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Smartkarma Daily Briefs

Dec 28
0

Daily Brief Financials: Nuvama Wealth Management, JPY and more

By | Daily Briefs, Financials

In today’s briefing:

  • Nuvama: Stellar Start as an Independent Listed Entity
  • Part Two: JGB Yields Spike Cause Yen Mayhem

Nuvama: Stellar Start as an Independent Listed Entity

By Ankit Agrawal, CFA

  • Nuvama reported its first quarterly result since its listing, as a demerged entity. It reported strong growth across all its business segments.
  • Wealth management revenues grew 30% YoY, adjusted for one-off accounting impact. Cyclical recovery in the capital markets segment further helped.
  • Nuvama has potential to scale up rapidly and grow its profitability exponentially led by growth and operating leverage. At the current valuation, an investment in Nuvama has potential to triple.

Part Two: JGB Yields Spike Cause Yen Mayhem

By Untying The Gordian Knot

  • On December 6, 2023, Deputy Gov. Ryozo Himino and other policy board members signalled increasing optimism on price and wage increases.
  • Himino said at a press conference following a meeting on Wednesday that exiting the negative rate policy would have relatively little impact on Japan’s economy.
  • “We will carefully assess the situation and consider the timing and procedure of how to exit” negative rates. 

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Dec 28
0

Daily Brief Consumer: Shenzhou Intl Group Holdings, TSE Tokyo Price Index TOPIX and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Shenzhou Intl (2313 HK):  Nike Guidance Cut Presents An Opportunity
  • Companies Keen to Reduce Administrative Costs, but Reluctant to Provide Convenience to Shareholders

Shenzhou Intl (2313 HK):  Nike Guidance Cut Presents An Opportunity

By Steve Zhou, CFA

  • Nike (NKE US) reported 2QFY24 results last week with a guidance cut, as the company cut FY24 full-year sales guidance to around +1%, compared to +mid-single-digit in the previous guidance. 
  • Shenzhou Intl Group Holdings (2313 HK) saw its stock drop by 8% the following day, given that Nike is Shenzhou’s most important customer, making up 30% of Shenzhou’s sales. 
  • Nike’s inventory is down another 14% yoy, and down high-single-digit compared to the previous quarter 1QFY24. 

Companies Keen to Reduce Administrative Costs, but Reluctant to Provide Convenience to Shareholders

By Aki Matsumoto

  • Not much progress has been made in the early disclosure of convocation notices. The key to even earlier disclosure of convocation notices is the moving up of earnings announcement dates.
  • Overseas investors require that all materials in the notice of convocation be provided translated in English, and only 27.3% of prime market listed companies have responded.
  • Few companies file their annual securities reports prior to AGMs. This can be taken as companies’ intention to provide as little detailed information as possible to shareholders prior to AGMs.

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Dec 28
0

Daily Brief Quantitative Analysis: KRX Short Interest Weekly (Dec 22nd): Hanwha Solutions and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • KRX Short Interest Weekly (Dec 22nd): Hanwha Solutions, Samsung Electron, Hyundai Motor

KRX Short Interest Weekly (Dec 22nd): Hanwha Solutions, Samsung Electron, Hyundai Motor

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of KRX Stocks as of Dec 22nd which has an aggregated short interest worth USD9.9bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in Hanwha Solutions, Samsung Electron, Hyundai Motor.

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Dec 28
0

Daily Brief ESG: Companies Keen to Reduce Administrative Costs and more

By | Daily Briefs, ESG

In today’s briefing:

  • Companies Keen to Reduce Administrative Costs, but Reluctant to Provide Convenience to Shareholders

Companies Keen to Reduce Administrative Costs, but Reluctant to Provide Convenience to Shareholders

By Aki Matsumoto

  • Not much progress has been made in the early disclosure of convocation notices. The key to even earlier disclosure of convocation notices is the moving up of earnings announcement dates.
  • Overseas investors require that all materials in the notice of convocation be provided translated in English, and only 27.3% of prime market listed companies have responded.
  • Few companies file their annual securities reports prior to AGMs. This can be taken as companies’ intention to provide as little detailed information as possible to shareholders prior to AGMs.

