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In today’s briefing:
- Adani Ent FPO – Early Demand Muted, Adani & Hindenburg Trade Barbs Again, But Not a Good Look
- Smartkarma Webinar | This Is Not A Webinar On Adani
- Matheson To Exit Greatview Aseptic
- HMM Is Likely the First to Be Subject to the Mandatory Offer that Comes into Force
- Using Smartkarma/OWL ESG Analytics to Narrow Down List of Corporate Activism Targets in Korea
- Nihon M&A: Weak Earnings and Guidance for Full-Year Seems Too Optimistic
- General Electric: Successful Spinoff & Other Developments
- Raytheon Technologies: Partnership With Microsoft & Other Drivers
- 3M Inc: New AI Technology & Other Developments
Adani Ent FPO – Early Demand Muted, Adani & Hindenburg Trade Barbs Again, But Not a Good Look
- The Adani Enterprises (ADE IN) FPO saw VERY muted demand (realtime available on NSE+BSE websites) on Day 1 Friday as the share price plummeted through the bottom of the range.
- The Adani Group responded to Hindenburg late Sunday with a 400-page rebuttal, cloaked in nationalistic terms. Hindenburg responded saying the company failed to answer 62 of 88 questions.
- This is not going away. They could lower the FPO price, or just pull the FPO. That won’t materially change the significant over-valuation of many Adani Group listco share prices.
Smartkarma Webinar | This Is Not A Webinar On Adani
In the next installment of our Webinar Wednesdays, we go live with Smartkarma Insight Provider, Travis Lundy as he gives us a quick rundown about what is the current situation that is happening with Adani Enterprises and where they are headed from this point on.
The webinar will be hosted on Wednesday, 1 February 2023, 17:00 SGT/HKT.
Travis Lundy has 20+ years of experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies, with most of that time spent managing money.
Matheson To Exit Greatview Aseptic
- Shandong Xinjufeng Technology Packaging (301296 CH) is seeking to acquire Jardine Matheson Holdings (JM SP)‘s 28.22% stake in Greatview Aseptic Packaging (468 HK) at HK$2.65/share.
- Greatview is currently suspended “pending the release of an announcement which contains inside information“, suggesting there is no follow on Offer for remaining shares.
- Elsewhere, Matheson has resumed its share repurchase program, providing near-term support.
HMM Is Likely the First to Be Subject to the Mandatory Offer that Comes into Force
- KDB recently initiated the process of selecting an advisory firm to sell its stake in HMM, which will likely be the first to implement the mandatory offer rule.
- Potential bidders include Hyundai Glovis, LX Holdings, and Samsung SDS. As for POSCO Holdings, it recently said that it is not considering acquiring HMM.
- Given that HMM is the only national shipping company, there is a good chance that multiple bidders will appear, which will lead to a premium to the market price.
Using Smartkarma/OWL ESG Analytics to Narrow Down List of Corporate Activism Targets in Korea
- We discuss how to use the OWL ESG Analytics (available on Smartkarma) to narrow down the list of companies that could be the next targets of corporate activism in Korea.
- We go through in detail, step-by-step process of how to narrow down the list of companies, using the OWL ESG Analytics.
- Corporate activism has been one of the most important, market moving factors moving the Korean stock market this year.
Nihon M&A: Weak Earnings and Guidance for Full-Year Seems Too Optimistic
- Nihon M&A Center (2127 JP) reported 3QFY03/2022 results. Revenue declined 9.9% YoY to JPY9.8bn (vs consensus JPY13.6bn) while OP dropped 21.9% YoY to JPY3.2bn (vs consensus JPY6.1bn).
- Though there had been an increase in the no. of transactions completed during the quarter, revenue declined due to price pressures.
- Share price has declined 22.8% during today’s trade due to weaker-than-expected earnings and we think full-year FY03/2022E guidance is too hard to achieve.
General Electric: Successful Spinoff & Other Developments
- General Electric finished the year on a positive note with an all-around beat in Q4, improved cash generation, margin expansion, and revenue growth.
- Power delivery, within GE Vernova with continued stability at gas and took significant actions for positioning renewable energy for future profitability.
- The plans of GE to launch GE Aerospace and GE Vernova are progressing well.
Raytheon Technologies: Partnership With Microsoft & Other Drivers
- Raytheon delivered a mixed set of results in the face of significant macroeconomic challenges, including labor and supply chain constraints, managing record levels of inflation, and transitioning out of Russia.
- The company brought new technologies to market, and it drove further digitation and automation through product sustainment and manufacturing.
- Raytheon also completed the foremost engine test run for its provincial hybrid flight demonstrator.
3M Inc: New AI Technology & Other Developments
- 3M delivered a mixed set of results amidst the challenging economic environment with supply chain disruptions, inflation, and slowing growth.
- Because of Covid-related disruptions, 3M saw a significant slowing in China and modernizing demand over industrial markets.
- With the supply chain stabilizing, 3M is focused on driving working capital and improving manufacturing operations.
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