Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/altium-ltd" target="_blank" data-smartkarma-citation="entities:18626:1" rel="noopener">Altium Ltd (ALU AU)</a>, a global software company, <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02382370-2A1302312?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">confirmed and subsequently rejected</a> a non-binding proposal from <a href="https://www.smartkarma.com/entities/autodesk-inc" target="_blank" data-smartkarma-citation="entities:13211:1" rel="noopener">Autodesk Inc (ADSK US)</a>.
The A$38.50/share cash offer by way of a Scheme, was a 41.5% premium to last close and a 47.4% premium to the one-month VWAP.
The indicative proposal was subject to a number of conditions including due diligence, Altium board support, the receipt of all applicable regulatory approvals, and no material adverse changes.
Concerning the offer, Altium said:
<blockquote>
[Altium] considers the Proposal significantly undervalues Altium's prospects and therefore rejects the Proposal at the current price. Altium has a unique position in the electronics  ecosystem and in the past unsolicited acquisition interest has developed from partnership dialogues with others in the ecosystem.
</blockquote>
Shares closed today at $36.78, up more than 35%.
More below the fold.

Altium Ltd (ALU AU), a global software company, confirmed and subsequently rejected a non-binding proposal from Autodesk Inc (ADSK US).
The A$38.50/share cash offer by way of a Scheme, was a 41.5% premium to last close and a 47.4% premium to the one-month VWAP.
The indicative proposal was subject to a number of conditions including due diligence, Altium board support, the receipt of all applicable regulatory approvals, and no material adverse changes.
Concerning the offer, Altium said:

[Altium] considers the Proposal significantly undervalues Altium's prospects and therefore rejects the Proposal at the current price. Altium has a unique position in the electronics  ecosystem and in the past unsolicited acquisition interest has developed from partnership dialogues with others in the ecosystem.

Shares closed today at $36.78, up more than 35%.
More below the fold.

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Thematic (Sector/Industry)

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices. Companies mentioned this week:<a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/jbs-sa" target="_blank" data-smartkarma-citation="entities:24455:1" rel="noopener">JBS SA (JBSS3 BZ)</a>, <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a>

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices. Companies mentioned this week:Alibaba Group (9988 HK), TSMC (2330 TT), JBS SA (JBSS3 BZ), Prosus (PRX NA)

Global Emerging Markets Weekly: 4 June 2021

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.  Companies mentioned this week:<a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a>, <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.  Companies mentioned this week:Meituan (3690 HK), Xiaomi Corp (1810 HK), Naspers (NPN SJ), Prosus (PRX NA), Tencent (700 HK), Samsung Electronics (005930 KS), SK Hynix (000660 KS)

Global Emerging Markets Weekly: 14 May 2021

<div>
Back in September 2019, the spinoff/listing of <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a> was predicated on the "unsustainable size" of <a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a> as a % of the JSE Shareholder Weighted Index (SWIX) - and to unlock value for shareholders.
Yesterday, Naspers and Prosus <a href="https://www.share-exchange-offer.com/wp-content/uploads/2021/05/naspers-announcement.pdf" target="_blank" rel="noopener">announced</a> a Proposed Voluntary Share Exchange Offer to Naspers Shareholders, which again addresses the SWIX situation, and if successful till increase Prosus' free float to 42.8%, with 59.7% of the economic interest of Prosus owned by that free float (and 40.3% owned by the free float of Naspers).
The unwieldy deal offers 45.4% of Naspers issued shares the option of converting shares into Prosus at a ratio of 2.27443x.
Assuming all the pieces neatly fit together, Naspers will own 57.2% of Prosus, and Prosus 49.5% of Naspers. 
This resulting circularity is reminiscent of the <a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a> / <a href="https://www.smartkarma.com/entities/jardine-strategic-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15081:1" rel="noopener">Jardine Strategic Holdings (JS SP)</a> cross-holding, which was collapsed earlier this year.
This time, the holders of Naspers super-voting shares are the "Keswicks". 
</div>


Back in September 2019, the spinoff/listing of Prosus (PRX NA) was predicated on the "unsustainable size" of Naspers (NPN SJ) as a % of the JSE Shareholder Weighted Index (SWIX) - and to unlock value for shareholders.
Yesterday, Naspers and Prosus announced a Proposed Voluntary Share Exchange Offer to Naspers Shareholders, which again addresses the SWIX situation, and if successful till increase Prosus' free float to 42.8%, with 59.7% of the economic interest of Prosus owned by that free float (and 40.3% owned by the free float of Naspers).
The unwieldy deal offers 45.4% of Naspers issued shares the option of converting shares into Prosus at a ratio of 2.27443x.
Assuming all the pieces neatly fit together, Naspers will own 57.2% of Prosus, and Prosus 49.5% of Naspers. 
This resulting circularity is reminiscent of the Jardine Matheson Holdings (JM SP) / Jardine Strategic Holdings (JS SP) cross-holding, which was collapsed earlier this year.
This time, the holders of Naspers super-voting shares are the "Keswicks". 


Travis Lundy

Today, <a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a> and <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a> surprised most of us by announcing a Proposed Voluntary Share Exchange Offer to Naspers Shareholders. The deal involves offering Naspers shareholders the chance to convert their Naspers shares to Prosus shares at a premium to the last trade and recent value, and offer "value" to Prosus shareholders via accretion.The resulting complexity is, however, less attractive. The initial response was to see the Naspers-Prosus spread tighten. The next response is to widen back out a bit. The coming days will tell you what the real response is. The response of the Prosus:NAV ratio is the more informative of the two. Eventually, the model accretion plus buyback accretion at Prosus should win shareholders over, and domestic Naspers shareholders should find the structure slightly attractive, but the call made clear that despite executives having spent a LOT of time on this, they clearly hadn't thought everything through.

Today, Naspers (NPN SJ) and Prosus (PRX NA) surprised most of us by announcing a Proposed Voluntary Share Exchange Offer to Naspers Shareholders. The deal involves offering Naspers shareholders the chance to convert their Naspers shares to Prosus shares at a premium to the last trade and recent value, and offer "value" to Prosus shareholders via accretion.The resulting complexity is, however, less attractive. The initial response was to see the Naspers-Prosus spread tighten. The next response is to widen back out a bit. The coming days will tell you what the real response is. The response of the Prosus:NAV ratio is the more informative of the two. Eventually, the model accretion plus buyback accretion at Prosus should win shareholders over, and domestic Naspers shareholders should find the structure slightly attractive, but the call made clear that despite executives having spent a LOT of time on this, they clearly hadn't thought everything through. 

Naspers & Prosus Exchange Offer - Accretion Vs Complexity

China

Prosus N.V. provides internet based services. The Company focuses on investments in internet, digital media, e-commerce retailing, and consumer internet companies. Prosus serves customers worldwide.

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Prosus NV (PRX NA)

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David Blennerhassett

Global Emerging Markets Weekly: 4 June 2021

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity...

Wium Malan, CFA

Global Emerging Markets Weekly: 14 May 2021

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity...

Wium Malan, CFA

Naspers/Prosus: South African "Keswicks"

The overall construct is accretive, but is a more complex accretion and complexity has its costs in terms of a discount rate. And circularities, as...

David Blennerhassett

Naspers & Prosus Exchange Offer - Accretion Vs Complexity

Naspers and Prosus propose an Exchange Offer for 45.4% of Naspers to receive Prosus shares. Prosus will own 49.5% of Naspers. There is accretion,...

Travis Lundy

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