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Dec 28
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Stocks Drift Higher; Japan Wage Hikes +5% in 2024 and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | Stocks Drift Higher; Japan Wage Hikes +5% in 2024
  • Fragile Vietnamese Real Estate Sector Faces Long Road to Recovery

Ohayo Japan | Stocks Drift Higher; Japan Wage Hikes +5% in 2024

By Mark Chadwick

  • Overseas: SPX +0.1%; Stocks drift higher; 10Y Treasury yield at 3.8%; Biotech stocks surge
  • Today: NKY Futs -0.5% v cash. JPY141.5; Daihatsu Motor could face over ¥100 billion in losses
  • Markets: Japanese business leaders foresee 5% wage hikes in FY24, driving sustained growth.

Fragile Vietnamese Real Estate Sector Faces Long Road to Recovery

By Yanqi Zhu

  • The Vietnamese government is in the midst of a campaign to eradicate corruption in its domestic real estate industry, which has seen bribery and embezzlement amounting to close to 3% of the country’s gross domestic product (GDP).
  • Despite the high-profile corruption cases that have brought the sector’s financing channels to a standstill, the aggregate credit risk profile of the Vietnamese real estate industry has largely improved in recent months, after deteriorating, on the back of widespread monetary policy support from the Vietnamese government.
  • The troubled sector saw a spike in its Criat credit cycle index (CCCI) since the middle of last year when deleveraging efforts for the industry by the Vietnamese government were first announced.

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Dec 28
0

Daily Brief Event-Driven: Kum Yang: Announces Its Shares Will Be Listed on the US Stock Market Through ADRs and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Kum Yang: Announces Its Shares Will Be Listed on the US Stock Market Through ADRs
  • Hollysys (HOLI US): Dazheng Consortium “Trumps” Ascendent’s Bid
  • Updated NAV on SK Inc Post 660 Billion Pre-IPO Investment in SK Pharmteco
  • Whispir (WSP AU) Backs Soprano’s Bump
  • OreCorp (ORR AU): Silvercorp Switches to a Takeover Offer to Counter Perseus

Kum Yang: Announces Its Shares Will Be Listed on the US Stock Market Through ADRs

By Douglas Kim

  • On 27 December, Kum Yang announced that its shares will be listed on the US stock market in the form of DRs, resulting in its shares rising by 11.7%.
  • The listing of Kum Yang ADRs is likely to have a short-term positive impact on its share price as this is likely to reduce free float of local common shares.
  • Nonetheless, over the next 6-12 months, we expect Kum Yang’s share price to trade much lower (30% or more) as its shares are highly overvalued. 

Hollysys (HOLI US): Dazheng Consortium “Trumps” Ascendent’s Bid

By David Blennerhassett

  • On the 13 December, Bloomberg reported that the Recco-led group consortium was weighing a revised Offer to be “significantly higher than the $26.50-a-share cash offer from Ascendent Capital”
  • On the 24 December, a buyer consortium led by Dazheng Group announced an all-cash proposal of US$29.00/share, a 9.4% premium to Ascendent’s Offer. “Credible” financing is in place.
  • “The Consortium stands ready to engage with the Board“.  The Board should engage. The one curious aspect of this latest Offer is the apparent absence of Recco’s involvement. 

Updated NAV on SK Inc Post 660 Billion Pre-IPO Investment in SK Pharmteco

By Douglas Kim

  • It was reported today that SK Pharmteco completed a 660 billion won in pre-IPO funding valuing the company at 4 trillion won.
  • Prior to this investment, SK Inc owned a 100% stake in SK Pharmteco. After this investment, it is estimated that SK Inc will own about 83.5% stake in SK Pharmteco. 
  • Our base case valuation of SK Inc is NAV of 19.0 trillion won (NAV per share of 258,967 won), representing a 47% upside from current levels.

Whispir (WSP AU) Backs Soprano’s Bump

By David Blennerhassett

  • Soprano has upped its Offer for Whispir Ltd (WSP AU) to A$0.55/share, and has secured board support. 
  • Pendula has a higher (indicative) Offer of A$0.60/share; however Whispir sees Soprano’s terms as superior due to the “conditionality, uncertainty and timing of progressing to a binding transaction with Pendula”.
  • Soprano’s Offer for Whispir closes on the 10 January – unless extended. 

OreCorp (ORR AU): Silvercorp Switches to a Takeover Offer to Counter Perseus

By Arun George

  • Silvercorp Metals (SVM US) has switched to an off-market takeover offer. The Orecorp Ltd (ORR AU) consideration remains unchanged at A$0.19 cash and 0.0967 SVM shares per ORR share.
  • The takeover offer is conditional on a 50.1% minimum acceptance condition, achievable in the absence of a superior proposal. 
  • The crucial question is whether Perseus Mining (PRU AU) is comfortable with SVM effectively controlling ORR. We think that there is a low probability of Perseus launching a competing proposal. 

