In today’s briefing:
- Acotec Scientific Holdings: Boston Scientific’s Partial Offer
- Acotec Scientific (6669 HK)’s Partial Offer of HK$20 from Boston Scientific
- Bionote: IPO Price Reduced Significantly & Bookbuilding Results
- Akeso Biopharma (9926.HK) – Behind the Deal with Summit: A Snake Swallows an Elephant?
- Humana Inc.: Initiation of Coverage – Expansion Of CenterWell & Other Drivers
- Is Effective Reform Only Possible After Future Problems with High-Risk Companies?
Acotec Scientific Holdings: Boston Scientific’s Partial Offer
- Acotec Scientific Holdings (6669 HK), a Chinese medical technology company, has announced a Partial Offer from Boston Scientific (BSX US).
- The Offer Price for up to 65% of shares out is HK20/share, a 31.6% premium to last close, but below last year’s IPO price of HK$23.80/share.
- Irrevocables who intend to tender a total of up to 60.14% of shares out. This includes the CEO and the key pre-IPO investor.
Acotec Scientific (6669 HK)’s Partial Offer of HK$20 from Boston Scientific
- Acotec Scientific Holdings (6669 HK) disclosed a partial offer from Boston Scientific (BSX US) to acquire a maximum of 203.7 million shares at HK$20 per share.
- The partial offer is conditional on the offeror hitting 50.01% voting rights and approval by the requisite majority of shareholders. Irrevocables represent a minimum of 55.14% of outstanding shares.
- Despite the recent share price pop on the back of FDA approval for Vericor, the partial offer represents an all-time share price high. Therefore, the offer will be declared unconditional.
Bionote: IPO Price Reduced Significantly & Bookbuilding Results
- Bionote slashed its IPO price to 9,000 won, which is 50% lower than the low end of the previous IPO valuation range.
- Our base case valuation has been revised down to 12,741 won per share in target price, which is 41% higher than the IPO price of 9,000 won.
- The company is expected to have more than 615 billion in net cash post the IPO, which is expected to represent nearly 65% of its market cap!
Akeso Biopharma (9926.HK) – Behind the Deal with Summit: A Snake Swallows an Elephant?
- Akeso Biopharma Inc (9926 HK) and Summit Therapeutics entered into a collaborative and licensing agreement for AK112, which has set a new record for China’s innovative drug license-out cooperation.
- While the market remained positive about the transaction, there are also doubts. We deep dive the potential logic of the deal.
- We recommended investors not to neglect “the nature of the deal” and “the real motivation” behind. It’s also important to see whether the subsequent operations can make some achievements overseas.
Humana Inc.: Initiation of Coverage – Expansion Of CenterWell & Other Drivers
- This is our first report on Humana, a leading player in the medical insurance space in the U.S.
- The company’s third quarter results were reasonably strong as it met Wall Street’s revenue expectations while managing an earnings beat.
- In addition to improving plan offers for their larger membership, the management strengthened their consumer segment strategy.
Is Effective Reform Only Possible After Future Problems with High-Risk Companies?
- Large audit firms focus on more profitable business and improving the profitability of their audit services. Consequently, high-risk firms that have been withdrawn from large firms flow to small-and-medium-sized firms.
- “Enhancement of governance, including third-party evaluation function” is crucial to ensure that the audit firm has system to oversee and objectively determine the appropriateness of audit process and audit opinion.
- Smaller audit firms will comply with the guidelines just for show, but only when future problems with high-risk firms arise will effective reforms be made in accordance with the guidelines.
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