In today’s briefing:
- ANZ’s Equity Raise Successful, Trading at TERP, and STILL Cheap To Peers
- Link Admin And Dye & Durham Agree On Terms
- Link and DND Shake Hands at A$4.81
- Cooper Investors Australian Equities Fund Quarterly Update – June 2022
ANZ’s Equity Raise Successful, Trading at TERP, and STILL Cheap To Peers
- ANZ got about half its equity raise done, with the shortfall bookbuild only being 5% of the institutional total and clearing above TERP. Now the retail rights.
- Risk management mechanisms suggest rights trade expensive to stock near-term, then cheapen, as ANZ shares experience some selling pressure from arbs.
- But ANZ is cheap. Relative weakness on FY2-FY3 EPS forecasts has contributed to 25% underperformance vs Peers since January but Relative Multiple Deterioration has contributed more.
Link Admin And Dye & Durham Agree On Terms
- Link Administration (LNK AU) announced it has agreed to Dye & Durham’s latest $4.81/share offer, which is 13% below its initial $5.50/share approach last December.
- Link shareholders may also receive an additional A$0.13 from the sale of the Banking and Credit Management (BCM) business under the latest offer.
- This transaction is still subject to Australian Competition and Consumer Commission clearance, which should happen once D&D undertakes to offload its GlobalX ops.
Link and DND Shake Hands at A$4.81
- Link Administration (LNK AU) has entered a revised scheme implementation deed with Dye&Durham/DND at A$4.81 per share. The scheme meeting will be held in mid-August.
- Shareholders will be supportive due to deal fatigue, and the offer price is 11% above the undisturbed price and at the low end of the original IE valuation range.
- Regulatory approvals are a key risk. DND is presumably confident in its undertakings to gain ACCC approval. At last close, the gross spread is 7.8%.
Cooper Investors Australian Equities Fund Quarterly Update – June 2022
- Cooper Investors Pty Limited (“CI”) is a specialist equities fund manager with funds under management of approximately A$13 billion.
- Both stocks and bonds performed poorly over the last 12 months, pulling back 10 year returns to single digit levels.
- Only physical commodities offered respite, a function of the inflationary forces driving their prices higher.
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