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Dec 28
0

Daily Brief Equity Bottom-Up: Shenzhou Intl (2313 HK):  Nike Guidance Cut Presents An Opportunity and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Shenzhou Intl (2313 HK):  Nike Guidance Cut Presents An Opportunity
  • Datamatics Global Services Ltd: Forensic Analysis
  • Grab Holdings (GRAB US) – Risks and Rewards in 2024
  • Nuvama: Stellar Start as an Independent Listed Entity
  • XL Axiata (EXCL IJ) – Riding the Wave of Price Reparation and Convergence
  • Sinopharm Group (1099.HK) – Performance Pressure May Continue Until 2024H1

Shenzhou Intl (2313 HK):  Nike Guidance Cut Presents An Opportunity

By Steve Zhou, CFA

  • Nike (NKE US) reported 2QFY24 results last week with a guidance cut, as the company cut FY24 full-year sales guidance to around +1%, compared to +mid-single-digit in the previous guidance. 
  • Shenzhou Intl Group Holdings (2313 HK) saw its stock drop by 8% the following day, given that Nike is Shenzhou’s most important customer, making up 30% of Shenzhou’s sales. 
  • Nike’s inventory is down another 14% yoy, and down high-single-digit compared to the previous quarter 1QFY24. 

Datamatics Global Services Ltd: Forensic Analysis

By Nitin Mangal

  • Datamatics Global Services (DATA IN) or DGSL has seen a good operational performance especially since F23, on the back of a difficult IT macro environment. 
  • Yet there are some discomforts on the forensic side, especially related to cash component. Low cash yield due to significant current account balances in subsidiaries raises alarm bells. 
  • We find opaqueness regarding some important disclosures including Ind AS 115- Revenues and Ind AS 116- Leases. Decision to increase remuneration cap size also leaves us perplexed.

Grab Holdings (GRAB US) – Risks and Rewards in 2024

By Angus Mackintosh

  • Grab Holdings looks set to move toward cashflow breakeven in 2H2024 having hit adjusted EBITDA breakeven in 3Q2023 as it successfully struck a delicate balance between growth and profitability.
  • The sale of 75% of Tokopedia by GoTo may mean more intense competition in Indonesia as it focuses on online delivery services but Grab is well-positioned to deal with this.
  • 2024 will see the potential completion of the Transcab deal plus a potential acquisition in food delivery increasing scale and competitiveness. Valuations are attractive relative to growth and financial position.

Nuvama: Stellar Start as an Independent Listed Entity

By Ankit Agrawal, CFA

  • Nuvama reported its first quarterly result since its listing, as a demerged entity. It reported strong growth across all its business segments.
  • Wealth management revenues grew 30% YoY, adjusted for one-off accounting impact. Cyclical recovery in the capital markets segment further helped.
  • Nuvama has potential to scale up rapidly and grow its profitability exponentially led by growth and operating leverage. At the current valuation, an investment in Nuvama has potential to triple.

XL Axiata (EXCL IJ) – Riding the Wave of Price Reparation and Convergence

By Angus Mackintosh

  • XL Axiata (EXCL IJ) continues to stand as the most direct way to play the data demand in Indonesia as well as being the most convergent of the listed telcos.
  • Although it saw some seasonal slowdown in 3Q, the solid growth trajectory remains intact for this year with the completion of the Link Net restructuring driving convergence growth.
  • XL Axiata (EXCL IJ) raised data prices again in November and will continue to ride the wave of price reparation over the coming quarters in a more rational pricing environment. 

Sinopharm Group (1099.HK) – Performance Pressure May Continue Until 2024H1

By Xinyao (Criss) Wang

  • Sinopharm’s 23Q1-Q3 results were below expectations. The main reason for weak performance was due to the anti-corruption campaign, which led to profound and rapid changes in fundamentals and policy end.
  • In Q4, the impact of anti-corruption would weaken and traditional distribution business would recover.So, 23Q4 performance should be better than Q3, but 23H2 performance would still be worse than 23H1.
  • We lowered our forecast for 2023 – Revenue and net profit could achieve single-digit growth. Due to the high base in 23H1, growth in 24H1 could still be under pressure. 

