart Co Ltd (8028 JP) has now officially been designated a Security to be Delisted by the TSE. The last day of trading is November 11. Delisting Date is November 12. 22-Oct: Familymart Delisting and Its Nikkei 225 Replacement Is Nexon (3659)




Hinokiya Holdings (1413 JP) 

No October update



 Hitachi Capital (8586 JP) / Mitsubishi UFJ Lease &amp; Finance (8593 JP) 

26-Oct: The Right Trade May Be Hitachi




Keihin Corp (7251 JP) / Showa Corp (7274 JP) 

16-Oct: Honda Tenders Done - Now For The Residuals 28-Oct: The TOPIX exclusions on Showa Corp (7274 JP), Nissin Kogyo (7230 JP), and Keihin Corp (7251 JP) took place after the close. Now it will be the trickle-out until delisting. Delisting will be on 11 November, and the last day of trading will be on the 10th. Effective Date of the Acquisition is the 13th of November. 




Kirindo Holdings (3194 JP) 

16-Oct: In what might be a first that I have seen, Kirindo Holdings (3194 JP) today announced the Record Date for the EGM to be held to squeeze out minorities. That's not unusual. What IS unusual is that it has happened prior to the end of the Tender Offer. The EGM itself will be sometime in December. The date of the EGM may be announced on 19 October.  27-Oct: successful at 69.75%. Now we head to EGM and delisting. 




LIXIL VIVA (3564 JP) 

15 Oct:  Buyback Tender successful.




Mcubs Midcity Investment Cor (3227 JP) 

22-Oct: Unitholders have approved the Deal. Japan Retail Fund Investment (8953 JP) unit holders have also voted in favour of the transaction. 




Nichii Gakkan Co (9792 JP) 

Delisting expected 5 November




NTT Docomo Inc (9437 JP) 

13-Oct: NTT Docomo: The Three Arbs and the Great Re-Allocation Trade




Ryoyo Electro (8068 JP) 

No October update




Sanyo Chemical Ind (4471 JP) /  Nippon Shokubai (4114 JP) 
22-Oct: SanyoChem/Shokubai Deal Cancelled - The Trick Is NOT to Look Inside the Diaper




Softbrain (4779 JP) 

No October update
















New Zealand


Comments (with links to announcements)




Metlifecare Ltd (MET NZ) 

3-Oct: Metlifecare Ltd (MET NZ) shareholders approve Scheme.  "It is anticipated that the Scheme will be implemented and shareholders will be paid NZ$6 per share on or around 29 October 2020". 
8-Oct: Metlifecare Ltd (MET NZ) has announced a "shareholder has lodged a Notice of Opposition to the High Court application for the Scheme of Arrangement with Asia Pacific Village Group Limited".
14-Oct: The High Court hearing has been delayed until the 20 October from the 15 October. 
15-Oct:  Metlifecare: Statutory Vacuum
18-Oct: The Panel has given a "no objection" statement. The Court does not have to rely on this statement - but it usually does. This looks (finally) done. 
20-Oct: Metlifecare: Scheme Sanctioned. Potential Bad Precedent Averted











Singapore


Comments (with links to insights and announcements)




Accordia Golf Trust (AGT SP) 

Now in progress/wind-down mode




Capitaland Commercial Trust (CCT SP) 

12-Oct: Capitaland Commercial Trust (CCT SP) has announced that the Trust Scheme was sanctioned by the Court yesterday and confirmed that the last trading day of the CCT units will be the 16 October.




ESR-REIT (EREIT SP) / Sabana Shari'ah Compliant Industrial REIT (SSREITR SP) 

No October update










Taiwan


Comments 




Boardtek Electronics (5349 TT) 
No October update



Casetek Holdings (5264 TT) 
1-Oct: According to various media sources, shareholders have approved the merger with Pegatron. 








