In today’s briefing:
- S&P/ASX Index Rebalance Preview: Changes from Now to June
- Mincor Resources (MCR AU): Wyloo’s A$1.40 Unconditional Takeover Offer
- Mincor: Twiggy’s On-Market Takeover
- Harita Nickel IPO: Valuation Insights
- Morning Views Asia: Sino-Ocean Service, Vedanta Resources
- Vulcan Materials Company: Detailed Credit Analysis & Financial Strength Evaluation Report
- FMC Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- CF Industries Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- WestRock Company: Detailed Credit Analysis & Financial Strength Evaluation Report
S&P/ASX Index Rebalance Preview: Changes from Now to June
- There could be an addition to the S&P/ASX 100 Index and S&P/ASX 200 (AS51 INDEX) in April following OZ Minerals Ltd (OZL AU)‘s acquisition by BHP Group Ltd (BHP AU).
- Then there could be another change for the S&P/ASX 200 (AS51 INDEX) at the regular rebalance in June.
- Passive trackers will need to trade between 4.5-18 days of ADV on the potential adds/ deletes. Short interest has started to increase on a couple of stocks.
Mincor Resources (MCR AU): Wyloo’s A$1.40 Unconditional Takeover Offer
- Wyloo has launched an unconditional off-market takeover bid for Mincor Resources NL (MCR AU) at A$1.40 per share, a 34.6% premium to the undisturbed price. The offer opens 5 April.
- In certain aspects the offer is attractive. The offer values Mincor at a premium to peer and precedent transaction EV/Resource and EV/Reserve multiples.
- However, the offer is at a discount to recent share prices and price targets. Rival bidders (BHP Group Ltd (BHP AU) or IGO Ltd (IGO AU)) could also emerge.
Mincor: Twiggy’s On-Market Takeover
- Nickel explorer Mincor Resources NL (MCR AU)‘s board urges shareholders to take no action in response to the on-market takeover from Andrew Forrest’s backed Wyloo Metals.
- Wyloo is offering A$1.40/share. The offer period commences on the 5 April and runs until the 8 May – unless extended. However, Wyloo’s broker is already standing in the market.
- Wyloo, together with associates, control 19.87% of the voting power in Mincor. Currently trading 5.7% through terms
Harita Nickel IPO: Valuation Insights
- PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ), an Indonesian nickel play, has launched an IDX IPO to raise US$1 billion. Book building ends on 24 March.
- We previously discussed the IPO in Harita Nickel IPO: The Bull Case and Harita Nickel IPO: The Bear Case.
- In this note, we discuss valuation. Our analysis suggests that Harita is fairly valued at the IPO IPO price range of IDR1,220-1,250 per share. We would participate in the IPO.
Morning Views Asia: Sino-Ocean Service, Vedanta Resources
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
Vulcan Materials Company: Detailed Credit Analysis & Financial Strength Evaluation Report
- Vulcan Materials Company is a well-known producer, distributor, and seller of construction materials.
- The company did continue its reliable cash generation and careful capital deployment and its free cash flow conversion has been above 90% on average over the last four years.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
FMC Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- FMC Corporation is a major agricultural sciences player in the U.S.
- The company has been witnessing high volume growth and its aggressive pricing has helped build a strong financial position.
- Agricultural markets remain strong with high commodity prices, expanding cropland, and optimistic grower sentiment.
CF Industries Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- CF Industries is one of the largest producers of nitrogen products across the globe.
- CF’s overall performance was fairly good against the backdrop of a continually tight global supply-demand balance for nitrogen.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
WestRock Company: Detailed Credit Analysis & Financial Strength Evaluation Report
- WestRock Company is one of the largest providers of fiber-based paper and packaging solutions across the globe.
- The company has been on the receiving end of strong economic volatility and this has affected its financial performance in 2022.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
💡 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