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>Including the A$0.12 permitted dividend (paid on 14 April), CapVest’s revised scheme offer is A$8.27 and the off-market takeover offer is A$8.22. The new offer addresses the capital return issue.</li>
<li>Despite today’s <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02509261_PS-2A1368239?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">interims orders</a> from the takeover panel, CapVest’s scheme transaction still has virtually no chance of getting up due to BGH's 19.99% stake.</li>
<li>BGH’s like-for-like off-market offer price of A$8.12 per share is 1.2% below CapVest’s off-market offer, suggesting that there is more life to this takeover tussle for <a href="https://www.smartkarma.com/entities/virtus-health-ltd" target="_blank" data-smartkarma-citation="entities:14776:1" rel="noopener">Virtus Health (VRT AU)</a>.</li>
</ul>


Including the A$0.12 permitted dividend (paid on 14 April), CapVest’s revised scheme offer is A$8.27 and the off-market takeover offer is A$8.22. The new offer addresses the capital return issue.
Despite today’s interims orders from the takeover panel, CapVest’s scheme transaction still has virtually no chance of getting up due to BGH's 19.99% stake.
BGH’s like-for-like off-market offer price of A$8.12 per share is 1.2% below CapVest’s off-market offer, suggesting that there is more life to this takeover tussle for Virtus Health (VRT AU).


CapVest Fights Back with Revised Offers for Virtus

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Fertility specialist <a href="https://www.smartkarma.com/entities/virtus-health-ltd" target="_blank" data-smartkarma-citation="entities:14776:1" rel="noopener">Virtus Health (VRT AU)</a> has received a revised unconditional Offer from local Aussie PE outfit BGH which just eclipses CapVest's Offer.</li>
<li>BGH's $8.00/share Offer is A$0.02/share above CapVest's takeover A$7.98/share offer - the one with a minimum acceptance condition of 50% - now the A$0.12/share dividend has gone ex.</li>
<li>CapVest still has the superior A$8.13/share Scheme Offer on the table, yet BGH's 20% stake suggests the outcome for such an Offer is no certainty. CapVest does have matching rights. </li>
</ul>


Fertility specialist Virtus Health (VRT AU) has received a revised unconditional Offer from local Aussie PE outfit BGH which just eclipses CapVest's Offer.
BGH's $8.00/share Offer is A$0.02/share above CapVest's takeover A$7.98/share offer - the one with a minimum acceptance condition of 50% - now the A$0.12/share dividend has gone ex.
CapVest still has the superior A$8.13/share Scheme Offer on the table, yet BGH's 20% stake suggests the outcome for such an Offer is no certainty. CapVest does have matching rights. 


<ul>
<li>BGH announced an unconditional off-market takeover offer at A$8.00 cash per share along with intention for on-market purchases equal to, below, or higher than the offer price.</li>
<li>CapVest’s scheme transaction while superior has virtually no chance of getting up. CapVest’s off-market transaction is less appealing due to the uncertain outcome of the ATO ruling.</li>
<li>The last close price of A$8.15 is higher than both BGH and CapVest’s off-market offers which suggest both would need to raise their bid.  </li>
</ul>


BGH announced an unconditional off-market takeover offer at A$8.00 cash per share along with intention for on-market purchases equal to, below, or higher than the offer price.
CapVest’s scheme transaction while superior has virtually no chance of getting up. CapVest’s off-market transaction is less appealing due to the uncertain outcome of the ATO ruling.
The last close price of A$8.15 is higher than both BGH and CapVest’s off-market offers which suggest both would need to raise their bid.  


BGH Returns with an A$8.00 Off-Market Takeover Bid for Virtus

<ul>
<li>Buying 13.5% below Morrison &amp; Co's Offer terms last week for Aussie broadband player <a href="https://www.smartkarma.com/entities/uniti-group-ltd" target="_blank" data-smartkarma-citation="entities:29042:1" rel="noopener">Uniti Group Ltd (UWL AU)</a> was the right call as a new (indicative, non-binding) proposal emerges.</li>
<li>
Macquarie Asset Management's Real Assets division and Public Sector Pension Investment Board are offering to acquire Uniti for $5.00/share, via a Scheme of Arrangement, an 11% premium to Morrison's tilt. </li>
<li>The Board of Uniti is currently considering the new proposal.  Morrison's four-week exclusivity period kicked off last Friday. </li>
</ul>


Buying 13.5% below Morrison &amp; Co's Offer terms last week for Aussie broadband player Uniti Group Ltd (UWL AU) was the right call as a new (indicative, non-binding) proposal emerges.