Thailand


Comments 




COL PCL (COL TB) 
No October update










Vietnam


Comments (with links to announcements)




Viglacera Corp (VGC VN) 
No October update










Middle East


Comments 




Samba Financial Group (SAMBA AB) /
National Commercial Bank (NCB AB) 

No October update









Europe/UK


Comments (with links to announcements and insights)




Ahlstrom-Munksjo (AM1 FH) 
No October update



Altice NV A (ATC NA) 
No October update



Bolsas y Mercados Espanoles (BME SM) 
No October update



CaixaBank SA (CABK SM) 
28-Oct: Bankia - CaixaBank: Merger in Progress, Spread Attractive




Play Communications SA (1P1 GR) 
No October update



William Hill (WMH LN) 
5-Oct: William Hill - Caesars (Almost) Done Deal, Trading Above Terms






Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Earlier this week, <a href="https://www.smartkarma.com/entities/coca-cola-amatil-ltd" target="_blank" data-smartkarma-citation="entities:675:1" rel="noopener">Coca Cola Amatil (CCL AU)</a> (CCL), one of the largest bottlers and distributors of <a href="https://www.smartkarma.com/entities/coca-cola-co-the" target="_blank" data-smartkarma-citation="entities:979:1" rel="noopener">Coca Cola Co (KO US)</a>’s range of products, announced a non-binding indicative proposal from <a href="https://www.smartkarma.com/entities/coca-cola-european-partners" target="_blank" data-smartkarma-citation="entities:29709:1" rel="noopener">Coca-Cola European Partners (CCEP US)</a> (CCEP) to acquire 69.2% of the share capital of CCL (at A$ 12.75 per share in cash, adjusted for 2H20 dividends paid), held by shareholders other than The Coca-Cola Company (KO).Upon implementation of the above proposal, CCEP will acquire 10.8% of CCL’s share capital from KO at A$9.75 per share. The remaining 20% will be acquired upon completion at A$10.75 per share.

Earlier this week, Coca Cola Amatil (CCL AU) (CCL), one of the largest bottlers and distributors of Coca Cola Co (KO US)’s range of products, announced a non-binding indicative proposal from Coca-Cola European Partners (CCEP US) (CCEP) to acquire 69.2% of the share capital of CCL (at A$ 12.75 per share in cash, adjusted for 2H20 dividends paid), held by shareholders other than The Coca-Cola Company (KO).Upon implementation of the above proposal, CCEP will acquire 10.8% of CCL’s share capital from KO at A$9.75 per share. The remaining 20% will be acquired upon completion at A$10.75 per share.

A Generous Offer By Coca-Cola European Partners

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<a href="https://www.smartkarma.com/entities/coca-cola-european-partners" target="_blank" data-smartkarma-citation="entities:29709:1" rel="noopener">Coca-Cola European Partners (CCEP US)</a> announced on 25 October that it has made a non-binding proposal to acquire <a href="https://www.smartkarma.com/entities/coca-cola-amatil-ltd" target="_blank" data-smartkarma-citation="entities:675:1" rel="noopener">Coca Cola Amatil (CCL AU)</a>.
<ul>
<li>CCL’s independent shareholders would get AUD12.75 per share, in cash.</li>
<li>CCL's shares shot up by 16.3%, while those of CCEP closed 2.7% lower.</li>
</ul>
Although the rationale for a deal is unclear to me, CCEP can afford the acquisition.
CCL was getting its fizz back: CCL shares had fallen by 3% during 2019 to $10.75 (prior to the offer announcement), but are trading above their March low of AUD7.86. I view CCL as a strong company, with a clear strategy; growth opportunities (expanding offer, overseas growth); and growing market share.
However, the current environment is likely to see a structural shift to eating at home and less casual dining at restaurants; a focus on healthier alternatives away from sugary and carbonated drinks; and a resulting decline in restaurant numbers, all of which are dilutive to CCL’s margins.
The offer price represents 22.6x Forward P/E vs. 19.2x for CCEP, thus looking a generous offer. Recommendation is LONG CCL.
<ul>
<li>Gross spread is 1.9% on a deal that is highly likely to succeed.</li>
<li>Average 3m trading volume is 2.8 million shares.</li>
</ul>

Coca-Cola European Partners (CCEP US) announced on 25 October that it has made a non-binding proposal to acquire Coca Cola Amatil (CCL AU).

