Daily Brief Financials: Platinum Asset Management, K Bank, Commerzbank AG, Triple Point Social Housing REIT and more

• Platinum Asset Management (PTM AU) has confirmed, and is “considering the merits” of an  unsolicited confidential, non-binding, indicative proposal from Regal Partners (RPL AU).
• Regal has offered, by way of a Scheme, 0.274 Regal shares for every Platinum share. A $0.24/share special dividend is permitted, and added. Regal holds an estimated 5.1% stake.
• With funds under management down 27% yoy, a merger with Regal is just the tonic for Platinum’s long-suffering investors. Founder Kerr Neilson, holding 21.7%, will have the final say.

• Our base case valuation of K Bank is target price of 9,151 won per share, which is 4% lower than the low end of the IPO price range. 
• Given the lack of upside in our target price relative to the IPO price range, we would avoid in subscribing to the IPO.
• Our base case valuation is based on 1.6x P/B multiple using the company’s equity post IPO (2.35 trillion won). 

• Platinum Asset Management (PTM AU) confirmed it received a non-binding indicative proposal from Regal Partners (RPL AU) at 0.274 RPL shares per PTM share + special dividend of A$0.24.
• The implied offer price of A$1.14 per share based on Regal’s undisturbed price of A$3.30 per share is a 15.6% premium to the undisturbed price of A$0.99 (16 September).
• Despite the modest takeover premium, the offer is attractive compared to historical and peer multiples. Expect the Board to engage to facilitate an improved binding proposal.

• AIB Group (AIBG IE) is expected to experience an increase in free float from 75% to 80% in November 2024 due to the Irish Government reducing its stake this month.
• Commerzbank AG (CBK GR) is forecasted to have a ~2% points free float decrease in Global and European Indices as UniCredit bought more than what the German Government sold.
• The UK Government continues slashing its stake in NatWest Group (NWG LN) with potential further free float increases coming in November and December 2024.

• K Bank (279570 KS) plans to raise up to US$740m in its upcoming South Korean IPO.
• K Bank is one of three Internet-only banks in Korea. It provides a full range of commercial banking products and services.
• In this note, we talk about the positive aspects of the deal.

Triple Point Social Housing REIT (SOHO) returned to full dividend cover in H124, with EPRA earnings benefiting from inflation-linked, mostly uncapped rental growth and improving rent collection. Property valuations and NAV per share were lower, but progress with the two problem tenants and falling interest rates suggest this could reverse. Meanwhile, the shares yield more than 8% with the board targeting asset sales and share repurchases to address the discount to NAV.