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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chindata-group-holdings-adr" target="_blank" data-smartkarma-citation="entities:29274:1" rel="noopener">Chindata Group (CD US)</a> has entered a definite agreement with Bain Capital at US$8.60 per ADS, 7.5% higher than its previous offer of US$8.00 per ADS.</li>
<li>Completion is conditional on shareholder approval, dissenting shareholders representing less than 12% of outstanding shares and any applicable regulatory approvals. The completion conditions should be met.</li>
<li>CMC’s offer, while higher, does not meet the "<em>superior proposal</em>" criterion. At the last close price and December-end completion, the gross and annualised spread is 6.0% and 16.6%, respectively.</li>
</ul>



Chindata Group (CD US) has entered a definite agreement with Bain Capital at US$8.60 per ADS, 7.5% higher than its previous offer of US$8.00 per ADS.
Completion is conditional on shareholder approval, dissenting shareholders representing less than 12% of outstanding shares and any applicable regulatory approvals. The completion conditions should be met.
CMC’s offer, while higher, does not meet the "superior proposal" criterion. At the last close price and December-end completion, the gross and annualised spread is 6.0% and 16.6%, respectively.


Chindata (CD US): Bain’s Binding Proposal at US$8.60 Per ADS

Research Firm with a Qualitative Overlay, Pearl Gray Equity and Research

Pearl Gray Equity and Research

Research Firm with a Qualitative Overlay

Quantitative fund & research firm with a qualitative overlay. 

Our coverage: General U.S. with a skew towards the primary sector. 

Methods: Smart Beta/Factor Pricing, Neural Networks, Street Gossip, and Common Sense.

Equity Bottom-Up

<ul>
<li>Digital Realty Trust, Inc. is executing a phenomenal strategy, with additional pipeline developments coming online soon.</li>
<li>Digital Realty is faced with cyclical valuation concerns, we think they will be short-lived.</li>
<li>Digital Realty Trust, Inc. (<span class="ticker-hover-wrapper">NYSE:DLR</span>) presents an interesting talking point</li>
</ul>


Digital Realty Trust, Inc. is executing a phenomenal strategy, with additional pipeline developments coming online soon.
Digital Realty is faced with cyclical valuation concerns, we think they will be short-lived.
Digital Realty Trust, Inc. (NYSE:DLR) presents an interesting talking point


Digital Realty Trust: A Dividend Growth Investor's Pal

<ul>
<li>China Merchants Capital (CMC) <a href="https://en.cmcapital.com.cn/list/669" target="_blank" rel="noopener">disclosed</a> a competing preliminary non-binding proposal to acquire <a href="https://www.smartkarma.com/entities/chindata-group-holdings-adr" target="_blank" data-smartkarma-citation="entities:29274:1" rel="noopener">Chindata Group (CD US)</a> at US$9.20 per ADS, a 15.0% premium to Bain Capital’s US$8.00 per ADS offer.</li>
<li>Astonishingly, Chindata did not publicly disclose the CMC offer, which was sent to the special committee on 9 June, i.e., 34 days ago.</li>
<li>CMC must get Bain Capital’s support due to its 92.34% voting rights. The presence of a credible competing proposal will require Bain Capital to match CMC’s offer.</li>
</ul>


China Merchants Capital (CMC) disclosed a competing preliminary non-binding proposal to acquire Chindata Group (CD US) at US$9.20 per ADS, a 15.0% premium to Bain Capital’s US$8.00 per ADS offer.
Astonishingly, Chindata did not publicly disclose the CMC offer, which was sent to the special committee on 9 June, i.e., 34 days ago.
CMC must get Bain Capital’s support due to its 92.34% voting rights. The presence of a credible competing proposal will require Bain Capital to match CMC’s offer.


Chindata (CD US): China Merchants Capital’s Rival Privatisation Offer

Telco/Internet specialist

Kirk Boodry

Redex Research

NTT (Nippon Telegraph & Telephone) / Equity Bottom-Up

<ul>
<li>NTT's global data center business has 6% market share with annual revenue growth of 20% that is twice the industry average</li>
<li>We have updated our model and valuation summary to reflect the transfer of NTT Ltd, which operates the GDC business, into NTT Data</li>
<li>Our valuation remains unchanged although we have lowered our target price ¥4,500 to ¥4,450 for payment of the H1 dividend.  NTT remains a top pick in our coverage</li>
</ul>


NTT's global data center business has 6% market share with annual revenue growth of 20% that is twice the industry average
We have updated our model and valuation summary to reflect the transfer of NTT Ltd, which operates the GDC business, into NTT Data
Our valuation remains unchanged although we have lowered our target price ¥4,500 to ¥4,450 for payment of the H1 dividend.  NTT remains a top pick in our coverage


NTT (Buy) - Investor Day Highlights Global Data Center Business

<ul>
<li>
<a href="https://www.smartkarma.com/entities/21-vianet-group-inc-adr" target="_blank" data-smartkarma-citation="entities:8489:1" rel="noopener">21Vianet Group (VNET US)</a> disclosed a privatisation proposal from the founder at US$8.20 per ADS, a 2.5% premium to The Hina Group/Industrial Bank’s offer of US$8.00 (disclosed on 11 April).</li>
<li>The data centre industry continues to be a hotbed for M&amp;A. <a href="https://www.bloomberg.com/news/articles/2022-07-27/mbk-partners-is-said-to-weigh-rival-bid-for-chinese-data-center-firm-vnet" target="_blank" rel="noopener">Bloomberg reported</a> on 27 July that MBK Partners is mulling an offer for VNET. </li>
<li>The offer is unattractive, and Mr Cheng, with 28.79% of voting rights, will need the support of other substantial shareholders. This latest offer underlines the current mispricing of the shares</li>
</ul>



21Vianet Group (VNET US) disclosed a privatisation proposal from the founder at US$8.20 per ADS, a 2.5% premium to The Hina Group/Industrial Bank’s offer of US$8.00 (disclosed on 11 April).
The data centre industry continues to be a hotbed for M&amp;A. Bloomberg reported on 27 July that MBK Partners is mulling an offer for VNET. 
The offer is unattractive, and Mr Cheng, with 28.79% of voting rights, will need the support of other substantial shareholders. This latest offer underlines the current mispricing of the shares


VNET’s Opportunistic US$8.20 Bid from the Founder

United States

Digital Realty Trust, Inc. owns, acquires, repositions, and manages technology-related real estate.  The Company's properties contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise data center tenants.  Digital's property portfolio is located throughout the United States and in England.

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Digital Realty Trust (DLR US)

Chindata (CD US): Bain’s Binding Proposal at US$8.60 Per ADS

Bain's revised offer is still unattractive, but the completion conditions should be met. At the last close price and December-end completion, the...

Arun George

Digital Realty Trust: A Dividend Growth Investor's Pal

Digital Realty Trust, Inc. is executing a phenomenal strategy, with additional pipeline developments coming online soon. Digital Realty is faced...

Pearl Gray Equity and Research

Chindata (CD US): China Merchants Capital’s Rival Privatisation Offer

CMC must get Bain Capital’s support due to its 92.34% voting rights. The presence of a credible competing proposal will require Bain Capital to...

Arun George

NTT (Buy) - Investor Day Highlights Global Data Center Business

NTT’s data center business is growing 20%+/year before currency tailwinds as the NTT Data integration kicks off. We have updated our model and SOTP...

Kirk Boodry

VNET’s Opportunistic US$8.20 Bid from the Founder

The offer is unattractive. Nevertheless, with the data centre M&A activity levels remaining elevated, the current mispricing of the shares will...

Arun George

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