In today’s briefing:
- Uniti Group (UWL AU) And Morrison & Co Enter Into “Exclusive Discussions”
- Yashili’s Potential Pre-Conditional Privatisation Offer from Mengniu
- MFE/Mediaset España: Second Time Around
- PT Nippon Indosari Corpindo (ROTI) – Bringing the Bread Home
- Pola Orbis: Our Preferred Choice Leading up The Reopening of Japan to Foreign Tourists
- Askul Corp – Q3 22 Results Reaction: Margin Concerns Hold Back Shares Despite Beat
- Ferretti Group Pre-IPO: Peer Comp and Valuation
- SHR: Expect Rapid Recovery in 2022
- SBUX: Howard Schultz is BACK
- Green Tea Group Pre-IPO – Growing for the Sake of Growth
Uniti Group (UWL AU) And Morrison & Co Enter Into “Exclusive Discussions”
- South Australian telecommunications company Uniti Group Ltd (UWL AU) has announced it has entered into “exclusive discussions” with infrastructure investor HRL Morrison & Co for a potential acquisition.
- Morrison & Co’s non-binding proposal has an indicative price of $4.50/share, valuing Uniti at A$3.1 billion.
- The proposal has an exclusivity period up to 22 April.
Yashili’s Potential Pre-Conditional Privatisation Offer from Mengniu
- Yashili International Holdings (1230 HK) announced its controlling shareholder, China Mengniu Dairy Co (2319 HK), is in discussions regarding its holdings in Yashili and several potential transactions.
- If the transactions proceed, the potential privatisation offer is HK$1.20 per Yashili share, a 31.9% premium to the last close price of HK$0.91 (prior to the trading halt).
- The potential transactions are subject to a number of pre-conditions and conditions. We think the potential offer is attractive.
MFE/Mediaset España: Second Time Around
- Mediaset SpA (MS IM) intends to launch a takeover bid for Mediaset Espana Comunicacion S (TL5 SM). Consideration is €1.86 + 4.5 MFEA IM (€5.613 based on €0.834/ordinary share A).
- 12% premium. Conditional on reaching 90% of voting rights (excluding those already controlled by MFE, implies 39.88%). Cash component to be fully funded by target’s net cash position.
- The offer price seems reasonable. Gross spread is 7.3%, an interesting level considering that the offer will likely be successful and Mediaset España delisted in less than 6 months.
PT Nippon Indosari Corpindo (ROTI) – Bringing the Bread Home
- Indonesia’s leading mass-market bread producer PT Nippon Indosari Corpindo (ROTI IJ) booked a strong set of FY2021, with general trade driving growth, and greater efficiencies enhancing margins and FY2021 growth.
- The company continues to improve its product mix and distribution to cater for more home consumption and also continues to push out into East and West Indonesia geographically.
- Higher wheat prices are a risk but the company has bought forward and will increase prices if needs to be offset higher cost. Valuations are attractive versus history.
Pola Orbis: Our Preferred Choice Leading up The Reopening of Japan to Foreign Tourists
- With Omicron under control, Japan is expected to relax home quarantine requirements for foreign travellers some time or the other.
- Meanwhile, Google Mobility data hints that domestic customers are starting to head back to places like shopping centres, suggesting an improvement in demand conditions.
- Based on valuation and the price performance trend, long time underperformer Pola Orbis Holdings (4927 JP) seems like the best option to capitalise on the reopening of Japan to foreign tourists.
Askul Corp – Q3 22 Results Reaction: Margin Concerns Hold Back Shares Despite Beat
- Q3 22 results were in-line/ahead of consensus expectations but shares fell 7% today anyway
- Operating profit fell 10% as improvements in operating losses for new businesses like Lohaco and logistics were not enough to make up for higher spending in the core B2B segment
- Despite the decline, Askul shares have largely outperformed peers YTD on optimism over the planned launch of quick commerce business Yahoo!Mart announced in late January
Ferretti Group Pre-IPO: Peer Comp and Valuation
- Ferretti is a leading yacht builder based in Italy. The company is looking to raise up to USD 300m via a Hong Kong listing.
- In our previous note, we looked at the company’s key product segments, operating metrics, financials, and industry.
- In this note, we compare the company with its close peer and provide our thoughts on valuation.
SHR: Expect Rapid Recovery in 2022
- We maintain BUY rating and raise TP by +25% to Bt4.50 derived from 1x PBV’22E, to reflect better outlook post-COVDID crisis.
- About 98%of its hotel properties have already resumed operation by the late last year.This along with complete opening up of international borders will be the key earnings drivers for 2022
- Maldives and Thailand international demand has shown growing trend since 2Q21 and been in continuing growth in 1Q22 following reopening countries especially in UK and Maldives.We expect strong earnings recovery
SBUX: Howard Schultz is BACK
- A quick memo this morning, as I perused the headlines and found that Howard Schultz, founder and two-time CEO of Starbucks, will be coming back to the company
- The transition will be effective on April 4th, and Howard is expected to assist with succession planning
- I am a big fan of Schultz, having read both ‘Pour Your Heart into It’ and ‘Onward’ in my younger years
Green Tea Group Pre-IPO – Growing for the Sake of Growth
- Green Tea Group (GT HK) is looking to raise about US$150m in its upcoming Hong Kong IPO.
- Green Tea Group is a restaurant chain operator for fusion cuisine in China.
- As of the latest practicable date (LPD), it had a restaurant network of 236 restaurants covering 18 provinces, four municipalities and three autonomous regions in the PRC.
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