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/boustead-plantations-bhd" target="_blank" data-smartkarma-citation="entities:11418:1" rel="noopener">Boustead Plantations (BPLANT MK)</a> shares have been on a rollercoaster ride. As <a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> pulls its offer, LTAT has emerged as an unlikely white knight. </li>
<li>LTAT aims to launch a general offer at RM1.55 per share, in line with KLK’s aborted MGO price. The government will backstop LTAT’s funding for the offer. </li>
<li>LTAT is vague on approvals and timing. Regulatory approvals should be a formality as LTAT is the Armed Forces pension fund. At the last close, the gross spread was 10.7%. </li>
</ul>



Boustead Plantations (BPLANT MK) shares have been on a rollercoaster ride. As Kuala Lumpur Kepong (KLK MK) pulls its offer, LTAT has emerged as an unlikely white knight. 
LTAT aims to launch a general offer at RM1.55 per share, in line with KLK’s aborted MGO price. The government will backstop LTAT’s funding for the offer. 
LTAT is vague on approvals and timing. Regulatory approvals should be a formality as LTAT is the Armed Forces pension fund. At the last close, the gross spread was 10.7%. 


Boustead Plantations (BPLANT MK): LTAT Emerges as a White Knight

<ul>
<li>
<a href="https://www.smartkarma.com/entities/boustead-plantations-bhd" target="_blank" data-smartkarma-citation="entities:11418:1" rel="noopener">Boustead Plantations (BPLANT MK)</a> shares are down 16%, resulting in proprietary day trading and intraday short selling being suspended. The transaction is mired in political debate. </li>
<li>The bull case is that <a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> continues on-market purchases and the opposition will compromise, paving the way for deal completion. Timing is the key risk. </li>
<li>The bear case is a deal break. The downside is limited as the government will need another buyer, the shares trade below the undisturbed price, and the undemanding valuation. </li>
</ul>



Boustead Plantations (BPLANT MK) shares are down 16%, resulting in proprietary day trading and intraday short selling being suspended. The transaction is mired in political debate. 
The bull case is that Kuala Lumpur Kepong (KLK MK) continues on-market purchases and the opposition will compromise, paving the way for deal completion. Timing is the key risk. 
The bear case is a deal break. The downside is limited as the government will need another buyer, the shares trade below the undisturbed price, and the undemanding valuation. 


Boustead Plantations (BPLANT MK): A Transaction Mired in Political Debate

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> will acquire 33.00% of <a href="https://www.smartkarma.com/entities/boustead-plantations-bhd" target="_blank" data-smartkarma-citation="entities:11418:1" rel="noopener">Boustead Plantations (BPLANT MK)</a>'s outstanding shares from Boustead Holdings/BHB at RM1.55 per share. The purchase is conditional on BHB shareholder approval.</li>
<li>Once the purchase becomes unconditional, the joint offerors (KLK, BHB, LTAT) will be required to launch an MGO at RM1.55 per share, a 13.1% premium to the last close. </li>
<li>The MGO will have no minimum acceptance condition. The offer is attractive and represents an all-time high. The MGO is expected to be complete in 4Q23.</li>
</ul>



Kuala Lumpur Kepong (KLK MK) will acquire 33.00% of Boustead Plantations (BPLANT MK)'s outstanding shares from Boustead Holdings/BHB at RM1.55 per share. The purchase is conditional on BHB shareholder approval.
Once the purchase becomes unconditional, the joint offerors (KLK, BHB, LTAT) will be required to launch an MGO at RM1.55 per share, a 13.1% premium to the last close. 
The MGO will have no minimum acceptance condition. The offer is attractive and represents an all-time high. The MGO is expected to be complete in 4Q23.


Boustead Plantations (BPLANT MK): Pre-Conditional MGO at RM1.55

Co-founder & Managing Director, Marketnomix 

Rajan Govil

Co-founder & Managing Director

Marketnomix 

Macroeconomics

<p>Industrial production in Malaysia grew 2.7% y-o-y in May 2016 compared to 3.0% y-o-y in April. The slowdown seen in the latest data release comes on the back of relatively stable industrial production growth seen in the January-April period. The main contribution to industrial production came from electricity production and manufacturing, while mining continued to exhibit weakness.</p><p>Electricity production grew 8.9% y-o-y in May on a 3-month moving average basis compared to 9.1% y-o-y in April…</p>

Industrial production in Malaysia grew 2.7% y-o-y in May 2016 compared to 3.0% y-o-y in April. The slowdown seen in the latest data release comes on the back of relatively stable industrial production growth seen in the January-April period. The main contribution to industrial production came from electricity production and manufacturing, while mining continued to exhibit weakness.Electricity production grew 8.9% y-o-y in May on a 3-month moving average basis compared to 9.1% y-o-y in April…

Malaysia: Bank Negara Malaysia Cuts Rates by 25 Basis Points; Data Reflects Slowing Domestic Demand

Malaysia

United Malacca Berhad is an investment holding company which cultivates oil palm and rubber.  The Company, through its subsidiaries, operates in property development.

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United Malacca (UMR MK)

Boustead Plantations (BPLANT MK): LTAT Emerges as a White Knight

On 10 November, LTAT entered into an unconditional share sale agreement with BHB to acquire its 33% BPlant stake at RM1.55 per share. This will...

Arun George

Boustead Plantations (BPLANT MK): A Transaction Mired in Political Debate

Predicting the outcome of a political debate is tricky—the price decline points to new deal hurdles. The shares are 11% below the undisturbed...

Arun George

Boustead Plantations (BPLANT MK): Pre-Conditional MGO at RM1.55

The MGO will have no minimum acceptance condition. The offer is attractive and represents an all-time high. The MGO is expected to be complete in...

Arun George

Malaysia: Bank Negara Malaysia Cuts Rates by 25 Basis Points; Data Reflects Slowing Domestic Demand

Industrial production in Malaysia grew 2.7% y-o-y in May 2016 compared to 3.0% y-o-y in April. The slowdown seen in the latest data release comes...

Rajan Govil

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