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

Qantm Intellectual Property / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/qantm-intellectual-property" target="_blank" data-smartkarma-citation="entities:24317:1" rel="noopener">Qantm Intellectual Property (QIP AU)</a>'s non-binding proposal from <a href="https://www.smartkarma.com/entities/iph-ltd" target="_blank" data-smartkarma-citation="entities:2495:1" rel="noopener">IPH Ltd (IPH AU)</a> is at A$0.11 cash + 0.291 IPH shares per QIP share, a 4.5% premium to Adamantem’s A$1.817 offer.</li>
<li>Since announcing the Adamantem non-binding proposal on 14 March, the IPH offer has been 4.3% higher than the Adamantem offer on average. </li>
<li>The IPH proposal also requires approval from the ACCC and NZCC. The presence of two bidders increases the probability of a binding proposal (with a bump). </li>
</ul>



Qantm Intellectual Property (QIP AU)'s non-binding proposal from IPH Ltd (IPH AU) is at A$0.11 cash + 0.291 IPH shares per QIP share, a 4.5% premium to Adamantem’s A$1.817 offer.
Since announcing the Adamantem non-binding proposal on 14 March, the IPH offer has been 4.3% higher than the Adamantem offer on average. 
The IPH proposal also requires approval from the ACCC and NZCC. The presence of two bidders increases the probability of a binding proposal (with a bump). 


Qantm IP (QIP AU): IPH Enters the Fray with a Competing Offer

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>It always seemed like a question of when, not if, <a href="https://www.smartkarma.com/entities/iph-ltd" target="_blank" data-smartkarma-citation="entities:2495:1" rel="noopener">IPH (IPH AU)</a> would make an Offer for <a href="https://www.smartkarma.com/entities/qantm-intellectual-property" target="_blank" data-smartkarma-citation="entities:24317:1" rel="noopener">QANTM (QIP AU)</a>. IPH previously approached QANTM in 2018, but was spurned.</li>
<li>Capitalising on ongoing extensions to Adamantem's exclusivity, as it relates to its all-cash A$1.817/share Offer by way of a Scheme, IPH has now tabled an all-scrip, plus A$0.11/share dividend <a href="https://announcements.asx.com.au/asxpdf/20240508/pdf/063c31fpygftp0.pdf" target="_blank" rel="noopener">NBIO</a>.</li>
<li>IPH's implied Scheme value of A$1.90/share is a premium to Adamantem's proposal. The catch: apart from terms being indicative, IPH's Offer requires ACCC and NZCC clearance.</li>
</ul>


It always seemed like a question of when, not if, IPH (IPH AU) would make an Offer for QANTM (QIP AU). IPH previously approached QANTM in 2018, but was spurned.
Capitalising on ongoing extensions to Adamantem's exclusivity, as it relates to its all-cash A$1.817/share Offer by way of a Scheme, IPH has now tabled an all-scrip, plus A$0.11/share dividend NBIO.
IPH's implied Scheme value of A$1.90/share is a premium to Adamantem's proposal. The catch: apart from terms being indicative, IPH's Offer requires ACCC and NZCC clearance.


QANTM (QIP AU): IPH Wades In As Adamantem Tarries

China Traditional Chinese Medicine / Event-Driven

<ul>
<li>We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.</li>
<li>Highest spreads: <a href="https://www.smartkarma.com/entities/yichang-hec-changjiang-pharmaceutical" target="_blank" data-smartkarma-citation="entities:21040:1" rel="noopener">Yichang HEC Changjiang Pharma (1558 HK)</a>, <a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">China Traditional Chinese Medicine (570 HK)</a>, <a href="https://www.smartkarma.com/entities/asia-cement-china-holdings" target="_blank" data-smartkarma-citation="entities:3374:1" rel="noopener">Asia Cement China (743 HK)</a>, <a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection Group (1381 HK)</a>, <a href="https://www.smartkarma.com/entities/greatview-aseptic-packaging" target="_blank" data-smartkarma-citation="entities:10802:1" rel="noopener">Greatview Aseptic Packaging (468 HK)</a>.
</li>
<li>Lowest spreads: <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a>, <a href="https://www.smartkarma.com/entities/alumina-ltd" target="_blank" data-smartkarma-citation="entities:939:1" rel="noopener">Alumina Ltd (AWC AU)</a>, <a href="https://www.smartkarma.com/entities/fancl-corp" target="_blank" data-smartkarma-citation="entities:15862:1" rel="noopener">Fancl Corp (4921 JP)</a>, <a href="https://www.smartkarma.com/entities/mimasu-semiconductor-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:5531:1" rel="noopener">Mimasu Semiconductor Industry (8155 JP)</a>, <a href="https://www.smartkarma.com/entities/infocom-corp" target="_blank" data-smartkarma-citation="entities:8412:1" rel="noopener">Infocom Corp (4348 JP)</a>, Hollysys.
</li>
</ul>


We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Yichang HEC Changjiang Pharma (1558 HK), China Traditional Chinese Medicine (570 HK), Asia Cement China (743 HK), Canvest Environmental Protection Group (1381 HK), Greatview Aseptic Packaging (468 HK).

