In today’s briefing:
- Adani Group: GQG Bets Big; MSCI Index Impacts
- MBK & Unison Capital Trying to Take Osstem Implant Private: “Two Yards to Endzone”
- SHL Japan (4327 JP) Takeover – Illiquid, Easy, Non-Transparent, but a Done Deal
- SIAS Agrees The Widjaja Family’s Offer For Golden Energy Is Low-Balled
- IMM PE Lanches A Tender Offer on Hanssem
- Nitro Software Backs Potentia’s Offer
- SE600 Mar 23 Rebal: Final Changes and Historical Performance Analysis
Adani Group: GQG Bets Big; MSCI Index Impacts
- Post market close yesterday it was announced that GQG Partners (GQG AU) had invested INR 154.46bn (US$1.87bn) in four Adani Group companies via block deals.
- The blocks were at a discount of 4.3% for Adani Ports & Special Economic Zone (ADSEZ IN) to 12.2% for Adani Enterprises (ADE IN).
- There will be an increase in the free float for some Adani Group companies as a result of the blocks and there are implications for the stocks in indexes.
MBK & Unison Capital Trying to Take Osstem Implant Private: “Two Yards to Endzone”
- MBK Partners and Unison Capital are trying to take Osstem Implant (048260 KS) private. Currently, it is estimated that the MBK/Unison consortium has secured 88.7% stake in Osstem Implant.
- In the case of companies listed in KOSDAQ, if you have a stake of 90% or more, the company can generally proceed with discussions on delisting with the exchange.
- There is a high probability of delisting sometime in March/April under two different scenarios. The second scenario offers the remaining minority shareholders and arb traders potential for further alpha creation.
SHL Japan (4327 JP) Takeover – Illiquid, Easy, Non-Transparent, but a Done Deal
- The parent company of SHL Japan Ltd (4327 JP)‘s largest shareholder is buying out its main customer in Japan.
- This is an LBO/MBO situation, and friends and family get it to 63% or so. A tiny sliver from others gets it over the hump.
- Should get done easily, but the corporate governance here is not encouraging. Yes, a premium, but no explanation, and it’s a bit low.
SIAS Agrees The Widjaja Family’s Offer For Golden Energy Is Low-Balled
- The Widjaja family’s Offer for Golden Energy (GER SP) back in November has been derided in the press, one outspoken minority shareholder, and (a loosely veiled statement) by Singapore RegCo.
- Now the Securities Investors Association (Singapore) (SIAS) has thrown its hat into the ring and has called on GEAR to improve the Offer for shareholders.
- The long stop date was surprisingly pushed back five months to satisfy the Exit offer conditions. This delay should avail the family of ample time to bump terms.
IMM PE Lanches A Tender Offer on Hanssem
- IMM private equity fund launched a tender offer on Hanssem Co Ltd (009240 KS) and its share price surged by 19.7% to reach 53,700 won today.
- IMM is currently the largest shareholder in Hanssem with a 27.7% stake in the company. IMM’s stake in Hanssem will rise to about 36% if this tender offer is successful.
- Hanssem’s share price still 2.4% below the tender offer price of 55,000 won. In the coming days, we believe the share price will reach closer to the tender offer price.
Nitro Software Backs Potentia’s Offer
- As expected, Nitro Software Ltd (NTO AU)‘s board has unanimously backed Potentia’s three-tiered revised Offer.
- On the 23rd of February, Potentia bumped with a $2.17/share unconditional Offer, increasing to $2.20 if they get to 75% interest, and $2.25 if ≥25% tendering opt for scrip.
- Where does this leave Alludo? Nitro reckons Alludo can’t raise their offer because of ASIC’s Truth In Takeovers policy. But Alludo do pocket the A$5mn break fee for their troubles.
SE600 Mar 23 Rebal: Final Changes and Historical Performance Analysis
- The March 2023 regular rebalance index changes for the SE600 index and the EUROSTX index were announced yesterday.
- There are 8 ADDs/DELs for the SE600 index and 5 ADDs and 2 DELs for the EUROSTX index.
- In this insight, we take a closer look at the index flow expectations and the historical performance of SE600 and EUROSTX Rebalance events.
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