In today’s briefing:
- (Mostly) Asia M&A, Mar 2024: Chilled & Frozen, TDCX, MMA Offshore, JSR, Roland DG, SciClone
- What the Baltimore Bride Collapse Means for Commodities
- Waaree Energies Pre-IPO – Riding the Anti-China US Wave
- Talos Energy Inc. – Targeting Free Cash Flow Waterfall in 2024
- Vitesse Energy, Inc. – Compounding Capital to Support Dividend Strategy
(Mostly) Asia M&A, Mar 2024: Chilled & Frozen, TDCX, MMA Offshore, JSR, Roland DG, SciClone
- For the month of March 2024, 8 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$4bn.
- The average premium for the new transactions announced (or first discussed) in March was ~55%. The average premium YTD is ~39%.
- This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.
What the Baltimore Bride Collapse Means for Commodities
- Goldman also highlights that cyclical risks from the business cycle are fading.
- An upswing in the global industrial cycle typically leads to broad metals upside over the next 12 months the investment bank added.
- According to data from PIERS, a trade flow analytics tool within S&P Global, Baltimore port held just 4% share of the total trade volumes on the East Coast compared with other major regional ports like New York, with a nearly 38% share according to S&P Global.
Waaree Energies Pre-IPO – Riding the Anti-China US Wave
- Waaree Energies is looking to raise up to US$400m in its upcoming India IPO.
- Waaree Energies is a solar PV module manufacturer in India with an aggregate installed capacity of 12 GW, as of Jun 2023.
- In this note, we talk about the company’s past performance.
Talos Energy Inc. – Targeting Free Cash Flow Waterfall in 2024
Talos’s FY24 operating plan prioritizes free cash flow generation. The midpoint of FY24 production guidance is nearly 40% above FY23 production, while the midpoint of the FY24 upstream capex budget is 7% lower than FY23.
Our modeling suggests the combination could generate $479 million of free cash flow in FY24, compared with $3 million in FY23.
The anticipated free cash flow waterfall could allow Talos to repay nearly $400 million of borrowings under the existing RBL credit facility.
Vitesse Energy, Inc. – Compounding Capital to Support Dividend Strategy
- Vitesse’s strategy is to compound cash flow derived from its diverse portfolio of oil-prone assets in the Bakken/Three Forks play to fund capital returns to shareholders and reinvest in the underlying asset base.
- Management’s preferred method for returning cash is through a sustainable fixed dividend, currently $2.00/share annualized.
- The dividend is sacrosanct and lies at the heart of management’s capital allocation model.
💡 Before it’s here, it’s on Smartkarma
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