In today’s briefing:
- Atlas Arteria Placement – How to Lose Friends and Alienate Your Largest Shareholder
- Atlas Arteria (ALX AU): Acquisition, ANREO & ASX50 Inclusion
- Moya Holding’s S$0.092 Delisting Offer
- Moya Holdings: Anthoni Salim’s Exit Offer
- EQD | Volkswagen (VOW3 GY): Porsche IPO Could Unlock Value-We Look at the Best Derivative Trades
- CALB Pre-IPO – Peer Comparison – Top Growth, Bottom Margins, Fastest Expansion Plans
- CALB IPO: Solid PHIP Results Offset by Further Market Downturn
- Hyundai Heavy IPO Lock-Up – Last of the Lockups with Employees Coming Free
- Conch Venture (586 HK): An Overlooked Value Play
Atlas Arteria Placement – How to Lose Friends and Alienate Your Largest Shareholder
- Atlas Arteria (ALX) aims to raise around US$2bn (A$3bn) via a non-renounceable entitlement offer to fund the purchase of its majority interest in Chicago Skyway.
- Over the past few months, ALX has garnered interest from IFM which has increased its stake to 19.99%. IFM had publicly opposed this acquisition.
- In this note, we will talk about the deal dynamic and run the deal through our ECM framework.
Atlas Arteria (ALX AU): Acquisition, ANREO & ASX50 Inclusion
- Atlas Arteria (ALX AU) is acquiring 66.67% in Skyway Concession Company LLC, the concessionaire of the Chicago Skyway for an equity value of US$2.013bn (A$3.098bn).
- The acquisition will be funded by a fully underwritten 1:1.95 ANREO to raise A$3.098bn. The offer price of A$6.3/share is a 13.7% discount to TERP and 19.3% discount to last.
- The increase in market cap could result in Atlas Arteria (ALX AU) being added to the S&P/ASX 50 Index at the December rebalance.
Moya Holding’s S$0.092 Delisting Offer
- Moya Holdings Asia (MHAL SP) received a delisting proposal from Tamaris Infrastructure (a 72.84% shareholder) at S$0.092 per share, a 41.5% premium to the undisturbed price (8 September).
- The key condition is shareholder approval. Gateway Partners, which holds a blocking stake, will likely use the offer as an opportunity to exit an underperforming investment.
- The offer price is attractive. At the last close price, the gross and annualised spread for a year-end effective date is 3.4% and 11.5%, respectively.
Moya Holdings: Anthoni Salim’s Exit Offer
- Indonesian water treatment play Moya Holdings Asia (MHAL SP) has announced an Exit Offer from Tamaris Infrastructure, an Anthoni Salim-controlled entity.
- The Offer price is S$0.092/share, a 41.5% premium to last close. The Offer price will not be increased.
- The Offer requires approval from 75% of disinterested shareholders. Tamaris and its concert parties hold 72.84%.
EQD | Volkswagen (VOW3 GY): Porsche IPO Could Unlock Value-We Look at the Best Derivative Trades
- Volkswagen are planning to IPO Porsche in order to address company valuation and to raise funds to further expand into the EV market.
- The stock looks attractive on a valuation basis and the company has the potential to transform and future proof the business and gain a more favourable P/E ratio.
- We look at the Derivatives Market for the best risk reward strategies.
CALB Pre-IPO – Peer Comparison – Top Growth, Bottom Margins, Fastest Expansion Plans
- CALB aims to raise around US$1.5bn in its Hong Kong IPO.
- CALB undertakes design, R&D, production and sales of EV batteries and Energy Storage Systems (ESS) products.
- In this note, we undertake a peer comparison and talk about the company’s expansion plans.
CALB IPO: Solid PHIP Results Offset by Further Market Downturn
- CALB’s revenue surged by 266% YoY to reach 3.9 billion RMB in 1Q 2022. Its operating profit also increased by 43.5% YoY in 1Q 2022, respectively.
- CALB also had the highest sales growth rate of 266.5% YoY in 1Q 2022 versus 154% growth YoY for CATL and 63% growth YoY for BYD in 1Q 2022.
- CALB is one of the most interesting large cap IPOs globally in 2022. Despite horrible market conditions, the company is trying to complete its IPO in the next several weeks.
Hyundai Heavy IPO Lock-Up – Last of the Lockups with Employees Coming Free
- Hyundai Heavy Industries (HHI) was listed on Korea Exchange on 17th September, 2021. Its one year lock-up will expire on 17th Sep, 2022.
- Hyundai Heavy Industries (HHI) is a South Korean shipbuilder. The company is majority owned by Korea Shipbuilding & Offshore Engineering (009540 KS) after the latter’s spin-off in 2019.
- In this note, we will talk about the upcoming lock-up expiry, along with recent updates.
Conch Venture (586 HK): An Overlooked Value Play
- China Conch Venture Holdings (586 HK) is now at negative stub value, the low-end since 2020. This is despite a 16.4% growth in 1H22 core earnings to Rmb542m.
- The company’s waste-to-energy (WTE) capacity will increase by 25% in FY23 and its internal target calls for an earnings CAGR of 33% between FY21 and FY25 for WTE segment.
- We should not underestimate the potential from new business initiatives including cathode and anode materials and lithium battery recycling. They have good medium-to-long term exposure to China’s new energy industry.
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