Lowest spreads: Tatsuta Electric Wire &amp; Cable (5809 JP), Alumina Ltd (AWC AU), Fancl Corp (4921 JP), Mimasu Semiconductor Industry (8155 JP), Infocom Corp (4348 JP), Hollysys.



Merger Arb Mondays (22 Jul) - China TCM, GA Pack, Huafa, Samson, CPMC, Fancl, Tatsuta, Capitol

<ul>
<li>On the 27th Feb, <a href="https://www.smartkarma.com/entities/qantm-intellectual-property" target="_blank" data-smartkarma-citation="entities:24317:1" rel="noopener">Qantm Intellectual Property (QIP AU)</a> announced a NBIO from UK-based Rouse International; but opted not to disclose price, DD, or even if this was a cash/scrip Offer.</li>
<li>Then on the 12th March, Qantm announced a NBIO from Adamantem Capital, by way of a Scheme, of $1.817/share in cash or with a scrip election of up to 50%</li>
<li>Qantm secured a trading halt yesterday morning, presumably to flesh out the best Offer for shareholders. Will <a href="https://www.smartkarma.com/entities/iph-ltd" target="_blank" data-smartkarma-citation="entities:2495:1" rel="noopener">IPH Ltd (IPH AU)</a> throw its hat into the ring, again?</li>
</ul>


On the 27th Feb, Qantm Intellectual Property (QIP AU) announced a NBIO from UK-based Rouse International; but opted not to disclose price, DD, or even if this was a cash/scrip Offer.
Then on the 12th March, Qantm announced a NBIO from Adamantem Capital, by way of a Scheme, of $1.817/share in cash or with a scrip election of up to 50%
Qantm secured a trading halt yesterday morning, presumably to flesh out the best Offer for shareholders. Will IPH Ltd (IPH AU) throw its hat into the ring, again?


Qantm Weighs Rouse's And Adamantem's Proposals

<ul>
<li>The <a href="https://www.afr.com/street-talk/adamantem-takes-second-swing-at-qantm-ip-offer-pegged-at-58pc-premium-20240311-p5fbk1" target="_blank" rel="noopener">AFR reports</a> that Adamantem Capital had submitted a non-binding indicative offer for <a href="https://www.smartkarma.com/entities/qantm-intellectual-property" target="_blank" data-smartkarma-citation="entities:24317:1" rel="noopener">Qantm Intellectual Property (QIP AU)</a> at A$1.817 per share, a 30.7% premium to the last close. </li>
<li>In response to a <a href="https://www.afr.com/street-talk/qantm-intellectual-property-snares-bid-ma-moelis-on-scene-20240226-p5f7wp" target="_blank" rel="noopener">previous AFR article</a>, Qantm disclosed a non-binding indicative offer from Rouse but declined to reveal a price or the structure (cash or scrip). </li>
<li>AFR reports that other potential interested parties, such as Quadrant Private Equity and IPH, are also in the running. Adamantem’s attractive offer sets a high bar for other potential bidders. </li>
</ul>


The AFR reports that Adamantem Capital had submitted a non-binding indicative offer for Qantm Intellectual Property (QIP AU) at A$1.817 per share, a 30.7% premium to the last close. 
In response to a previous AFR article, Qantm disclosed a non-binding indicative offer from Rouse but declined to reveal a price or the structure (cash or scrip). 
AFR reports that other potential interested parties, such as Quadrant Private Equity and IPH, are also in the running. Adamantem’s attractive offer sets a high bar for other potential bidders. 


Qantm IP (QIP AU): Adamantem’s Rumoured Non-Binding Proposal at A$1.817

Australia

Countplus Ltd. offers accounting and other services.  Through subsidiaries, the Company offers accounting, financial planning, lending, legal, tax, corporate advisory, and payroll management services.  Countplus franchises some of its locations.

HiTech Group Australia Limited provides recruitment and consulting services on a contract and permanent basis to the IT and telecommunications industries of Australia.  The Company provides recruitment for executive management, PC support, e-commerce, IT specialists, technical writing and various positions in the IT & T industry.

Ashley Services Group Ltd is an integrated provider of training and labour hire in Australia.

