In today’s briefing:
- Offer Becomes Unconditional
- National World/Reach: Possible Offer
- I-Tail Corporation IPO: The Bear Case
- I-Tail Corporation Pre-IPO – Peer Comparison Update – Adding in Its Only Local Peer
Offer Becomes Unconditional
- PMI has obtained acceptances of 82.59%, waives the 90% acceptance condition and extends the acceptance period until 25 November (settlement on 2 December).
- SWMA shares are trading at an all-time high of SEK 115.8. Gross spread is 0.17% (estimated annual return is 2.52%). The market discounts that the offer will be successful.
- Done deal. PMI is ready to wait until claiming final victory, quite possibly in the further extended acceptance period. It should be able to squeeze-out and delist. Accept offer.
National World/Reach: Possible Offer
- SPAC National World confirmed that it is at the early stages of exploring a possible offer for UK’s largest local publisher Reach (RCH LN), whose share price had dropped 64% YTD.
- The approach comes when Reach seems to be turning a corner and digital is growing, more specifically data-led initiatives. The top ten shareholders own 61% of the share capital.
- A good offer should be tabled to convince the suffering top ten shareholders (61% in aggregate). My TP is 163.4p (comparables/DCF). The shares are trading at 4.0x NTM P/E.
I-Tail Corporation IPO: The Bear Case
- I-Tail (ITC TB), Thai Union Group (TU TB)’s pet care division, has started pre-marketing an up to US$600 million SET IPO, according to press reports.
- In I-Tail Corporation IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on its under-representation in the dog food category (largest pet food category), margins at or near the peak and declining FCF margin.
I-Tail Corporation Pre-IPO – Peer Comparison Update – Adding in Its Only Local Peer
- I-Tail, an OEM in the wet pet food category, aims to raise around US$500m in its Thailand IPO. It is a subsidiary of Thai Union Group (TU TB) .
- As per ITC, it was the number two pet food company in Asia and in the top ten pet food companies globally. ITC expertise lies in fish-based wet pet food.
- In our previous notes, we have looked at past performance, undertaken a peer comparison and spoken about valuation. In this note, we will add in its recently listed local peer.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
