Category

Australia

Nov 07
0

Daily Brief Australia: Perpetual Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Weekly Deals Digest (06 Nov) – Perpetual, Pendal, Nitro, ReadyTech, VNET, Singapore Medical, Blibli

Weekly Deals Digest (06 Nov) – Perpetual, Pendal, Nitro, ReadyTech, VNET, Singapore Medical, Blibli

By Arun George

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Nov 06
0

Daily Brief Australia: Perpetual Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Perpetual, Nitro, Fengxiang, Pushpay, Singapore Medical

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Perpetual, Nitro, Fengxiang, Pushpay, Singapore Medical

By David Blennerhassett

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Nov 04
0

Daily Brief Australia: Perpetual Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Arbs Take Another Hit as Regal’s Offer for Perpetual Puts Pendal Deal at Risk
  • EQT/Baring/Regal’s Tilt For Perpetual Muddies Waters on Pendal (PDL AU) Deal
  • Perpetual Turns from Predator to Prey with Regal/BPEA EQT’s Offer

Arbs Take Another Hit as Regal’s Offer for Perpetual Puts Pendal Deal at Risk

By Brian Freitas

  • Regal Partners and BPEA have made a conditional, non-binding indicative proposal to acquire Perpetual Ltd at A$30/share in cash. Perpetual would need to terminate the SID with Pendal Group.
  • Perpetual Ltd (PPT AU)‘s Board has rejected the offer. Today’s price action is partially driven by arbs selling Pendal shares and buying back their Perpetual shorts. 
  • The Pendal Group / Perpetual Ltd price ratio is trading below the levels from August and could move higher if Perpetual and/or the consortium decide not to move ahead.

EQT/Baring/Regal’s Tilt For Perpetual Muddies Waters on Pendal (PDL AU) Deal

By David Blennerhassett

  • Perpetual (PPT AU) has received an indicative proposal in which EQT/Baring Private Equity Asia takes Perpetual’s private clients and corporate trustee businesses, and Regal (RPL AU) the asset management arm. 
  • The A$1.75bn buyout proposal, by way of a $30/share cash Offer – and an undefined Regal scrip alternative – was rejected by Perpetual as it “materially undervalues” the company.
  • The twist in the proposal is that it is contingent on the termination of the earlier-announced Scheme between Perpetual and Pendal Group (PDL AU)

Perpetual Turns from Predator to Prey with Regal/BPEA EQT’s Offer

By Arun George

  • Perpetual Ltd (PPT AU) rejected a conditional, non-binding indicative proposal from Regal Partners (RPL AU)/BPEA EQT at A$30.00 per share, an 11.5% premium to the undisturbed price. 
  • Regal/BPEA EQT’s aim is to present shareholders with a choice – pay a premium to merge with Pendal Group (PDL AU) or receive a lower risk premium from Regal/BPEA EQT. 
  • The Perpetual/Pendal deal is increasingly on shaky grounds. The skinny premium suggests that Regal/BPEA EQT have headroom to bump the offer to get the Board to engage. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Nov 02
0

Daily Brief Australia: ReadyTech Holdings Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Readytech (RDY AU): Microequities Baulks At PEP’s A$4.50/Share Indicative Offer
  • ReadyTech’s Indicative Offer of A$4.50 from Pacific Equity Partners Good Enough?

Readytech (RDY AU): Microequities Baulks At PEP’s A$4.50/Share Indicative Offer

By David Blennerhassett

  • Software outfit ReadyTech (RDY AU) has announced an indicative proposal from Pacific Equity Partners and affiliates, to acquire ReadyTech by way of a Scheme of Arrangement at $4.50/share.
  • Pemba Capital, with 32.01% of shares out, are in discussion with PEP as to what appears to be the PE firm rolling over shares. 
  • ReadyTech’s independent board has granted PEP non-exclusive due diligence to flesh out a firm Offer. According to media reports, Microequities, with ~13%, is not on board whatsoever.

ReadyTech’s Indicative Offer of A$4.50 from Pacific Equity Partners Good Enough?

