In today’s briefing:
- Merger Arb Mondays (19 Sep) – Link Admin, Ramsay, Alliance, Genex, Moya, Singapore Medical, VNET
- OZ Minerals Could Get an Improved Offer from BHP
- That’s It Then As Link Admin Rejects D&D’s Revised Terms
- Imugene (IMU AU) Placement: Extended Runway for Clinical Programs Pipeline at Modest Equity Dilution
Merger Arb Mondays (19 Sep) – Link Admin, Ramsay, Alliance, Genex, Moya, Singapore Medical, VNET
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand and Chinese ADRs.
- Highest spreads – Link Administration (LNK AU), Alliance Aviation Services (AQZ AU), 21Vianet Group (VNET US), Ramsay Health Care (RHC AU), Infomedia Ltd (IFM AU), Genex Power Ltd (GNX AU).
- Lowest spreads – Nitro Software Ltd (NTO AU), Tyro Payments (TYR AU), Nearmap Ltd (NEA AU), MACA Ltd (MLD AU), Xiamen International Port H (3378 HK), Link Net (LINK IJ).
OZ Minerals Could Get an Improved Offer from BHP
- Bloomberg reported that BHP Group Ltd (BHP AU) has been considering raising its bid for OZ Minerals Ltd (OZL AU). OZ is pushing BHP to increase its offer to A$30.
- The OZ Board has a strong justification for a higher offer as BHP’s acquisition of OZ would tick the boxes of future-facing commodities and potential operational synergies.
- Rio Tinto Ltd (RIO AU) recently increased its bid to minority shareholders of Turquoise Hill Resources (TRQ CN). This increases the probability that BHP will return with a sweetened offer.
That’s It Then As Link Admin Rejects D&D’s Revised Terms
- After 23 months of negotiations, various bids from various parties, culminating in a protracted on-again, off-again, negotiation with Dye & Durham, Link Administration (LNK AU) has called it a day.
- D&D arguably did the right thing and tabled a revised proposal to account for any enforcement process after the UK’s FCA raised redress payments. Link has rejected the revised terms.
- Link will now pursue an in-specie distribution of a minimum of 80% of Link’s shareholding in PEXA Group (PXA AU).
Imugene (IMU AU) Placement: Extended Runway for Clinical Programs Pipeline at Modest Equity Dilution
- Imugene Ltd (IMU AU) announced A$80 million institutional placement at A$0.20/ share, representing 11.1% discount to last close on September 9, 2022. Shares issued represent just 6.8% of existing shares.
- The company will have a pro-forma cash position of ~A$175 million on completion of the Placement, funding the company’s broad clinical pipeline of three platform technologies.
- For every two new shares subscribed for under the placement, Imugene intends to issue one free new option. The options issued will provide A$66 million in funding, if fully exercised.
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