In today’s briefing:
- Oz Minerals Rejects BHP’s Opportunistic Foray – Expect More
- Inpex (1605 JP) – Earnings, Forecasts and a BIGLY Buyback
- Inpex (1605) | Blockbuster Buyback
- Foosung: Excessive Decline in Share Price Due to Spin-Off & IPO of Its Foosung Global Subsidiary
Oz Minerals Rejects BHP’s Opportunistic Foray – Expect More
- Early 8 August, OZ Minerals Ltd (OZL AU) announced it had rejected BHP Group Ltd (BHP AU)‘s indicative acquisition proposal at A$25.00/share, after BHP had bought less than 5%.
- The Board took a quick look over the weekend and decided “the Indicative Proposal significantly undervalues OZ Minerals” and rejected it out of hand.
- It has been an obvious deal for years. This may not be BHP’s last go, but they will probably need to pay more like A$30/share to get it.
Inpex (1605 JP) – Earnings, Forecasts and a BIGLY Buyback
- Today Inpex Corp (1605 JP) announced Q2 earnings (results, presentation), a revised full-year forecast due to higher crude and lower yen, an 11%-above-guidance dividend, and a big buyback.
- The buyback is for up to 120mm shares spending up to ¥120bn, to run through year-end. Practically speaking, it is limited to 80mm shares or so at current price.
- This should be a non-negligible portion of Real World Float, and I expect the buyback to have impact over the next five months.
Inpex (1605) | Blockbuster Buyback
- Inpex reported strong Q2 financial results with operating income rising 161% to ¥584 billion
- The company revised its full-year OP guidance by 23% to ¥1,133 billion. It is still conservative
- Inpex also announced a blockbuster buyback of 120 million shares, or 8.65% of its outstanding capital
Foosung: Excessive Decline in Share Price Due to Spin-Off & IPO of Its Foosung Global Subsidiary
- On 4 August (after market close), it was reported that Foosung Co plans to IPO its subsidiary Foosung Global. The timing is to complete the IPO in 2023.
- After this news came out, Foosung’s share price has declined by 17%. Since its share price peak in May 2022, its share price has declined by 42%.
- Recent share price decline has presented a more attractive investment opportunity. Foosung is currently trading at EV/EBITDA multiple of 7.7x in 2022, which is much lower than 20.9x in 2021.
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