In today’s briefing:
- FTSE EPRA Nareit Index Rebalance: One Deletion for Australia
- Reinhart Edges Stokes In Tussle For Warrego Energy
- (Mostly) Asia M&A Nov 2022 Roundup: Origin, Perpetual, Mori Trust, Uzabase, Chip Eng, Golden Energy
- Warrego (WGO AU) In a Three-Way Tussle with Hancock’s A$0.23 Offer
FTSE EPRA Nareit Index Rebalance: One Deletion for Australia
- There are no adds for the FTSE EPRA Nareit Developed Asia Index in December. The only deletion is Home Consortium Ltd (HMC AU).
- Passive trackers are estimated to sell 12x ADV on Home Consortium Ltd at the close 16 December. Short interest is nearly the same and there could be some covering.
- Home Consortium Ltd (HMC AU) has underperformed its peers over the last 12 months and still trades more expensive to its peer group.
Reinhart Edges Stokes In Tussle For Warrego Energy
- Gina Rinehart’s Hancock Prospecting has joined the bidding war for Warrego Energy (WGO AU) with a A$0.23/share, all cash, off-market Offer versus Beach Energy (BPT AU)‘s management-backed A$0.20/share Scheme Offer.
- Hancock has already lodged the Bidder’s Statement. There is no minimum acceptance condition attached to this offer.
- Warrego currently recommends Beach’s Offer, subject to no superior proposal emerging. Beach has matching rights under the SID entered into on the 14 November.
(Mostly) Asia M&A Nov 2022 Roundup: Origin, Perpetual, Mori Trust, Uzabase, Chip Eng, Golden Energy
- For the month of November, 11 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$20bn.
- The average premium for the new deals announced (or first discussed) in November was ~52%, and a year-to-date average of 41%.
- This compares to the average premium for all deals in 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 33%, 31%, and 31.5% respectively.
Warrego (WGO AU) In a Three-Way Tussle with Hancock’s A$0.23 Offer
- Hancock’s offer of A$0.23 is at a 15% premium to Beach Energy (BPT AU)’s A$0.20 offer and a 21.1% premium to Strike Energy (STX AU)’s scrip value on 29 November.
- The Hancock off-market offer for Warrego Energy (WGO AU) has no minimum acceptance condition or a material adverse change clause. The offer closes on 31 January 2023.
- STX could be Hancock’s next logical target to facilitate Perth Basin consolidation. Between STX and BPT, BPT is more likely to return with an improved offer.
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