CCL’s independent shareholders would get AUD12.75 per share, in cash.
CCL's shares shot up by 16.3%, while those of CCEP closed 2.7% lower.

Although the rationale for a deal is unclear to me, CCEP can afford the acquisition.
CCL was getting its fizz back: CCL shares had fallen by 3% during 2019 to $10.75 (prior to the offer announcement), but are trading above their March low of AUD7.86. I view CCL as a strong company, with a clear strategy; growth opportunities (expanding offer, overseas growth); and growing market share.
However, the current environment is likely to see a structural shift to eating at home and less casual dining at restaurants; a focus on healthier alternatives away from sugary and carbonated drinks; and a resulting decline in restaurant numbers, all of which are dilutive to CCL’s margins.
The offer price represents 22.6x Forward P/E vs. 19.2x for CCEP, thus looking a generous offer. Recommendation is LONG CCL.

Gross spread is 1.9% on a deal that is highly likely to succeed.
Average 3m trading volume is 2.8 million shares.


Coca-Cola European Partners - Coca-Cola Amatil: Non-Binding Proposal

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<a href="https://www.smartkarma.com/entities/coca-cola-amatil-ltd" target="_blank" data-smartkarma-citation="entities:675:1" rel="noopener">Coca Cola Amatil (CCL AU)</a> is one of the largest bottlers and distributors of ready-to-drink non-alcoholic and alcoholic beverages and coffee in the Asia Pacific region. <a href="https://www.smartkarma.com/entities/coca-cola-european-partners" target="_blank" data-smartkarma-citation="entities:29709:1" rel="noopener">Coca-Cola European Partners (CCEP US)</a>/CCEP  has made a non-binding offer to acquire 69.2% of the issued share capital of Amatil, which is held by shareholders other than <a href="https://www.smartkarma.com/entities/coca-cola-co-the" target="_blank" data-smartkarma-citation="entities:979:1" rel="noopener">Coca Cola Co (KO US)</a>/TCCC i.e. independent shareholders, through a scheme of arrangement. Independent shareholders will receive A$12.75 per share in cash less any final 2H20 dividends paid. The offer price represents a premium of 23% to the 1-week VWAP. TCCC’s 30.8% shareholding in Amatil will be separately acquired in two or more tranches on less favourable terms to independent shareholders. The transaction is targeted for a 1Q20 completion. <div class="content-highlight">Unlike previous takeover offers for Amatil, this proposal comes with TCCC’s backing. The key next step is for CCEP and Amatil to enter into a binding agreement after a short due diligence period. The scheme of arrangement will require Amati shareholder approval. Overall, we believe that the offer price is attractive and anticipate shareholder approval for the scheme. </div>

Coca Cola Amatil (CCL AU) is one of the largest bottlers and distributors of ready-to-drink non-alcoholic and alcoholic beverages and coffee in the Asia Pacific region. Coca-Cola European Partners (CCEP US)/CCEP  has made a non-binding offer to acquire 69.2% of the issued share capital of Amatil, which is held by shareholders other than Coca Cola Co (KO US)/TCCC i.e. independent shareholders, through a scheme of arrangement. Independent shareholders will receive A$12.75 per share in cash less any final 2H20 dividends paid. The offer price represents a premium of 23% to the 1-week VWAP. TCCC’s 30.8% shareholding in Amatil will be separately acquired in two or more tranches on less favourable terms to independent shareholders. The transaction is targeted for a 1Q20 completion. Unlike previous takeover offers for Amatil, this proposal comes with TCCC’s backing. The key next step is for CCEP and Amatil to enter into a binding agreement after a short due diligence period. The scheme of arrangement will require Amati shareholder approval. Overall, we believe that the offer price is attractive and anticipate shareholder approval for the scheme. 

