In today’s briefing:
- Olam Teams Up With Saudi Arabia’s SALIC
- Uniti (UWL AU): Macquarie Hung Out To Dry As Morrison/Brookfield Up Bid
- Jin Jiang Capital (2006 HK): Tardy, But Pre-Con Approvals Were Never In Doubt
- Uniti’s Revised A$5.00 Offer from Morrison/Brookfield
- Belle Fashion Pre-IPO – The Positives – Try Walking in My Shoes
- Kimly: A Yummy, Undervalued Re-Opening F&B Play in Singapore
- JD Health 2H2021: Healthy Results with More Than 60% Top Line Growth
- Thailand Casino Legalization Prospects Boost Las Vegas Sands Targeting of Its Third Asian Nation IR
- Belle Fashion Pre-IPO – The Negatives – You’ll Stumble in My Footsteps
- Kraft Heinz: Lackluster Strategic Positioning
Olam Teams Up With Saudi Arabia’s SALIC
- Ten days after Olam Group (OLG SP)‘s restructuring became effective, Saudi-backed SALIC, entered into an SPA to acquire 35.4% of Olam Agri (OGA).
- The proposed US$1.24bn investment implied an equity value of US3.5bn for the bulk agricultural commodity player.
- The OFI unit, which focuses on food ingredients (cocoa, coffee, nuts, and spices), is still seeking a listing in London. OGA is expected to go public six months after OFI.
Uniti (UWL AU): Macquarie Hung Out To Dry As Morrison/Brookfield Up Bid
- Morrison, now with Brookfield on a 50/50 basis, have matched Macquarie Asset Management’s Real Assets division / Public Sector Pension Investment Board’s $5.00/share Offer for Uniti Group Ltd (UWL AU).
- The revised proposal was predicated on Uniti severing talks with Macquarie as it may get access to competitively sensitive information. Uniti’s board has acquiesced – “at this time“.
- Share pulled back on the news and closed at a 7.8% gross spread to the indicative terms.
Jin Jiang Capital (2006 HK): Tardy, But Pre-Con Approvals Were Never In Doubt
- Hotel operator Shanghai Jin Jiang Capital Company Limited (2006 HK) announced yesterday that all pre-conditions to the Offer from Shanghai SASAC have been satisfied.
- The Composite Document is expected to be dispatched on or before the 1 April.
- Based on precedents for the privatisation of PRC incorporated companies, absent a tendering condition, payment is expected around the third week of May, on the assumption the vote gets up.
Uniti’s Revised A$5.00 Offer from Morrison/Brookfield
- The Morrison/Brookfield’s revised offer is A$5.00 cash per share which is in line with the offer from the Connect consortium. At last close, the gross spread is 7.8%.
- The Board has decided to engage with Morrison/Brookfield but not with the Connect consortium. The Connect Consortium is said to have walked away, according to press reports.
- Nevertheless, the emergence of another bidder cannot be ruled out as Uniti Group Ltd (UWL AU)’s recurring revenues, cash flows and strong balance sheet is enticing for private equity bidders.
Belle Fashion Pre-IPO – The Positives – Try Walking in My Shoes
- Belle Fashion (BF) aims to raise around US$1bn in its Hong Kong listing, which would mark its return to the stock market after five years.
- Belle Fashion is the largest China-based fashion footwear and apparel group based on 2020 retail sales value, according to Frost & Sullivan (F&S).
- In this note, we will talk about the positive aspects of the deal.
Kimly: A Yummy, Undervalued Re-Opening F&B Play in Singapore
- We believe Kimly is a yummy, undervalued re-opening, F&B play in Singapore.
- With Singapore increasingly reopening for travel and reducing various COVID related restrictions, this could have a positive impact on the company’s F&B business.
- As such, we have a positive view of Kimly and we believe this stock is well poised to outperform the market in the next 6-12 months.
JD Health 2H2021: Healthy Results with More Than 60% Top Line Growth
- JD Health (6618 HK) reported results on Monday. Revenue grew 60.7% YoY to RMB17.0bn (vs consensus RMB14.9bn) while OP losses expanded to RMB808m from RMB48m a year ago.
- Similar to 1H2021, huge share-based payment expenses were the reason for increase in Operating losses, excl. these, JDH made a healthy OP of RMB1.8bn, an OPM of 10.4%.
- JDH’s online healthcare business is still at an early stage and the company has taken several initiatives to explore more opportunities and capitalise on digital transformation in the healthcare sector.
Thailand Casino Legalization Prospects Boost Las Vegas Sands Targeting of Its Third Asian Nation IR
- Non-Casino Thailand could be starting to get serious about legalizing casinos. Demos are solid if they make the move.
- Las Vegas Sands, seems the prime candidate to become the first mover if that market does make the major legislative move.
- LVS CEO Goldstein said last week that the company was engaged in serious talks with a possible third Asian nation on a major IR move there.
Belle Fashion Pre-IPO – The Negatives – You’ll Stumble in My Footsteps
- Belle Fashion (BF) aims to raise around US$1bn in its Hong Kong listing, which would mark its return to the stock market after five years.
- Belle Fashion is the largest China-based fashion footwear and apparel group based on 2020 retail sales value, according to Frost & Sullivan (F&S).
- In this note, we’ll talk about the not so positive aspects of the deal.
Kraft Heinz: Lackluster Strategic Positioning
- Kraft Heinz is once again one of the worst performers in its peer group.
- The current strategy to improve profitability and free cash flow does not offer a radical solution to the company’s weak strategic positioning.
- The company has some of its strongest brands, but it is a long and painful process.
Before it’s here, it’s on Smartkarma
