In today’s briefing:
- Mergers, Acquisitions and Potential S&P/ASX Index Ad Hoc Inclusions
- Orora Limited Placement – Large Deal to Digest, Although Seems Well Flagged and Accretive
- Kinatico Ltd – The Power of SaaS Drives H2 and FY23 Profit
Mergers, Acquisitions and Potential S&P/ASX Index Ad Hoc Inclusions
- There are a bunch of stocks that are constituents of the S&P/ASX family of indices and could go private or merge prior to the next scheduled rebalance in December.
- That will lead to ad hoc inclusions for the S&P/ASX 200 (AS51 INDEX) and could also lead to ad hoc inclusions for the S&P/ASX 50 and S&P/ASX 100 indices.
- There is a fair amount of short interest on some of the potential inclusions and short covering due to index inclusion could take the stocks higher.
Orora Limited Placement – Large Deal to Digest, Although Seems Well Flagged and Accretive
- Orora Ltd (ORA AU) is looking to raise A$1,345m (~US$870m) via a primary placement and an entitlement offer to partially fund its acquisition of Saverglass.
- While the exact size/target of an acquisition wasn’t explicitly mentioned earlier, the firm had discussed its potential use of M&A to grow its North American/Europe regions.
- Including the entitlement offer, the deal would represent 212 days of three month ADV and add 58.9% to the firm’s total shares outstanding.
Kinatico Ltd – The Power of SaaS Drives H2 and FY23 Profit
- Kinatico Ltd (ASX:KYP) is a ‘Know Your People” regtech company providing workforce compliance monitoring and management technology and services.
- KYP has reported FY23 NPAT of $0.237m, an increase of 116% on the previous corresponding period (pcp), the company’s best-ever result.
- On an adjusted basis (for non-cash items), NPAT was $0.75m, a turnaround of $1.5m on the prior period while the gross margin and EBITDA margin hit record levels of 65.7% and 11.2% respectively.
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