Energy Action Ltd operates an energy procurement platform which allows energy suppliers to competitively bid against one another to supply energy.  The Company has a suite of products and services that complement the Australian Energy Exchange and will allow companies to monitor and manage energy usage and carbon emissions.

YPB Group Ltd manufactures covert markers and additives for consumers who wish to mark their products in order to build customer awareness and loyalty, identify and remove fake products, and measure results over time.

McMillan Shakespeare Limited provides salary packaging services.  The Company also offers services like procurement of motor vehicles, insurance, finance and fuel and service maintenance programs.

Namoi Cotton Co-operative Limited provides cotton ginning and marketing services to Australian cotton growers.  The Company operates gin facilities in New South Wales and Queensland along with warehousing and distribution facilities.  The Company markets and distributes its cotton domestically and internationally.

Fluence Corporation Limited provides water treatment systems. The Company offers filters pre-treatment, energy-recovery devices, clean-in-place systems, packaged plants, and aeration equipment, as well as project financing services. Fluence serves small communities, schools, malls, resorts, hotels, golf courses, construction sites, and commercial centers worldwide.

Ariadne Australia Limited operates a car parking facility and holds a portfolio of development and residential development project properties in Queensland, which include apartment complexes and housing projects. The Company also holds an equity securities portfolio and provides financial services.

IPH Limited is an intellectual property services firm. The Company offers a wide range of services for the protection, commercialisation, enforcement, and management of intellectual property. IPH provides these services across Australia, New Zealand, Papua New Guinea, the Pacific Islands, and Asia.

Will Group Inc. provides employee placement and staffing services. The Company offers outsourcing services for sales, call center, and manufacturing positions.

PASCO CORPORATION is a surveying company specializing in aerial photographs. The Company computerizes surveyed data and conducts information system engineering.

S-Pool, Inc. provides outsourcing services including providing temporary staffing and performing contract work.  The Company also conducts market research and plans sales promotion for mobile and consumer maker companies.

EJ Holdings Inc. is a holding company wholly owning Eight Consultants Co. Ltd and Japan Engineering Consultants Co., Ltd. The Company offers construction consulting services primarily in the Chugoku and Kansai regions. EJ Holdings also manages its subsidiaries.

SaraminHR Co.,Ltd. operates a website that offers a wide range of services. The Company offers an online job search, consulting, IT outsourcing, office lease and online information providing services.

Careerlink Co.,Ltd. provides placement and staffing services. The company matches job seekers and corporations for administrative, call center, and manufacturing positions.

SPACE CO., LTD. constructs and remodels institutional and commercial facilities. The Company specializes in interior design and display work for retailers such as department stores, grocery stores, and specialty stores.  Space operates in the Chubu, Kanto, and Kansai regions of Japan.

SHL-JAPAN Ltd. makes aptitude test products.  The Company also provides training and consulting services for aptitude test data.

GAKUJO CO., LTD provides employment information for new college graduates and for people seeking career changes.  The Company also provides consulting services and plans and markets employment advertisements.

TANABE MANAGEMENT CONSULTING CO., LTD. is a management consulting firm. The Company provides seminars and training to its business clients.  Tanabe Management Consulting operates membership management clubs, the Eagle Club, holds study meetings, and issues publications to the club members.  The Company also sells notebooks for business use.

QANTM Intellectual Property Limited operates in the commercial services industry. The Company offers services for patent, design, trademark procurement, and other related intellectual properties throughout Australia.

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Qantm Intellectual Property (QIP AU)

Qantm IP (QIP AU): IPH Enters the Fray with a Competing Offer

The presence of two bidders increases the probability of a binding proposal (with a bump). At the last close, the gross spread to the IPH offer is...

Arun George

QANTM (QIP AU): IPH Wades In As Adamantem Tarries

Trading at a gross spread of 1.7% to Adamantem's terms, and 6.3% to IPH's. Both Offers are indicative. I'd be picking up shares around here. I...

David Blennerhassett

Merger Arb Mondays (22 Jul) - China TCM, GA Pack, Huafa, Samson, CPMC, Fancl, Tatsuta, Capitol

This week, the highest gross spreads are HEC Pharma (122.5%), China TCM (31.8%), Asia Cement (12.6%), Canvest (11.1%), GA Pack (10.9%), Malaysia...

Arun George

Qantm Weighs Rouse's And Adamantem's Proposals

Qantm is in play. I can see the board supporting Adamantem's proposal, if firmed. I can also see Rouse dropping out. Plus you have IPH watching...

David Blennerhassett

Qantm IP (QIP AU): Adamantem’s Rumoured Non-Binding Proposal at A$1.817

Rouse is conducting due diligence, but AFR reports that other potential interested parties, such as Quadrant and IPH, are also in the running....

Arun George

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