Macquarie Asset Management's Real Assets division and Public Sector Pension Investment Board are offering to acquire Uniti for $5.00/share, via a Scheme of Arrangement, an 11% premium to Morrison's tilt. 
The Board of Uniti is currently considering the new proposal.  Morrison's four-week exclusivity period kicked off last Friday. 


Uniti (UWL): Competitive Bidding Situation As Macquarie/PSP Proposal Emerges

Yashili International Holdings / Event-Driven

<ul>
<li>We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore and the US (Chinese ADRs only). </li>
<li>This week, the highest gross spreads are <a href="https://www.smartkarma.com/entities/yashili-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3397:1" rel="noopener">Yashili International Holdings (1230 HK)</a>, <a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a>, <a href="https://www.smartkarma.com/entities/51-job-inc-adr" target="_blank" data-smartkarma-citation="entities:532:1" rel="noopener">51 Job Inc Adr (JOBS US)</a>, <a href="https://www.smartkarma.com/entities/uniti-group-ltd" target="_blank" data-smartkarma-citation="entities:29042:1" rel="noopener">Uniti Group Ltd (UWL AU)</a>
</li>
<li>The lowest gross spreads are <a href="https://www.smartkarma.com/entities/cimic-group-ltd" target="_blank" data-smartkarma-citation="entities:20030:1" rel="noopener">CIMIC Group Ltd (CIM AU)</a>, <a href="https://www.smartkarma.com/entities/virtus-health-ltd" target="_blank" data-smartkarma-citation="entities:14776:1" rel="noopener">Virtus Health (VRT AU)</a>, <a href="https://www.smartkarma.com/entities/china-logistics-property-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:22799:1" rel="noopener">China Logistics Property Holdings (1589 HK)</a>, <a href="https://www.smartkarma.com/entities/z-energy-ltd" target="_blank" data-smartkarma-citation="entities:9838:1" rel="noopener">Z Energy Ltd (ZEL NZ)</a>, <a href="https://www.smartkarma.com/entities/singapore-press-holdings-limited" target="_blank" data-smartkarma-citation="entities:9952:1" rel="noopener">Singapore Press Holdings (SPH SP)</a> </li>
</ul>


We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore and the US (Chinese ADRs only). 
This week, the highest gross spreads are Yashili International Holdings (1230 HK), Razer Inc (1337 HK), 51 Job Inc Adr (JOBS US), Uniti Group Ltd (UWL AU)

The lowest gross spreads are CIMIC Group Ltd (CIM AU), Virtus Health (VRT AU), China Logistics Property Holdings (1589 HK), Z Energy Ltd (ZEL NZ), Singapore Press Holdings (SPH SP) 


Merger Arb Mondays - Yashili, Razer, 51Job, Uniti, Link, Sezzle, Guodian

Australia

Virtus Health Limited provides health care services. The Company offers clinical, scientific, diagnostic services, and day surgery for reproductive and fertility health care. Virtus Health serves patients and operates reproductive health and fertility clinics throughout eastern Australia.

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Virtus Health (VRT AU)

CapVest Fights Back with Revised Offers for Virtus

Including the permitted dividend, CapVest’s revised scheme is A$8.27 and the off-market takeover is A$8.22. There is more life to this takeover...

Arun George

Virtus: BGH's Less Than Friendly Offer

If you're in, hold on for any possible upward revision. If not in, get involved around here, or on any pullback. I think these two parties will...

David Blennerhassett

BGH Returns with an A$8.00 Off-Market Takeover Bid for Virtus

CapVest’s scheme offer while superior to BGH's off-market offer has virtually no chance of getting up. CapVest’s off-market offer is less appealing...

Arun George

Uniti (UWL): Competitive Bidding Situation As Macquarie/PSP Proposal Emerges

Trading ~7% below MAM/PSP's indicative terms - and 4% above Morrison's proposal. I'd still be a buyer of Uniti around here.

David Blennerhassett

Merger Arb Mondays - Yashili, Razer, 51Job, Uniti, Link, Sezzle, Guodian

This week, the highest gross spreads are Yashili (41.2%), Razer (19.2%), 51 Job (16.0%), Uniti Group (9.8%), Link (8.6%), Sezzle (7.0%), Guodian...

Arun George

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