Category

Australia

Aug 14
0

Daily Brief Australia: Mayne Pharma, OZ Minerals Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Mayne Pharma (MYX AU): CDMO Business Sale- A Step Towards Focus Solely on Specialty Pharma
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Oz Minerals, Lifestyle, EVOC Tech, Shinoken, DTAC/True

Mayne Pharma (MYX AU): CDMO Business Sale- A Step Towards Focus Solely on Specialty Pharma

By Tina Banerjee

  • Mayne Pharma (MYX AU) is selling its U.S.-based CDMO business, Metrics Contract Services for $475 million. The transaction is expected to close by the end of 2022.
  • Allowing for reinvestment needs, the net proceeds from the sale will be used to repay the syndicated debt facility and return surplus capital to shareholders.
  • Combined oral contraceptive Nextstellis remains the company’s most significant commercial opportunity. While Nextstellis was launched in the U.S. in June 2021, Mayne has launched Nextstellis in Australia in July 2022.  

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Oz Minerals, Lifestyle, EVOC Tech, Shinoken, DTAC/True

By David Blennerhassett

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Aug 11
0

Daily Brief Australia: GQG Partners and more

By | Australia, Daily Briefs

In today’s briefing:

  • GQG Partners IPO Lock-Up – Tightly Held by Founders, PAC Could Exit

GQG Partners IPO Lock-Up – Tightly Held by Founders, PAC Could Exit

By Sumeet Singh

  • GQG Partners (GQG) raised US$868m in its Australia IPO in Oct 2021. Its IPO linked lockup is set to expire soon.
  • GQG is a global investment boutique with a focus on managing active equity portfolios.
  • In this note, we will talk about the lock-up dynamics and updates since our last note.

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Aug 09
0

Daily Brief Australia: OZ Minerals Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Oz Minerals Rejects BHP’s Opportunistic Foray – Expect More

Oz Minerals Rejects BHP’s Opportunistic Foray – Expect More

By Travis Lundy

  • Early 8 August, OZ Minerals Ltd (OZL AU) announced it had rejected BHP Group Ltd (BHP AU)‘s  indicative acquisition proposal at A$25.00/share, after BHP had bought less than 5%.
  • The Board took a quick look over the weekend and decided “the Indicative Proposal significantly undervalues OZ Minerals” and rejected it out of hand. 
  • It has been an obvious deal for years. This may not be BHP’s last go, but they will probably need to pay more like A$30/share to get it. 

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Aug 08
0

Daily Brief Australia: OZ Minerals Ltd, Mesoblast Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • OZ Minerals (OZL): BHP Offer Swiftly Rejected
  • Mesoblast (MSB AU): Trading Halt; Decreased Net Cash Usage in Q4; Positive Clinical Trial Results

OZ Minerals (OZL): BHP Offer Swiftly Rejected

By Brian Freitas

  • BHP Group Ltd (BHP AU) made a non-binding indicative proposal to acquire all shares in OZ Minerals Ltd (OZL AU) at A$25/share and was swiftly rejected.
  • We feel an offer around the A$28.5-A$29/share range would get the OZ Minerals Ltd (OZL AU) Board to open up its books for due diligence.
  • 3.25% of the outstanding shares have been shorted and the stock could trade higher than the BHP offer price. We’d wait for a price around A$25/share to enter.

Mesoblast (MSB AU): Trading Halt; Decreased Net Cash Usage in Q4; Positive Clinical Trial Results

By Tina Banerjee

  • Mesoblast Ltd (MSB AU) shares have been put on trading halt on August 4 due to pending announcement on private placement. The company undertook last private placement in March 2021.
  • Net operating cash usage has been declining over the last six quarters. In Q4FY22, net cash usage for operating activities decreased 33% y/y to $13.9 million.
  • Last month, Mesoblast announced promising results from rexlemestrocel-L trial in chronic heart failure patients. Rexlemestrocel-L delivered an improvement in left ventricular ejection fraction at 12 months.

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Aug 06
0

Daily Brief Australia: Link Administration and more

By | Australia, Daily Briefs

In today’s briefing:

  • Link Admin: Dye & Durham Offers To Sell Aussie Ops To Appease ACCC

Link Admin: Dye & Durham Offers To Sell Aussie Ops To Appease ACCC

By David Blennerhassett

  • The ACCC is seeking views on whether Dye & Durham’s proposed sale of GlobalX and the Australian operations of SAI Global, is sufficient to approve Link Administration (LNK AU)‘s takeover.
  • Separately, the postponed Scheme meeting will be held on the 22 August.  The Independent Expert continues to conclude that the Revised Scheme is fair and reasonable.
  • The proposed date for the announcement of ACCC’s findings is the 8th September, one day prior to the Second Court Date.

