European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

The recent reforms incorporate "loyalty shares" as an option, which in practice come to transform the 'one share one vote' rule that prevailed in listed companies to protect equal voting rights of shareholders. The instrument equates the Spanish rules with those of other European Union countries, such as Germany, Italy, France or the Netherlands, among others, and aims to reward long-term investors, also protecting companies against short-term investors (opportunistic funds).
The Government toughens the takeover law before the arrival of 'loyal investors' on fear that hard core shareholders will take control of Spanish companies with the new double voting system.
According to the change in the regulation, an investor who exceeds 30% of the vote of a company listed due to the double voting rights of the loyalty shares, will have three months to decide whether to launch a takeover bid, reduce participation or waive its new political rights.
The Ministry of Finance discreetly introduces the change in the new Securities Market Law.
In Spain, the companies that establish the double voting system will be less prone to receiving a takeover offer. If it is already difficult to carry out an offer now without the support of the hard core nucleus on shareholders (for instance, MásMóvil has had to agree with those of <a href="https://www.smartkarma.com/entities/euskaltel-sa" target="_blank" data-smartkarma-citation="entities:21263:1" rel="noopener">Euskaltel SA (EKT SM)</a> ), it will be next to impossible under the new framework.

The recent reforms incorporate "loyalty shares" as an option, which in practice come to transform the 'one share one vote' rule that prevailed in listed companies to protect equal voting rights of shareholders. The instrument equates the Spanish rules with those of other European Union countries, such as Germany, Italy, France or the Netherlands, among others, and aims to reward long-term investors, also protecting companies against short-term investors (opportunistic funds).
The Government toughens the takeover law before the arrival of 'loyal investors' on fear that hard core shareholders will take control of Spanish companies with the new double voting system.
According to the change in the regulation, an investor who exceeds 30% of the vote of a company listed due to the double voting rights of the loyalty shares, will have three months to decide whether to launch a takeover bid, reduce participation or waive its new political rights.
The Ministry of Finance discreetly introduces the change in the new Securities Market Law.
In Spain, the companies that establish the double voting system will be less prone to receiving a takeover offer. If it is already difficult to carry out an offer now without the support of the hard core nucleus on shareholders (for instance, MásMóvil has had to agree with those of Euskaltel SA (EKT SM) ), it will be next to impossible under the new framework.

Loyalty Shares in Spain: Double-Voting Rights Could Hinder Takeovers

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Several days ago, <a href="https://www.smartkarma.com/entities/20123" target="_blank" data-smartkarma-citation="entities:20123:1">Spotless Group Holdings Ltd (SPO AU)</a> management had come out saying they intended to ask shareholders to reject the <a href="https://www.smartkarma.com/entities/12350" target="_blank" data-smartkarma-citation="entities:12350:1">Downer EDI Ltd (DOW AU)</a> Offer. They had said that a "global facilities management company" was in talks to make a competing bid. It appears that company was in doing due diligence for three weeks until April 22. Then those talks stopped. Overnight, <a href="https://www.smartkarma.com/entities/20123" target="_blank" data-smartkarma-citation="entities:20123:1">Spotless Group Holdings Ltd (SPO AU)</a> has released its Target Statement with regard to the Offer that <a href="https://www.smartkarma.com/entities/12350" target="_blank" data-smartkarma-citation="entities:12350:1">Downer EDI Ltd</a>…

Several days ago, Spotless Group Holdings Ltd (SPO AU) management had come out saying they intended to ask shareholders to reject the Downer EDI Ltd (DOW AU) Offer. They had said that a "global facilities management company" was in talks to make a competing bid. It appears that company was in doing due diligence for three weeks until April 22. Then those talks stopped. Overnight, Spotless Group Holdings Ltd (SPO AU) has released its Target Statement with regard to the Offer that Downer EDI Ltd…

Spotless Stains Offer Process, Issues Target Statement Without IE Report

As I mentioned in <a href="https://www.smartkarma.com/insights/downer-raids-spotless-register-launches-hostile-takeover-offer-rights-offer" target="_blank" data-smartkarma-citation="insights:9463">Downer Raids Spotless Register, Launches Hostile Takeover Offer &amp; Rights Offer</a>, the likely response from <a href="https://www.smartkarma.com/entities/20123" target="_blank" data-smartkarma-citation="entities:20123:1">Spotless Group Holdings Ltd (SPO AU)</a> was that the <a href="https://www.smartkarma.com/entities/12350" target="_blank" data-smartkarma-citation="entities:12350:1">Downer EDI Ltd (DOW AU)</a> bid would be described as "hostile" and "opportunistic.<blockquote>However, it is difficult to imagine that a hostile deal, done when the stock is trading at an all-time low, while the company is restructuring, will be considered anything but "Opportunistic" by Target management. So we wait for the Independent…</blockquote>

