In today’s briefing:
- Ecopro Materials IPO – Updated Thoughts on Valuation – Sentiment Has Gotten Worse
- Tietto (TIE AU): Zhaojin Makes An Offer
- Kum Yang – Submits An Agenda to Expand Issuance Limit of CB and BW to 10 Trillion Won
- Tietto Minerals (TIE AU): Zhaojin’s Conditional Off-Market Takeover Offer
- Bharat Petroleum – ESG Report – Lucror Analytics
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Ecopro Materials IPO – Updated Thoughts on Valuation – Sentiment Has Gotten Worse
- EcoPro Materials (ECO123 KS) is looking to raise up to US$469m in its Korean IPO.
- Ecopro Materials (EPM) manufactures and sells high-nickel precursors, one of the key materials for high-nickel cathode materials for secondary (rechargeable) batteries.
- In our previous notes, we covered the company’s performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we will share our updated thoughts on valuation.
Tietto (TIE AU): Zhaojin Makes An Offer
- SOE-Backed Zhaojin Mining Industry H (1818 HK), China’s fourth largest integrated gold producer, has tabled a non-binding Offer for Aussie-listed West African gold miner Tietto Minerals Ltd (TIE AU).
- The A$0.58/share cash Offer is a 36% premium to undisturbed. Zhaojin is seeking 50.1% of shares out, with 7.02% already held.
- Conditions include a raft of PRC and Côte d’Ivoire regulatory approvals. None of these should face opposition.
Kum Yang – Submits An Agenda to Expand Issuance Limit of CB and BW to 10 Trillion Won
- On 30 October, Kum Yang announced that it has submitted an agenda to expand the issuance limit of CB and BW to 10 trillion won.
- This increase in the limit of CB and BW issuance to 10 trillion won would mean potential capital raise through these methods that are nearly 2x its entire market cap.
- Kum Yang may be trying to raise large amount of capital (several trillion won) which could result in significant dilution risk for the existing shareholders.
Tietto Minerals (TIE AU): Zhaojin’s Conditional Off-Market Takeover Offer
- Tietto Minerals Ltd (TIE AU) has disclosed a conditional proposal from Zhaojin Mining Industry H (1818 HK) at A$0.58 per share, a 36.5% premium to the undisturbed price of A$0.425.
- The offer is conditional on China and Cote d’Ivoire regulatory approvals (should be forthcoming) and a 50.1% minimum acceptance condition (which can be waived).
- The offer is light compared to peer resource multiples and recent share prices. The presence of large Chinese shareholders is a stumbling block for a rival offer.
Bharat Petroleum – ESG Report – Lucror Analytics
Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We view Bharat Petroleum’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Material”, but Disclosure is “Adequate”.