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Aug 05
0

Daily Brief Australia: Resapp Health, Opthea Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • ResApp’s Revised Offer from Pfizer Still Faces Headcount Test Risk
  • Opthea Ltd (OPT AU): Lead Asset for Highly Prevalent Retinal Disease Moving Toward Commercialization

ResApp’s Revised Offer from Pfizer Still Faces Headcount Test Risk

By Arun George

  • Pfizer Inc (PFE US) upped its Resapp Health (RAP AU) offer from A$0.146 per share to A$0.208 per share, in line with the independent expert’s preferred value of A$0.208 per share.
  • The NO vote camp from defiant retail shareholders forced Pfizer to up its offer. Unfortunately, a vocal NO camp is still present despite Pfizer’s revised higher offer.
  • At the last close, the gross spread is 9.5%. The risk/reward profile is unfavourable as ResApp is a highly-held retail stock, posing a headcount test risk to the scheme.  

Opthea Ltd (OPT AU): Lead Asset for Highly Prevalent Retinal Disease Moving Toward Commercialization

By Tina Banerjee

  • Opthea Ltd (OPT AU) is developing OPT-302, a first-in-class investigational drug. With improved efficacy, OPT-302 has the potential to be the next transformative step in the treatment of wet AMD.
  • Pivotal phase 3 trials are ongoing for OPT-302, with topline data expected in mid-2024. OTP-302 is expected to be launched in 2025. OPT-302 represents a multi-billion-dollar peak sales opportunity.
  • As of December 2021, Opthea had cash balance of A$88 million and no debt. Over the trailing 12 months, the company had cash burn of A$56 million.

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Aug 03
0

Daily Brief Australia: Clinuvel Pharmaceuticals and more

By | Australia, Daily Briefs

In today’s briefing:

  • Clinuvel Pharmaceuticals (CUV AU): Great Marketed Product; Strong Financials; Rich Pipeline

Clinuvel Pharmaceuticals (CUV AU): Great Marketed Product; Strong Financials; Rich Pipeline

By Tina Banerjee

  • Since publishing my bullish insight on Clinuvel Pharmaceuticals (CUV AU)  on April 29, the company reported ongoing positive financial performance and progress across its expanded clinical program.
  • In Q4FY22, Clinuvel’s customer receipts surged 62% y/y to AUD24.05 million, mainly driven by rising clinical demand for Scenesse treatment.
  • Clinuvel stands out amongst its domestic peers for being profitable and cash flow positive. The company has sufficient cash reserves to self-finance planned organic growth.

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Aug 01
0

Daily Brief Australia: Genex Power Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Merger Arb Mondays (01 Aug) – Genex, Yashili, Link Admin, VNET, Ramsay, Alliance Aviation

Merger Arb Mondays (01 Aug) – Genex, Yashili, Link Admin, VNET, Ramsay, Alliance Aviation

By Arun George

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Jul 31
0

Daily Brief Australia: Ramsay Health Care and more

By | Australia, Daily Briefs

In today’s briefing:

  • Weekly Deals Digest (31 Jul) – Ramsay, Genex, MACA, Yancoal, Yashili, Thai Life, Hongjiu Fruit, WCP

Weekly Deals Digest (31 Jul) – Ramsay, Genex, MACA, Yancoal, Yashili, Thai Life, Hongjiu Fruit, WCP

By Arun George

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Jul 30
0

Daily Brief Australia: MACA Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • ACS/Thiess/MACA: Generous Premium

ACS/Thiess/MACA: Generous Premium

By Jesus Rodriguez Aguilar

  • Thiess is launching an agreed offer to acquire 100% of MACA Ltd (MLD AU) at AUD 1.025/share, in cash, cum dividend, a 28% premium, 2.8x EV/Fwd EBITDA. Minimum acceptance condition is 90%.
  • Thiess is gaining scale with the acquisition of MACA. I believe that in the future ACS/Hochtief/CIMIC will seek to acquire the whole of Thiess.
  • Gross spread (as of 29 July) is 2.43%, for a deal with high chances to complete. I would be long at this price.

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