As I mentioned in Downer Raids Spotless Register, Launches Hostile Takeover Offer &amp; Rights Offer, the likely response from Spotless Group Holdings Ltd (SPO AU) was that the Downer EDI Ltd (DOW AU) bid would be described as "hostile" and "opportunistic.However, it is difficult to imagine that a hostile deal, done when the stock is trading at an all-time low, while the company is restructuring, will be considered anything but "Opportunistic" by Target management. So we wait for the Independent…

The Spotless Mind Is Known:  Responds "Hostile & Opportunistic" and Coltrane Goes Over 10%

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Thematic (Sector/Industry)

Container Shipping - Asia Import Drive Will Boost Asia-Europe-Asia Box Profits for CarriersBackground - Space shortage has disrupted the Europe-Asia container trade in February and March and European exporters face highly unusual space crunch. This is highly unusual for a ‘back-haul’ route where ship utilization rarely reaches 70%. Carriers charged an ‘emergency minimum rate’ to accept bookings and some of them have put a stop to bookings until mid-April. Boxes already on the quay are getting…

Container Shipping - Asia Import Drive Will Boost Asia-Europe-Asia Box Profits for CarriersBackground - Space shortage has disrupted the Europe-Asia container trade in February and March and European exporters face highly unusual space crunch. This is highly unusual for a ‘back-haul’ route where ship utilization rarely reaches 70%. Carriers charged an ‘emergency minimum rate’ to accept bookings and some of them have put a stop to bookings until mid-April. Boxes already on the quay are getting…

Container Shipping - Asia Import Drive Will Boost Asia-Europe-Asia Box Profits for Carriers

Dry Bulk Shipping - Why It’s Time for Dry Bulk Stocks to Take a BreatherWe have been positive on the dry bulk sector since mid-2016 but the near term valuations seem undemanding to us and are at risk of running ahead of fundamentals. The bottoming out process in 2016 and subsequent run up in 2017 has been on the back of reversal in asset values, narrowing supply-demand imbalance and expectations of supportive commodity demand. We have earlier talked about the sector under ownership and…

Dry Bulk Shipping - Why It’s Time for Dry Bulk Stocks to Take a BreatherWe have been positive on the dry bulk sector since mid-2016 but the near term valuations seem undemanding to us and are at risk of running ahead of fundamentals. The bottoming out process in 2016 and subsequent run up in 2017 has been on the back of reversal in asset values, narrowing supply-demand imbalance and expectations of supportive commodity demand. We have earlier talked about the sector under ownership and…

Dry Bulk Shipping - Why It's Time for Dry Bulk Stocks to Take a Breather

Spain

Ferrovial SA is an infrastructure operator and industrial company. The Company operates in multiple countries in a range of sectors including construction, airport, toll road, and municipal services.  Ferrovial SA also has a services division in which they provide facility management, infrastructure maintenance and upkeep, and energy and waste management services.

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Ferrovial Sa (FER SM)

Loyalty Shares in Spain: Double-Voting Rights Could Hinder Takeovers

In Spain, the companies that establish the double voting system will be less prone to takeover, such as Repsol SA (REP SM) and Telefonica SA (TEF...

Jesus Rodriguez Aguilar

Spotless Stains Offer Process, Issues Target Statement Without IE Report

Several days ago, Spotless Group Holdings Ltd (SPO AU) management had come out saying they intended to ask shareholders to reject the Downer EDI...

Travis Lundy

The Spotless Mind Is Known: Responds "Hostile & Opportunistic" and Coltrane Goes Over 10%

As I mentioned in Downer Raids Spotless Register, Launches Hostile Takeover Offer & Rights Offer, the likely response from Spotless Group...

Travis Lundy

Container Shipping - Asia Import Drive Will Boost Asia-Europe-Asia Box Profits for Carriers

Container Shipping - Asia Import Drive Will Boost Asia-Europe-Asia Box Profits for CarriersBackground - Space shortage has disrupted the...

Drewry Maritime Financial Research

Dry Bulk Shipping - Why It's Time for Dry Bulk Stocks to Take a Breather

Dry Bulk Shipping - Why It’s Time for Dry Bulk Stocks to Take a BreatherWe have been positive on the dry bulk sector since mid-2016 but the near...

Drewry Maritime Financial Research

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