Coca-Cola European Partners’ Takeover Bid for Coca-Cola Amatil

Australia's largest non-alcoholic beverage bottler <a href="https://www.smartkarma.com/entities/coca-cola-amatil-ltd" target="_blank" data-smartkarma-citation="entities:675:1" rel="noopener">Coca Cola Amatil (CCL AU)</a> has announced an indicative proposal from Coca-Cola European Partners plc (CCEP)  for:
<ul>
<li>the acquisition of all the issued shares held by independent shareholders of CCL by way of a Scheme of Arrangement (for $12.75/shares, cash, less any final 2H20 dividends declared and paid prior to the implementation of any Scheme); and</li>
<li>a separate acquisition of CCL shares held indirectly by <a href="https://www.smartkarma.com/entities/coca-cola-co-the" target="_blank" data-smartkarma-citation="entities:979:1" rel="noopener">Coca Cola Co (KO US)</a> (TCCC) - 30.807% of shares out - which would be on terms less favourable than the terms offered to CCL’s independent shareholders.</li>
</ul>
A$12.75/share is a 25%/38% premium to the one-month/three-month VWAP. The offer backs out a 12.0x/14.3x FY19/FY20E EV/EBITDA, both exceeding the median for peers.
Optically, the offer price is a multi-year high, excluding a handful of days in February this year when shares traded above the indicated terms shortly after the announcement of CCL's FY19 results.
This is a non-binding proposal, subject to due diligence. Australia has a reputation as an indicative proposal graveyard. This should not be the case here - this is a company well known to the bidder.
Currently trading at a 3.4/10.2% gross/annualised spread, assuming around four-months to compete.
This transaction looks decidedly fizzy.
As always, more below the fold.

Australia's largest non-alcoholic beverage bottler Coca Cola Amatil (CCL AU) has announced an indicative proposal from Coca-Cola European Partners plc (CCEP)  for:

the acquisition of all the issued shares held by independent shareholders of CCL by way of a Scheme of Arrangement (for $12.75/shares, cash, less any final 2H20 dividends declared and paid prior to the implementation of any Scheme); and
a separate acquisition of CCL shares held indirectly by Coca Cola Co (KO US) (TCCC) - 30.807% of shares out - which would be on terms less favourable than the terms offered to CCL’s independent shareholders.

A$12.75/share is a 25%/38% premium to the one-month/three-month VWAP. The offer backs out a 12.0x/14.3x FY19/FY20E EV/EBITDA, both exceeding the median for peers.
Optically, the offer price is a multi-year high, excluding a handful of days in February this year when shares traded above the indicated terms shortly after the announcement of CCL's FY19 results.
This is a non-binding proposal, subject to due diligence. Australia has a reputation as an indicative proposal graveyard. This should not be the case here - this is a company well known to the bidder.
Currently trading at a 3.4/10.2% gross/annualised spread, assuming around four-months to compete.
This transaction looks decidedly fizzy.
As always, more below the fold.

Australia

Coca-Cola Amatil Limited manufactures, distributes and sells carbonated soft drinks along with still and mineral waters, fruit drinks, ready-to-drink coffee and tea and flavored milk drinks. The Company also rents and services commercial refrigeration equipment to food/beverage manufacturers.

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Coca Cola Amatil (CCL AU)

(Mostly) Asia M&A: October 2020 Roundup

15 new deals were discussed on Smartkarma in October with an overall deal size of ~US$31bn. The average premium was ~25% and the YTD average...

David Blennerhassett

A Generous Offer By Coca-Cola European Partners

CCL is one of the APAC region’s largest bottlers and distributors of alcoholic and non-alcoholic RTD beverages with operations in Australia, New...

Oshadhi Kumarasiri

Coca-Cola European Partners - Coca-Cola Amatil: Non-Binding Proposal

The offer price represents 22.6x Forward P/E vs. 19.2x for CCEP, thus looking a generous offer. Recommendation is LONG CCL. Gross spread is 1.9% on...

Jesus Rodriguez Aguilar

Coca-Cola European Partners’ Takeover Bid for Coca-Cola Amatil

Coca-Cola European Partners has made a non-binding offer to acquire Amatil at A$12.75 per share in cash less 2H20 dividends paid. Overall, we...

Arun George

Coca Cola Amatil: Flat Or Fizzy?

Coca-Cola European Partners, the world’s largest Coca-Cola bottler by revenue, tables a clean take-private proposal for Coca Cola Amatil.

David Blennerhassett

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