In today’s briefing:
- Kagome (2811) – Well-Flagged Slightly Dilutive Equity Financing for High ROIC Purchase
- Hyundai Motor India IPO Preview
- Infratil Placement – Riding the AI Wave, but Deal Timing Seems Opportunistic
Kagome (2811) – Well-Flagged Slightly Dilutive Equity Financing for High ROIC Purchase
- In January, Kagome Co Ltd (2811 JP) announced an acquisition of an additional 50% stake in a US equity affiliate. It is transformational. Incremental ROIC is truly excellent.
- At the time, they said they’d finance the purchase with a bridge loan but would sell treasury shares for ¥25bn or less to cover it. They announced the shelf then.
- Friday they announced the Offering. Today shares fell 8+%. This is now cheap.
Hyundai Motor India IPO Preview
- Hyundai Motor India is getting ready to complete its IPO in 2H 2024. Hyundai Motor India plans to offer up to 142.2 million shares (17.5% stake) to investors.
- Hyundai Motor (005380 KS) currently owns a 100% stake in Hyundai Motor India. The IPO of Hyundai Motor India could raise as much as US$3 billion.
- If Hyundai Motor India (HMI) is valued at US$25 billion and HMC sells a 17.5% stake in the company, HMC’s remaining stake in HMI would be worth nearly US$21 billion.
Infratil Placement – Riding the AI Wave, but Deal Timing Seems Opportunistic
- Infratil Ltd (IFT NZ) aims to raise around US$613m (NZ$1bn) via an institutional placement.
- Proceeds from the placement will be used to fund IFT’s share of capex for its data center arm, CDC.
- In this note, we will talk about the placement and run the deal through our ECM framework.
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