In today’s briefing:
- Currys Rejects Second Elliot Approach
- NPN X PRX Discount Update Discounts Widen to Pare Back Strong YTD Gains
Currys Rejects Second Elliot Approach
- Currys has rejected a second proposal from Elliot, at 67p/share, 8% higher. The Board rejected this second proposal, stating it undervalued the company and its potential for future growth.
- My fair value estimate is 76p/share (FY24e PE of 10.2x vs 9.1x currently, and FY25e PE of 8.9x vs 7.9x currently). JD.com’s surely negotiating a friendly offer ahead of 18 March.
- A major shareholder advises not to engage with Elliot unless a 75p/share proposal is tabled. JD.com, a trade buyer, should be capable of meeting the Board’s expectations. Reiterate long.
NPN X PRX Discount Update Discounts Widen to Pare Back Strong YTD Gains
- During the last 3 weeks, Naspers and Prosus have come under pressure relative to their underlying portfolios.
- Since reaching a new all-time low on the 12th of February, Naspers’ discount has widened by 6 percentage points to 40.7%.
- Prosus’ discount has widened 5.7 percentage points to 35.4%. Naspers and Prosus are down 9% and 8% respectively, relative to a decline of 1.9% for Tencent in ZAR.
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