By Arun George

  • ReadyTech Holdings Ltd (RDY AU) confirmed that it received a conditional, non-binding indicative proposal from Pacific Equity Partners (PEP) at A$4.50 per share, a 38.9% premium to the undisturbed price.
  • PEP aims to jointly work with Pemba, the largest shareholder with a 32.01% stake, on the proposal. Microequities, the second-largest shareholder, is said to oppose the offer.
  • The offer represents an all-time price high but struck at a discount to peer multiples, suggesting room for a bump. At last close, the spread to the offer is 8.4%.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Nov 01
0

Daily Brief Australia: Nitro Software Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Nitro Attracts a Competing Offer from KKR’s Alludo

Nitro Attracts a Competing Offer from KKR’s Alludo

By Arun George

  • Nitro Software Ltd (NTO AU) has received a competing proposal from Alludo. The offer is A$2.00 via a scheme or an off-market takeover at A$2.00, with a 50.1% minimum acceptance condition.
  • Unsurprisingly, the Board rejected Potentia’s A$1.80 per share off-market takeover offer. Potentia has three options – lift its offer, do nothing or sell into Alludo’s offer. 
  • While Alludo’s offer is 11.1% above Potentia’s offer, it is far from a knockout bid. Therefore, there is a good chance that Potentia returns with improved terms.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Oct 30
0

Daily Brief Australia: Monadelphous, Nitro Software Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: S&P/ASX, STAR50, CSI300, SSE50, IDX, GOTO, SMM/KEP
  • Nitro’s Carrot-And-Stick A$1.80 Takeover Offer from Potentia

Index Rebalance & ETF Flow Recap: S&P/ASX, STAR50, CSI300, SSE50, IDX, GOTO, SMM/KEP

By Brian Freitas

Nitro’s Carrot-And-Stick A$1.80 Takeover Offer from Potentia

By Arun George

  • Nitro Software Ltd (NTO AU) entered a trading halt in response to Potentia’s off-market takeover offer of A$1.80 per share, a 13.9% premium to its previous rejected offer of A$1.58.
  • Potentia will block rival schemes and not accept competing takeover offers. This move will make it hard for the Board to convince a rival bidder to table an offer.
  • Potentia wants a friendly offer and placed majority Board support as a condition. The offer is unattractive but Potentia has hinted at improved terms if provided due diligence access. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Oct 29
0

Daily Brief Australia: Rio Tinto PLC and more

By | Australia, Daily Briefs

In today’s briefing:

  • Rio Tinto ADR: Initiation of Coverage – Business Strategy

Rio Tinto ADR: Initiation of Coverage – Business Strategy

By Baptista Research

  • This is our first report on global metals and mining giant, Rio Tinto.
  • The company has been witnessing a decent demand for all of its primary commodities as per recent results.
  • Moreover, the Rio Tinto Safe Production System is still being effectively implemented, and there are now 15 deployments at 11 sites, up from 5 sites at the beginning of the year.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Oct 26
0

Daily Brief Australia: Costa Group Holdings, Elmo Software and more

By | Australia, Daily Briefs

In today’s briefing:

  • Costa Group’s Low-Hanging Fruit: Paine Schwartz Renews Interest
  • ELMO Software (ELO AU): $4.85/Share Offer From K1 Investment

Costa Group’s Low-Hanging Fruit: Paine Schwartz Renews Interest

By David Blennerhassett

  • Costa Group Holdings (CGC AU), one of Australia’s largest fresh fruit and vegetable producer, is understood to be in the cross-hairs of Paine Schwartz Partners.
  • According to the AFR, Paine is using Citi to buy shares up to $2.60/share a 16.6% premium to last close, with a 15% stake in mind.
  • There’s a whiff of opportunism here after Costa’s recent EBITDA downgrade. However, the return of its major shareholder suggests value has emerged.