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Dec 28
0

Daily Brief Macro: Steno Signals #79 – A Christmas present full of USD Liquidity from Powell and Yellen! and more

By | Daily Briefs, Macro

In today’s briefing:

  • Steno Signals #79 – A Christmas present full of USD Liquidity from Powell and Yellen!
  • Credit Watch: Nothing in the credit impulse speaks in favour of a 2024 comeback
  • Hamas Rejects Ceasefire – Here’s Why It’s Actually Great News
  • 2024: Bold Predictions
  • Positioning Watch – How are markets positioned ahead of a turbulent 2024?
  • Bond Market Monitor: Time to Invest in EM Bonds
  • Part Two: JGB Yields Spike Cause Yen Mayhem
  • CX Daily: Year in Review: China’s AI Race Turns to Drumming Up Adoption

Steno Signals #79 – A Christmas present full of USD Liquidity from Powell and Yellen!

By Andreas Steno

  • Happy Sunday and welcome to a short and sweet version of our flagship editorial!
  • Liquidity conditions have improved markedly over the past couple of months, and we are about to enter a QE-like liquidity environment unless trends reverse soon, which they are unlikely to.
  • Liquidity has been improving at a $200bn a month pace since early November due to a pamphlet of tricks from BOTH the Fed and the US Treasury, and through the past weeks another sneaky “liquidity adding” factor has popped up! This is of major relevance to the overall risk sentiment.

Credit Watch: Nothing in the credit impulse speaks in favour of a 2024 comeback

By Andreas Steno

  • The equity market has been celebrating over the past couple of months and it seems like the economic consensus is moving towards a soft landing or even a no landing / re-acceleration at lightning speed.
  • Equities tend to trade closely connected to the cyclical components of the US economy with a strong correlation between ISM Manufacturing and annual returns in the S&P 500.
  • Most recent trends partially represent a bet on a rebound in the economic cycle in 2024, which looks unlikely in most of our medium-term forward looking models.

Hamas Rejects Ceasefire – Here’s Why It’s Actually Great News

By Mikkel Rosenvold

  • Welcome to a quick Holidays edition of Great Game – your weekly geopolitical update!
  • Yesterday, reports emerged that Hamas and Islamic Jihad had rejected an offer of a permanent cease-fire brokered by the Egyptians with the aid of Saudi Arabia and Qatar.
  • Reportedly, the deal would have involved a mass release of hostages, a permanent ceasefire and the formation of a transitional government in Gaza without the direct persecution or condemnation of Hamas and Islamic Jihad.

2024: Bold Predictions

By Jeroen Blokland

  • We may see a US recession, followed by eight or more Fed rate cuts, a boost in liquidity, and hence another blockbuster year for risky assets.
  • In addition, we may see some credit rating downgrades of some major economies, emphasizing the question of how attractive (government) bonds are in a long-term multi-asset portfolio.
  • 2024 may accelerate the Great Portfolio Rebalancing, seeing investors move out of traditional asset classes (bonds) into scarce and under-owned asset classes (gold, bitcoin.)

Positioning Watch – How are markets positioned ahead of a turbulent 2024?

By Andreas Steno

  • The year has generally speaking been a forecasting challenge for most to say the least, and not a lot of people forecasted the ending that we’re left with, but how does the current price action and massive inflows into both equities and bonds leave us for 2024?
  • Sentiment has been EXTREMELY bullish in Q3 and Q4 based on our z-score sentiment model but almost solely built on equity momentum, which is rarely a good sign.
  • Both option ratios, credit-spreads and market breadth have turned bearish in Q4, which should leave markets vulnerable after the boost from positive liquidity trends dwindles during Q1 2024.

Bond Market Monitor: Time to Invest in EM Bonds

By Warut Promboon

  • Here we are checking our thesis on the bond markets we reconfirmed as bullish back in September.
  • Declining inflation, as indicated by the November US Personal Consumption Expenditure (PCE) deflator, could lead to the 2% inflation target in 2024
  • A rate cut and a peak of a rate hike cycle plots a scenario where  fixed rate bonds will be the asset class of choice in 2024.

Part Two: JGB Yields Spike Cause Yen Mayhem

By Untying The Gordian Knot

  • On December 6, 2023, Deputy Gov. Ryozo Himino and other policy board members signalled increasing optimism on price and wage increases.
  • Himino said at a press conference following a meeting on Wednesday that exiting the negative rate policy would have relatively little impact on Japan’s economy.
  • “We will carefully assess the situation and consider the timing and procedure of how to exit” negative rates. 

