In today’s briefing:
- Abacus Offers ASK – The Back End Trade Is Still Better
- ASK Listing – Asset Quality Seems to Trump It’s Peer, However Settlement Period Is Long
- Austal (ASB AU): Attracting Takeover Interest
- CSL Ltd (CSL AU): FY23 Guidance Cut Drags Near-Term Prospect; Long-Term Growth Drivers Still Intact
Abacus Offers ASK – The Back End Trade Is Still Better
- This morning, Abacus Property (ABP AU) units were halted for trading and the Institutional Offer for Abacus Storage King (future ASK AU) units were launched.
- The Offer is underwritten by Barrenjoey and Morgan Stanley. The Institutional Offer will be completed by Friday, and results announced Monday 19 June, with trading halt lifted.
- Then the Retail portion of the Offer will be conducted til 27 July. EGM the same day. Delayed settlement trading of ASK and New ABP (ABG AU) will start 1Aug.
ASK Listing – Asset Quality Seems to Trump It’s Peer, However Settlement Period Is Long
- Abacus Property (ABP AU) is looking to de-staple Abacus Storage King (ASK AU) , its self-storage business. The offer will be underwritten by Morgan Stanley and Barrenjoey.
- Offering 1 ASK share for every 5.6 ABP share, the REIT is looking to raise A$225m (US$153m) via offering 159.6m shares at a A$1.41-1.47/share price band.
- The deal is effectively an IPO, and after having been in the making for some time now, it is well flagged as well.
Austal (ASB AU): Attracting Takeover Interest
- Austal Ltd (ASB AU) is drawing takeover interest from Cerberus Capital, according to AFR. Cerebus joins Arlington Capital Partners and Bondi Partners as rumoured suitors, increasing the bid odds.
- Takeover interest in Austal is driven by the desire to capitalise on the opportunities presented by the AUKUS defence pact between Australia, the US and the UK.
- Andrew Forrest’s 19.34% stake can make or break a deal. Peer multiples point to an offer of at least A$2.80, a 22% premium to the last close.
CSL Ltd (CSL AU): FY23 Guidance Cut Drags Near-Term Prospect; Long-Term Growth Drivers Still Intact
- CSL Ltd (CSL AU) has reduced its profit projection for FY23 due to higher-than-anticipated adverse impact from Fx. The company now expects a Fx headwind of $230–250M from $175M earlier.
- After considering modest recovery of CSL Behring gross margin and generic competition for Ferinject in Europe, CSL expects FY24 NPATA to grow 13–18% to $2.9–3.0B at constant currency.
- All eyes are now on the U.S. launch of the one-time gene therapy Hemgenix for Hemophilia B. CSL expects the first patient to take Hemgenix within the next few weeks.
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