In today’s briefing:
- StubWorld: REA Group Dives As CoStar Muscles Into Turf
- Strategic Reshuffle, Shareholder Adjustments, and Investment Outlook
- Recent Block Deal Sale on HD Hyundai Marine Solution and Headwinds on Korean Shipbuilding Sector
StubWorld: REA Group Dives As CoStar Muscles Into Turf
- A double dose of StubWorld this week: REA Group Ltd (REA AU)‘s rolls over as CoStar Group (CSGP US) bets big on key rival Domain Holdings Australia (DHG AU).
- Preceding my comments on REA and News Corp (NWSA US) are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Strategic Reshuffle, Shareholder Adjustments, and Investment Outlook
- Naturgy plans a €2.5 billion share buyback at €26.5 per share, thus increasing free float and liquidity, potentially aiding index inclusion and attracting passive ETF investors.
- The 2025-2027 strategic plan targets €6.4 billion investments, focusing on networks and renewables while maintaining EBITDA at €5.3 billion and net profit at €1.9 billion.
- A rising dividend from €1.6 to €1.9/share by 2027, with a 100% payout ratio, provides a 7.4% 27e yield, supported by a 2.3x net debt/EBITDA, ensuring sustainability.
Recent Block Deal Sale on HD Hyundai Marine Solution and Headwinds on Korean Shipbuilding Sector
- On 19 February, KKR sold 2 million shares (4.49%) stake in HD Hyundai Marine Solution at 147,500 won (9.3% discount to the previous day’s closing price), representing 295 billion won.
- Therefore, we would argue that these major shipbuilding shares in Korea (such as HD Hyundai Heavy Industries and Hanwha Ocean) could face more difficult headwinds in the coming months.
- KKR’s timing of its block deal sale of HD Hyundai Marine Solution also reflects its attempt to partially sell its shares while the stock price is still at lofty levels.
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