CX Daily: Year in Review: China’s AI Race Turns to Drumming Up Adoption

By Caixin Global

  • AI / Year in Review: China’s AI race turns to drumming up adoption

  • Economy /:Year in Review: China’s economy struggles to regain early momentum

  • Trust /: Troubled Sichuan Trust offers 40% to 80% compensation to investors

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Dec 28
0

Most Read: Tongcheng Travel Holdings , Fujitsu General, Shenzhou Intl Group Holdings, Air China Ltd (H), Kum Yang, Orecorp Ltd, Hollysys Automation Technologies, SK Inc and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: HSTECH, SIG/CWG, KQ150, REPT BATTERO
  • Fujitsu General (6755) – Fujitsu Wants Out, May Force the Issue
  • Shenzhou Intl (2313 HK):  Nike Guidance Cut Presents An Opportunity
  • 2024 High Conviction: Air China (753 HK) – Update on Proposed Share Placement
  • Kum Yang: Announces Its Shares Will Be Listed on the US Stock Market Through ADRs
  • OreCorp: Silvercorp Switches To Off-Market Bid
  • Hollysys (HOLI US): Dazheng Consortium “Trumps” Ascendent’s Bid
  • Ohayo Japan | Stocks Drift Higher; Japan Wage Hikes +5% in 2024
  • Updated NAV on SK Inc Post 660 Billion Pre-IPO Investment in SK Pharmteco
  • OreCorp (ORR AU): Silvercorp Switches to a Takeover Offer to Counter Perseus

Index Rebalance & ETF Flow Recap: HSTECH, SIG/CWG, KQ150, REPT BATTERO

By Brian Freitas

  • It was a busy week with rebalance implementations at the close of trading on Thursday in Korea and then across the region on Friday.
  • The SET 50 Index changes should be announced this week and the Yuanta TW Div+ ETF will continue to implement the changes till Thursday.
  • There were inflows to China ETFs during the week while there were big outflows from Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) ETFs.

Fujitsu General (6755) – Fujitsu Wants Out, May Force the Issue

By Travis Lundy

  • In 2019, it became apparent Fujitsu Ltd (6702 JP) wanted to sell down its stakes in non-core businesses (Shinko Electric, Fujitsu General, and FDK), and move on to better things.
  • In early January 2023, a Bloomberg article suggested a sale process. A 20 Jan 2023 article suggested Fujitsu General’s auction was imminent. I wrote a piece. It was not bullish.
  • The stock rose a bit, then fell 40+% through last week. Now another article suggests some urgency at Fujitsu. That changes things.

Shenzhou Intl (2313 HK):  Nike Guidance Cut Presents An Opportunity

By Steve Zhou, CFA

  • Nike (NKE US) reported 2QFY24 results last week with a guidance cut, as the company cut FY24 full-year sales guidance to around +1%, compared to +mid-single-digit in the previous guidance. 
  • Shenzhou Intl Group Holdings (2313 HK) saw its stock drop by 8% the following day, given that Nike is Shenzhou’s most important customer, making up 30% of Shenzhou’s sales. 
  • Nike’s inventory is down another 14% yoy, and down high-single-digit compared to the previous quarter 1QFY24. 

2024 High Conviction: Air China (753 HK) – Update on Proposed Share Placement

By Osbert Tang, CFA

  • Air China (H) (753 HK) is proposing a new share placement to raise Rmb6bn and HK$2bn. EPS dilution is manageable at 6% so we view the proposal positively.  
  • The new equity will enhance book value by 11.5% and lower its gearing by 103pp to 399.8%. The full subscription by the parent is also a vote of confidence. 
  • Recent share price weakness is due to the overall weakness in the Chinese equity market, but both macro and operating environments are improving. Selldown is unjustified.

Kum Yang: Announces Its Shares Will Be Listed on the US Stock Market Through ADRs

By Douglas Kim

  • On 27 December, Kum Yang announced that its shares will be listed on the US stock market in the form of DRs, resulting in its shares rising by 11.7%.
  • The listing of Kum Yang ADRs is likely to have a short-term positive impact on its share price as this is likely to reduce free float of local common shares.
  • Nonetheless, over the next 6-12 months, we expect Kum Yang’s share price to trade much lower (30% or more) as its shares are highly overvalued. 