ELMO Software (ELO AU): $4.85/Share Offer From K1 Investment

By David Blennerhassett

  • Elmo Software (ELO AU) has entered into a Scheme Implementation Deed (“SID”) with K1 Investment under which ELMO shareholders will be entitled to receive $4.85/share, in cash.
  • The SID has the support of the independent board and ELMO’s three largest shareholders collectively holding ~33.4% of shares out. 
  • The Scheme is expected to complete in the 1Q23. The proposal requires FIRB approval. This looks done.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Oct 24
0

Daily Brief Australia: Lendlease Group, Link Administration and more

By | Australia, Daily Briefs

In today’s briefing:

  • S&P/​​​​​ASX Index Rebalance Preview: Moving the Right Way
  • Weekly Deals Digest (23 Oct) – Link, Nearmap, Pushpay, Tyro, Singapore Medical, DTAC/True, Blibli

S&P/​​​​​ASX Index Rebalance Preview: Moving the Right Way

By Brian Freitas

  • We see one potential change for the S&P/ASX 50 Index and two potential changes for the S&P/ASX 200 at the December rebalance, though some stocks are close to the cutoffs.
  • The potential passive buying on the S&P/ASX 200 (AS51 INDEX) adds will exceed 11 days of ADV while the impact on the other stocks ranges from 1.5-4 days of ADV.
  • Most stocks have been moving the right way and there will be pre-positions built up on some of the stocks. Shorts have been active on a few names too.

Weekly Deals Digest (23 Oct) – Link, Nearmap, Pushpay, Tyro, Singapore Medical, DTAC/True, Blibli

By Arun George

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Oct 23
0

Daily Brief Australia: OZ Minerals Ltd, Nearmap Ltd, PolyNovo Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • OZ Minerals – Circumstances Apparently Do NOT Merit a Revised Tilt
  • Nearmap’s Spread Widens, Scheme Meeting on 25 November
  • Nearmap (NEA AU): 25 Nov Scheme Meeting. IE Says Fair & Reasonable
  • PolyNovo Ltd (PNV AU): Shares Are Rallying Fueled by Strong US Sales and New Product Approval

OZ Minerals – Circumstances Apparently Do NOT Merit a Revised Tilt

By Travis Lundy

  • Talk about timing… Friday before the close I wrote that I thought circumstances might merit a revised tilt at OZ Minerals Ltd (OZL AU) by BHP Group Ltd (BHP AU). 
  • Earnings are Monday, copper is up in AUD terms, time is moving us forward into a supply squeeze. It all looks good to me.
  • But an article this morning in the AFR says BHP CEO Mike Henry called OZ Minerals “nice to have” not a “must have” and talked “discipline.” Oops.

Nearmap’s Spread Widens, Scheme Meeting on 25 November

By Arun George

  • The IE considers Thoma Bravo’s A$2.10 offer fair and reasonable as it is within its valuation range of A$1.94 to A$2.45 per share (but the below the midpoint of A$2.20). 
  • The spread has risen due to suggestions that some investors aim to block the scheme. These investors aim for a bump but will likely settle for the offer if unsuccessful. 
  • At Nearmap Ltd (NEA AU)‘s last close price and for the 15 December payment, the gross and annualised spread is 5.8% and 44.5%, respectively.

Nearmap (NEA AU): 25 Nov Scheme Meeting. IE Says Fair & Reasonable

By David Blennerhassett

  • On the 15 August, mapping technology outfit Nearmap Ltd (NEA AU) unanimously backed Thoma Bravo’s A$2.10/share Offer by way of a Scheme of Arrangement. 
  • The Scheme Booklet has now been lodged with ASIC. The Independent Expert reckons the Offer is fair and reasonable. 
  • The Scheme Meeting will be held on the 25 November, as previously flagged in August’s SID, with an expected implementation on the 15 December. 

PolyNovo Ltd (PNV AU): Shares Are Rallying Fueled by Strong US Sales and New Product Approval

By Tina Banerjee

  • PolyNovo Ltd (PNV AU) reported 73% y/y revenue growth to A$12.5M in Q1FY23, driven by the U.S. The company reported record high monthly sales of A$5.4M in September 2022.
  • The company is aggressively expanding team and the increased headcount is having the desired impact on sales growth and loss continues to be minimized compared to business expansion.
  • PolyNovo received FDA clearance for NovoSorb MTX, which expands PolyNovo’s U.S. addressable market by ~A$500M. The company plans to launch SynPath in the U.S. in 2023 (addressable market ~$400M).

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free