In today’s briefing:
- Coforge’s $1.56 Billion Bet: A Game-Changer or a Risky Move?
- M&A For Korea Zinc: Seoul Central District Court Makes Important Rulings
- Naigai Trans Line (9384 JP): IA Partners’ JPY4,065 Tender Offer
- Acelyrin and Alumis Merger Faces Activist Challenges Amid Tang’s Higher Offer and Market Skepticism
Coforge’s $1.56 Billion Bet: A Game-Changer or a Risky Move?
- Coforge (COFORGE IN)‘s $1.56 billion deal with Sabre positions it as a major player in travel technology, but concerns over Sabre’s financial stability create potential risks for long-term execution.
- Acquisitions of Rythmos and TMLabs align with Coforge’s strategy to enhance cloud, data, and enterprise IT capabilities, strengthening its market position in airline and ServiceNow implementation services.
- While analysts recognize strong revenue visibility, Sabre’s $5.1 billion debt and negative net worth raise cash flow concerns, leading to a divided outlook on Coforge’s future profitability and risk exposure.
M&A For Korea Zinc: Seoul Central District Court Makes Important Rulings
- On 7 March, the Seoul Central District Court ruled that it is reasonable for Korea Zinc to maintain the concentrated voting system, which should favor Chairman Choi and his allies.
- On the other hand, the court also ruled that Korea Zinc was wrong to restrict Young Poong’s voting rights which should be favorable to MBK/Young Poong alliance.
- The fact that the court has allowed concentrated voting system would mean the M&A of Korea Zinc will continue.
Naigai Trans Line (9384 JP): IA Partners’ JPY4,065 Tender Offer
- Naigai Trans Line (9384 JP) has recommended a tender offer from IA Partners at JPY4,065 per share, a 62.3% premium to the last close.
- Despite being below the midpoint of the target IFA’s DCF valuation range, the offer is attractive compared to historical trading ranges and represents an all-time high.
- Given that the offer is reasonable, the required minority acceptance rate is attainable. The offer is from 10 March to 21 April, with payment on 28 April.
Acelyrin and Alumis Merger Faces Activist Challenges Amid Tang’s Higher Offer and Market Skepticism
- Acelyrin agreed to an all-stock merger with Alumis, valued at $2.2/share, requiring shareholder approval with 24% support.
- Tang’s $3/share cash offer was rejected; activists hold 11% stake, acquired near $2/share, with unclear agendas.
- ALMS merger has 62% support; Ayurmaya Capital holds 22% of ALMS, 9% of SLRN, and supports the merger.
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