Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> has agreed to acquire <a href="https://www.smartkarma.com/entities/sezzle-inc" target="_blank" data-smartkarma-citation="entities:30969:1" rel="noopener">Sezzle Inc (SZL AU)</a> in an all-scrip deal where Sezzle shareholders will receive 0.98 shares of Z1P per shares of SZL.</li>
<li>At last closing prices, the deal values <a href="https://www.smartkarma.com/entities/sezzle-inc" target="_blank" data-smartkarma-citation="entities:30969:1" rel="noopener">Sezzle Inc (SZL AU)</a> at A$2.1658/share, a 21.7% premium to the last close and a 31.7% premium to 30 day VWAP.</li>
<li>
<a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> has also announced a A$148.7m fully underwritten institutional placement and a A$50m non-underwritten share placement plan to strengthen its balance sheet.</li>
</ul>



Zip Co Ltd (Z1P AU) has agreed to acquire Sezzle Inc (SZL AU) in an all-scrip deal where Sezzle shareholders will receive 0.98 shares of Z1P per shares of SZL.
At last closing prices, the deal values Sezzle Inc (SZL AU) at A$2.1658/share, a 21.7% premium to the last close and a 31.7% premium to 30 day VWAP.

Zip Co Ltd (Z1P AU) has also announced a A$148.7m fully underwritten institutional placement and a A$50m non-underwritten share placement plan to strengthen its balance sheet.


Zip to Acquire Sezzle: Buy Now, Pray Later?

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Zee Entertainment Enterprises / Equity Bottom-Up

ZEE announced completion of the due diligence and final contours of the deal. SONY and ZEE's promoters will hold 51%/4% in the merged entity, while the rest will be held by the public. There will be a fresh capital infusion of INR113b (USD1.6b) by Sony, including the INR11b as non-compete fee to ZEE's promoters, which will be utilized to increase its stake to 4% from 2% in the merged entity. The merged entity is valued ~17x FY20 EV/EBITDA and 22x P/E.<div class="content-highlight">Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</div>

ZEE announced completion of the due diligence and final contours of the deal. SONY and ZEE's promoters will hold 51%/4% in the merged entity, while the rest will be held by the public. There will be a fresh capital infusion of INR113b (USD1.6b) by Sony, including the INR11b as non-compete fee to ZEE's promoters, which will be utilized to increase its stake to 4% from 2% in the merged entity. The merged entity is valued ~17x FY20 EV/EBITDA and 22x P/E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZEE - Sony merger 
- Turning into a dominant media player

Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

In past two years, Indian market has witnessed many fights between promoters and shareholders, of which one of the most famous is Essel group companies. We have already highlighted issues with <a href="https://www.smartkarma.com/entities/zee-entertainment-enterprises" target="_blank" data-smartkarma-citation="entities:19466:1" rel="noopener">Zee Entertainment Enterprises (Z IN)</a> in our insight <a href="https://www.smartkarma.com/insights/zee-sony-merger-a-cloudy-sky" target="_blank" data-smartkarma-citation="insights:58128" rel="noopener">ZEE-Sony Merger: A Cloudy Sky?</a>. Another erstwhile Essel group company <a href="https://www.smartkarma.com/entities/dish-tv-india-ltd" target="_blank" data-smartkarma-citation="entities:7710:1" rel="noopener">Dish Tv India (DITV IN)</a> in which one of the shareholder i.e. <a href="https://www.smartkarma.com/entities/yes-bank-ltd" target="_blank" data-smartkarma-citation="entities:767:1" rel="noopener">Yes Bank (YES IN)</a> who owns ~24.8% stake is taking management head-on for creating mess in the financial statement and sought conducting extra-ordinary general meeting (EGM) for the removal of chairman &amp; managing director Mr. Jawahar Lal Goel, relative of promoter Mr. Subash Chandra. However, later on October 13, 2021 board of Dish TV has denied request of Yes bank for conducting EGM and called the action of Yes bank as violation of various acts.In this insight we are providing analysis of Dish TV F21 annual report and highlighting the issues in the financial statements.

In past two years, Indian market has witnessed many fights between promoters and shareholders, of which one of the most famous is Essel group companies. We have already highlighted issues with Zee Entertainment Enterprises (Z IN) in our insight ZEE-Sony Merger: A Cloudy Sky?. Another erstwhile Essel group company Dish Tv India (DITV IN) in which one of the shareholder i.e. Yes Bank (YES IN) who owns ~24.8% stake is taking management head-on for creating mess in the financial statement and sought conducting extra-ordinary general meeting (EGM) for the removal of chairman &amp; managing director Mr. Jawahar Lal Goel, relative of promoter Mr. Subash Chandra. However, later on October 13, 2021 board of Dish TV has denied request of Yes bank for conducting EGM and called the action of Yes bank as violation of various acts.In this insight we are providing analysis of Dish TV F21 annual report and highlighting the issues in the financial statements.

