European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>On 9 January, the Scheme was approved at the Court Meeting, and the resolution to implement it was approved at the GM. Court sanction will take place on 25 January.</li>
<li>Settlement should take place by 12 February. Several risk arbs have been jumping on this deal, in spite of the low liquidity. </li>
<li>A done deal. Gross spread is 0.42%, while the annualised return is 8.81%. Reiterate BUY.</li>
</ul>


On 9 January, the Scheme was approved at the Court Meeting, and the resolution to implement it was approved at the GM. Court sanction will take place on 25 January.
Settlement should take place by 12 February. Several risk arbs have been jumping on this deal, in spite of the low liquidity. 
A done deal. Gross spread is 0.42%, while the annualised return is 8.81%. Reiterate BUY.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/dx-group-plc" target="_blank" data-smartkarma-citation="entities:25929:1" rel="noopener">DX Group PLC (DX/ LN)</a> agreed to a 47.5p/share offer (plus 1p dividend, ex-dividend 16 November) from H.I.G., 33% premium, 8.8x 2023a EBITDA, to be conducted via scheme of arrangement.</li>
<li>DX had a substantial improvement in revenue and profitability in 2018-2023. Although irrevocables represent 33.1% of the share capital, some shareholders have some doubts and letters of intent total 21.5%.</li>
<li>Some shareholders will try to extract more: DCF-based 50p could be defended, 5.2% above current offer. Spread 1.05%/3% (gross/annualised, assuming 30 March settlement). I'd be long in case of bump-up.</li>
</ul>



DX Group PLC (DX/ LN) agreed to a 47.5p/share offer (plus 1p dividend, ex-dividend 16 November) from H.I.G., 33% premium, 8.8x 2023a EBITDA, to be conducted via scheme of arrangement.
DX had a substantial improvement in revenue and profitability in 2018-2023. Although irrevocables represent 33.1% of the share capital, some shareholders have some doubts and letters of intent total 21.5%.
Some shareholders will try to extract more: DCF-based 50p could be defended, 5.2% above current offer. Spread 1.05%/3% (gross/annualised, assuming 30 March settlement). I'd be long in case of bump-up.


H.I.G./DX (Group): Recommended Offer with Possibility of Bump-Up

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>We expected a blandiloquent but bletcherous bump for <a href="https://www.smartkarma.com/entities/t-k-toka-co-ltd" target="_blank" data-smartkarma-citation="entities:18678:1" rel="noopener">T&amp;K Toka Co Ltd (4636 JP)</a>.  We got bletcherous.</li>
<li>With the Hang Seng Index dipping below the 15,000 mark earlier this week, time to dust off some old school perspective with Benjamin Graham's Net Nets.</li>
<li>JIC CEO Yokoo reckons the <a href="https://www.smartkarma.com/entities/jsr-corp" target="_blank" data-smartkarma-citation="entities:17620:1" rel="noopener">JSR Corp (4185 JP)</a> deal to be done by March-end. Language is vague. If that means to start by then, that's still 30% annualised.</li>
</ul>


We expected a blandiloquent but bletcherous bump for T&amp;K Toka Co Ltd (4636 JP).  We got bletcherous.
With the Hang Seng Index dipping below the 15,000 mark earlier this week, time to dust off some old school perspective with Benjamin Graham's Net Nets.
JIC CEO Yokoo reckons the JSR Corp (4185 JP) deal to be done by March-end. Language is vague. If that means to start by then, that's still 30% annualised.


Last Week in Event SPACE: T&K TOKA, Liquidated HK Stocks, JSR, Orecorp, Brilliance Auto, Hollysys

<ul>
<li>Now the time decay to expected approvals and tender offer start for <a href="https://www.smartkarma.com/entities/jsr-corp" target="_blank" data-smartkarma-citation="entities:17620:1" rel="noopener">JSR Corp (4185 JP)</a> are getting steep. Time to Fight The FUD.</li>
<li>The accretion trade is going to plan as <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus NV (PRX NA)</a> sells <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>; and Prosus and Tencent both back their own shares.</li>
<li>
<a href="https://www.smartkarma.com/entities/hollysys-automation-technologies" target="_blank" data-smartkarma-citation="entities:26078:1" rel="noopener">Hollysys Automation Technologies (HOLI US)</a>'s board capacity to sabotage calling an SGM has finally run out of puff.</li>
</ul>


Now the time decay to expected approvals and tender offer start for JSR Corp (4185 JP) are getting steep. Time to Fight The FUD.
The accretion trade is going to plan as Prosus NV (PRX NA) sells Tencent (700 HK); and Prosus and Tencent both back their own shares.

Hollysys Automation Technologies (HOLI US)'s board capacity to sabotage calling an SGM has finally run out of puff.


Last Week in Event SPACE: JSR, Prosus/Tencent, Hollysys, Tata Consultancy, Geely, EOFlow

United Kingdom

DX (Group) PLC is an independent logistics and parcel distribution company operating throughout the UK and Ireland. The Company provides delivery services for mail, parcels and two-man deliveries to business and residential addresses nationwide. DX handles goods from retailers in many industries and provides identity documents and visas for the government and foreign embassies.

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DX Group PLC (DX/ LN)

H.I.G./DX (Group): Spread

On 9 January, the Scheme was approved at the Court Meeting, and the resolution to implement it was approved at the GM. Risk arbs are invested...

Jesus Rodriguez Aguilar

H.I.G./DX (Group): Recommended Offer with Possibility of Bump-Up

DX Group PLC has agreed to a 47.5p/share offer from H.I.G., representing a 33% premium and 8.8x 2023a EBITDA. Some shareholders have doubts and...

Jesus Rodriguez Aguilar

Last Week in Event SPACE: T&K TOKA, Liquidated HK Stocks, JSR, Orecorp, Brilliance Auto, Hollysys

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Last Week in Event SPACE: JSR, Prosus/Tencent, Hollysys, Tata Consultancy, Geely, EOFlow

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

H.I.G./DX (Group): Spread

On 9 January, the Scheme was approved at the Court Meeting, and the resolution to implement it was approved at the GM. Risk arbs are invested...

Jesus Rodriguez Aguilar

H.I.G./DX (Group): Recommended Offer with Possibility of Bump-Up

​DX Group PLC has agreed to a 47.5p/share offer from H.I.G., representing a 33% premium and 8.8x 2023a EBITDA. Some shareholders have doubts and...

Jesus Rodriguez Aguilar

Last Week in Event SPACE: T&K TOKA, Liquidated HK Stocks, JSR, Orecorp, Brilliance Auto, Hollysys

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Last Week in Event SPACE: JSR, Prosus/Tencent, Hollysys, Tata Consultancy, Geely, EOFlow

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

DX Group PLC has agreed to a 47.5p/share offer from H.I.G., representing a 33% premium and 8.8x 2023a EBITDA. Some shareholders have doubts and...