OreCorp: Silvercorp Switches To Off-Market Bid

By David Blennerhassett

  • On the 24 November, Silvercorp Metals (SVM CN) bumped its Scheme Offer for Orecorp Ltd (ORR AU) to A$0.19 in cash and 0.0967 new Silvercorp shares.
  • At a 40.1% premium to undisturbed and key shareholder Tim Goyder (5.14%) supportive, this looked done. Then Perseus (PRU AU) built a 19.9% stake and said it would vote no.
  • After postponing the Scheme meeting, Silvercorp and Orecorp have now agreed to an off-market takeover, on the same terms. The tendering threshold is 50.1%. 

Hollysys (HOLI US): Dazheng Consortium “Trumps” Ascendent’s Bid

By David Blennerhassett

  • On the 13 December, Bloomberg reported that the Recco-led group consortium was weighing a revised Offer to be “significantly higher than the $26.50-a-share cash offer from Ascendent Capital”
  • On the 24 December, a buyer consortium led by Dazheng Group announced an all-cash proposal of US$29.00/share, a 9.4% premium to Ascendent’s Offer. “Credible” financing is in place.
  • “The Consortium stands ready to engage with the Board“.  The Board should engage. The one curious aspect of this latest Offer is the apparent absence of Recco’s involvement. 

Ohayo Japan | Stocks Drift Higher; Japan Wage Hikes +5% in 2024

By Mark Chadwick

  • Overseas: SPX +0.1%; Stocks drift higher; 10Y Treasury yield at 3.8%; Biotech stocks surge
  • Today: NKY Futs -0.5% v cash. JPY141.5; Daihatsu Motor could face over ¥100 billion in losses
  • Markets: Japanese business leaders foresee 5% wage hikes in FY24, driving sustained growth.

Updated NAV on SK Inc Post 660 Billion Pre-IPO Investment in SK Pharmteco

By Douglas Kim

  • It was reported today that SK Pharmteco completed a 660 billion won in pre-IPO funding valuing the company at 4 trillion won.
  • Prior to this investment, SK Inc owned a 100% stake in SK Pharmteco. After this investment, it is estimated that SK Inc will own about 83.5% stake in SK Pharmteco. 
  • Our base case valuation of SK Inc is NAV of 19.0 trillion won (NAV per share of 258,967 won), representing a 47% upside from current levels.

OreCorp (ORR AU): Silvercorp Switches to a Takeover Offer to Counter Perseus

By Arun George

  • Silvercorp Metals (SVM US) has switched to an off-market takeover offer. The Orecorp Ltd (ORR AU) consideration remains unchanged at A$0.19 cash and 0.0967 SVM shares per ORR share.
  • The takeover offer is conditional on a 50.1% minimum acceptance condition, achievable in the absence of a superior proposal. 
  • The crucial question is whether Perseus Mining (PRU AU) is comfortable with SVM effectively controlling ORR. We think that there is a low probability of Perseus launching a competing proposal. 

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Dec 28
0

Daily Brief Australia: Whispir Ltd, Orecorp Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Whispir (WSP AU) Backs Soprano’s Bump
  • OreCorp (ORR AU): Silvercorp Switches to a Takeover Offer to Counter Perseus

Whispir (WSP AU) Backs Soprano’s Bump

By David Blennerhassett

  • Soprano has upped its Offer for Whispir Ltd (WSP AU) to A$0.55/share, and has secured board support. 
  • Pendula has a higher (indicative) Offer of A$0.60/share; however Whispir sees Soprano’s terms as superior due to the “conditionality, uncertainty and timing of progressing to a binding transaction with Pendula”.
  • Soprano’s Offer for Whispir closes on the 10 January – unless extended. 

OreCorp (ORR AU): Silvercorp Switches to a Takeover Offer to Counter Perseus

By Arun George

  • Silvercorp Metals (SVM US) has switched to an off-market takeover offer. The Orecorp Ltd (ORR AU) consideration remains unchanged at A$0.19 cash and 0.0967 SVM shares per ORR share.
  • The takeover offer is conditional on a 50.1% minimum acceptance condition, achievable in the absence of a superior proposal. 
  • The crucial question is whether Perseus Mining (PRU AU) is comfortable with SVM effectively controlling ORR. We think that there is a low probability of Perseus launching a competing proposal. 

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