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Astro Malaysia Holdings / Equity Bottom-Up

Astro's high-frequency operational data still looks very positive with a high TV viewership share (72%), 3.2 hours average time spent/day that is ahead of 2.16 hours of the FTA, increased MAU by 17% YoY, on-demand shows streamed has tripled to MYR 233 million. 
The big announcement is that Astro subscribers can soon access <a href="https://www.smartkarma.com/entities/netflix-inc" target="_blank" data-smartkarma-citation="entities:20451:1" rel="noopener">Netflix Inc (NFLX US)</a> through its Ultra and Ulti boxes which means investors should not worry that Astro subscribers will be reduced because they want to move to Netflix. Although it is more of a defensive strategy, there is a potential for a small upside as some existing Netflix subscribers in Malaysia may want to subscribe to Astro as they get bangs for their bucks. 
Post 50% share price increase, the company is still trading below its pre-COVID-19 level although the business climate has been stable and Netflix is not exactly a competitor to be feared anymore as it has become Astro's allies in Malaysia. The company also generates just shy of 20% FCF yield. There is no reason not to like <a href="https://www.smartkarma.com/entities/astro-malaysia-holdings-bhd" target="_blank" data-smartkarma-citation="entities:1143:1" rel="noopener">Astro Malaysia Holdings (ASTRO MK)</a>.

Astro's high-frequency operational data still looks very positive with a high TV viewership share (72%), 3.2 hours average time spent/day that is ahead of 2.16 hours of the FTA, increased MAU by 17% YoY, on-demand shows streamed has tripled to MYR 233 million. 
The big announcement is that Astro subscribers can soon access Netflix Inc (NFLX US) through its Ultra and Ulti boxes which means investors should not worry that Astro subscribers will be reduced because they want to move to Netflix. Although it is more of a defensive strategy, there is a potential for a small upside as some existing Netflix subscribers in Malaysia may want to subscribe to Astro as they get bangs for their bucks. 
Post 50% share price increase, the company is still trading below its pre-COVID-19 level although the business climate has been stable and Netflix is not exactly a competitor to be feared anymore as it has become Astro's allies in Malaysia. The company also generates just shy of 20% FCF yield. There is no reason not to like Astro Malaysia Holdings (ASTRO MK). 

Astro (ASTRO): Netflix Is Included Soon and High FCF Yield.

India

Zee Entertainment Enterprises Limited operates as an entertainment company. The Company produces and develops films, serials, game shows, and children's programs. Zee also produces and exports entertainment software for transmission on its ZEE TV channel. Zee Entertainment Enterprises serves customers in India.

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Zee Entertainment Enterprises (Z IN)

Zip to Acquire Sezzle: Buy Now, Pray Later?

Zip is looking to acquire Sezzle in an all-stock deal that values Sezzle at A$491m, a 21.7% premium to the last close. Zip could migrate higher to...

Brian Freitas

ZEE - Sony merger - Turning into a dominant media player

ZEE announced completion of the due diligence and final contours of the deal. SONY and ZEE's promoters will hold 51%/4% in the merged entity,...

Motilal Oswal

ZEE - Sony merger - Turning into a dominant media player

ZEE announced completion of the due diligence and final contours of the deal. SONY and ZEE's promoters will hold 51%/4% in the merged entity,...

Motilal Oswal

Dish TV: What Lies Underneath

In this insight we are providing analysis of F21 annual report and highlighting the issues in the financial statements of Dish TV, erstwhile Essel...

Nitin Mangal

Astro (ASTRO): Netflix Is Included Soon and High FCF Yield.

After 50% increase, Astro is still trading below its pre-COVID-19 level although the business climate has been stable and Netflix has become...

Henry Soediarko

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52-week Range

Market Cap (USDm)

P/E

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Zip to Acquire Sezzle: Buy Now, Pray Later?

Zip is looking to acquire Sezzle in an all-stock deal that values Sezzle at A$491m, a 21.7% premium to the last close. Zip could migrate higher to...

Brian Freitas

ZEE - Sony merger - Turning into a dominant media player

ZEE announced completion of the due diligence and final contours of the deal. SONY and ZEE&#x27;s promoters will hold 51%/4% in the merged entity,...

Motilal Oswal

ZEE - Sony merger - Turning into a dominant media player

ZEE announced completion of the due diligence and final contours of the deal. SONY and ZEE&#x27;s promoters will hold 51%/4% in the merged entity,...

Motilal Oswal

Dish TV: What Lies Underneath

In this insight we are providing analysis of F21 annual report and highlighting the issues in the financial statements of Dish TV, erstwhile Essel...

Nitin Mangal

Astro (ASTRO): Netflix Is Included Soon and High FCF Yield.

After 50% increase, Astro is still trading below its pre-COVID-19 level although the business climate has been stable and Netflix has become...

Henry Soediarko

ZEE announced completion of the due diligence and final contours of the deal. SONY and ZEE's promoters will hold 51%/4% in the merged entity,...

ZEE announced completion of the due diligence and final contours of the deal. SONY and ZEE's promoters will hold 51%/4% in the merged entity,...