In today’s briefing:
- BHP/Anglo American: A Decarbonising Solution
- Korea Value-Up Guidelines Release Date Is Set for May 2nd
- Taiyo Pacific Overbids Brother for Roland DG (6789)
- Quiddity Leaderboard ES50 Sep 24: Engie Gets Closer to a US$1.1bn Index Inflow
- I Squared & TDR Win the Long Battle for Applus at the Final Auction
BHP/Anglo American: A Decarbonising Solution
- BHP (BHP AU)‘s all-scrip unsolicited Offer for Anglo American (AAL LN), zeroes in on AAL’s copper assets as demand for the metal increases for use in EVs and renewable power.
- The proposal has been labelled highly opportunistic by some shareholders and South African politicians. And that the value of AAL’s Chilian/Peruvian copper mines are obscured by its sprawling business interests.
- The Offer remains conditional and non-binding. A transaction hinges off AAL spinning off its South African iron ore and platinum businesses. Expect AAL to reject terms, but remain engaged.
Korea Value-Up Guidelines Release Date Is Set for May 2nd
- Chosun reports Korean financial authorities advance Value-up plan guidelines to May 2nd, citing momentum decline post-election. Chosun’s credibility enhances report validity.
- Companies will commence Value-up-related disclosures in alignment with the guidelines within May. A dedicated Value-up website is set to launch in May.
- The May 2nd guideline release date is crucial for Value-up momentum trading. Anticipate heightened volatility in Value-up stocks approaching this date.
Taiyo Pacific Overbids Brother for Roland DG (6789)
- Originally, Brother Industries (6448 JP) wanted to buy Roland DG Corp (6789 JP). Roland invited others to bid, didn’t tell Brother, then said Taiyo Pacific’s ¥5,035 bid won.
- That was low. Weeks later, Brother lobbed a ¥5,200 overbid. They are going through the approvals process but it isn’t clear Brother is negotiating.
- Taiyo has extended and extended and shown up in interviews. Now it has overbid at ¥5,370.
Quiddity Leaderboard ES50 Sep 24: Engie Gets Closer to a US$1.1bn Index Inflow
- The ES50 Index is one of the most highly-tracked and followed indices in Europe and the annual index review takes place in September every year.
- This annual index rebal event usually results in some of the most significant index flow events in Europe every year, typically amounting to billions of dollars of flows.
- In this insight, we take a look the names leading the race to become ADDs/DELs for the upcoming index review in September 2024.
I Squared & TDR Win the Long Battle for Applus at the Final Auction
- I Squared and TDR presented a final offer price of €12.78/share in cash, marking a 16.2% increase over their prior bid and surpassing Apollo Global Management’s final offer of €12.51/share.
- The winning offer values the share capital at €1,649 million (7.3x EV/Fwd NTM EBITDA, 13.2x Fwd P/E), 34% above Apollo’s initial offer.
- Gross spread is 0.2%. Settlement could happen around 27 May, with 3.7% estimated annual return.
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