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In today’s briefing:
- StubWorld: Sun Corp (6736 JP) Running Out Of Puff?
- T-Gaia (3738 JP) – Possible Premium Takeout Story
- Best World (BEST SP): EGM Vote on 19 July
- Asics (7936) | Raising the Bar
- Quiddity Leaderboard ChiNext & ChiNext 50 Dec 24: Expected ADDs Could Outperform Expected DELs
- Hyundai Motor India Pre-IPO – The Positives – Quasi-Local, Riding the SUV Wave
- Nu Ride (NRDE) – Friday, Mar 22, 2024
- Carlsberg/Britvic: Awaiting a Third Proposal
- VRA: Snapping the Store: The Calm before the “New Day;” Reiterate Buy, $10 PT
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StubWorld: Sun Corp (6736 JP) Running Out Of Puff?
- Trading comfortably through the Partial Offer terms, Sun Corp (6736 JP) may still do nothing with its Cellebrite DI (CLBT US) holding towards narrowing the NAV discount.
- Preceding my comments on Sun Corp are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
T-Gaia (3738 JP) – Possible Premium Takeout Story
- I kind of hate this, but I also can’t ignore it. Apparently, an expensive media service Reporting on Deals or about the Market for Mergers, had an article today.
- Bloomberg carried a small blurb saying there was “speculation on a tender offer…. according to traders”. The stock is untraded, limit up.
- The most informative comment comes from Japanese stock market portal ‘kabutan‘ which suggests “overseas media” thinks Sumitomo Corp will sell its shares. I look at the possibilities below.
Best World (BEST SP): EGM Vote on 19 July
- The Best World International (BEST SP) IFA considers the S$2.56 exit offer fair and reasonable as it is towards the upper end of its S$1.36-2.69 per share valuation range.
- The key conditions are approval for the selective capital reduction (at least 75% of eligible shareholders) and delisting resolution (a majority holding not less than 75% in value).
- The lack of activists, IFA supporting recommendations, and no competing offer suggest a done deal. At the last close, the gross spread was 2.8%.
Asics (7936) | Raising the Bar
- Asics has demonstrated impressive growth in gross profit margins, as evidenced by 4.3ppt YoY improvement in Q1 to 54.5%
- Asics has been successful in growing market share and enhancing its brand strength
- For FY2024, we now forecast a 10% YoY increase in sales to ¥628 billion and a 46% rise in OP to ¥79 billion (prev: ¥ 71b)
Quiddity Leaderboard ChiNext & ChiNext 50 Dec 24: Expected ADDs Could Outperform Expected DELs
- The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
- The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
- We see seven change for the ChiNext index and five changes for the ChiNext 50 index.
Hyundai Motor India Pre-IPO – The Positives – Quasi-Local, Riding the SUV Wave
- Hyundai Motor (005387 KS) is looking to raise around US$3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
- HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
- In this note, we talk about the positive aspects of the deal.
Nu Ride (NRDE) – Friday, Mar 22, 2024
- Nu Ride is a SPAC with $2.5 per share in cash and $1 billion in net operating losses
- Company has $2.9 per share of net cash and $2.0 per share of perpetual preferred held by Foxconn
- Ongoing litigation actions against Foxconn and former executives could result in potential increase in net cash value to $4.5 per share
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.
Carlsberg/Britvic: Awaiting a Third Proposal
- On June 24, Carlsberg announced that Pepsico had agreed to waive a change of control clause in its bottling deals with Britvic. The current proposal is 1250p (+9.5p interim).
- The offer represents an undemanding 12x EV/fwd NTM EBITDA. My standalone base case fair-value estimate is 1,056p/share. An improved offer could come >1,300p, although 1,420p (13.3x wouldn’t be unreasonable).
- Gross spread to the revised offer is 6.2% (6.9% including interim). Shares are pricing a 72% probability of deal success. I believe Carlsberg will come with an improved offer. Long.
VRA: Snapping the Store: The Calm before the “New Day;” Reiterate Buy, $10 PT
- We are reiterating our Buy rating.
- $10 price target and projections for Vera Bradley after visiting stores in Long Island and Connecticut.
- With the soft launch of “New Day” set for July 11th (and formal premier on July 15th, June is, with one major exception, a month for the stores to clear goods and prepare for the new offerings; replenishment has been placed on hold and the end-of-season sales have been moved up to drive lower inventories and reduce the stresses from rolling out new looks at the main line stores and shifting older goods to the outlets.