In today’s briefing:
- Local Observations on Carlyle’s Possible Buyout of Hanon Systems
- Eureka Group (EGH AU): Aspen’s Offer Is A Non-Starter
- Iberdrola/Avangrid: Logical Move
Local Observations on Carlyle’s Possible Buyout of Hanon Systems
- Carlyle’s renewed interest in acquiring Hanon Systems is evident from recent local market news, indicating outreach to bankers for a potential buyout, as confirmed by a local brokerage.
- Carlyle eyes majority control of Hanon Systems, targeting 50.5% from Hahn & Co and 19.5% from Hankook Tire. Carlyle may extend a tender offer for the remaining 30%.
- Still early stages; no solid info on deal certainty or specifics. Limited immediate trading opportunities, but worth monitoring as it progresses.
Eureka Group (EGH AU): Aspen’s Offer Is A Non-Starter
- On the 23 January, Aspen (APZ AU) improved its scrip terms to 0.26 Aspen shares per Eureka (EGH AU) share, up from 0.225 Aspen shares on the 2 March 2023.
- Two weeks later, Eureka said they still had not received a formal Offer. Aspen has now released its Bidder’s Statement. Its Offer has a 50.1% acceptance condition.
- Complicating the Offer was the recent disclosures from FDC Group that it held a 12.89% stake, preventing Aspen compulsory acquiring shares.
Iberdrola/Avangrid: Logical Move
- Iberdrola SA (IBE SM) launches a $34.25/share cash offer to acquire the minorities (18.4%) in its US subsidiary Avangrid (AGR US). Premium is 6.8%, and the cost c. $2.5 billion.
- The market was awaiting this move since the cancellation of the PNM deal, which explains the recent rise in the share price of Avangrid.
- Gross spread is 4.5%. It seems investors are buying in the hope of an offer sweetening, knowing that Iberdrola has some cash available to spend from the profitable Mexico exit.
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