In today’s briefing:
- Golden Energy (GER SP): Widjaja Family’s Low-Balled Offer
- Archean Chemical Industries IPO – Strong Growth Makes It Worth a Shot
- Siemens Energy/Siemens Gamesa: Time to Tender
- Caterpillar Inc: EV Prototype Launches & Other Drivers
- Honeywell International: Improved Air Quality Monitoring Solutions & Other Drivers
Golden Energy (GER SP): Widjaja Family’s Low-Balled Offer
- Golden Energy & Resources (GER SP) has proposed in-specie-ing its holding in Golden Energy Mines (GEMS IJ), subsequent to which the Widjaja family will undertake an Exit Offer.
- Ex-GEMS, the family is Offering S$0.16/share. That’s insulting. And the Offer was announced after GEAR’s share price had fallen 26%. The Exit Offer has been declared final.
- GEAR’s jewel is the stake in GEMS, and shareholders are afforded future exposure. However, the stub ops are worth considerably more than S$0.16/share.
Archean Chemical Industries IPO – Strong Growth Makes It Worth a Shot
- Archean Chemical Industries (0810406D IN) is looking to raise about US$178m in its India IPO.
- Archean Chemical Industries (ACI) is a specialty marine chemical manufacturer in India focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.
- We have looked at the background of the deal in our earlier notes. In this note, we will talk about the peer comparison and valuations.
Siemens Energy/Siemens Gamesa: Time to Tender
- The CNMV has authorised the takeover bid for Siemens Gamesa launched by Siemens Energy. Shareholders can tender up to 13 December. The market believes the offer will succeed.
- Gross spread 0.194%, 1.6% estimated annual return (assuming settlement 23 December). Since announcement, the share price has remained below the offer price, with high daily turnover and a tight spread.
- Accept offer. I don’t expect any relevant changes: Siemens Energy already has control, operating problems persist and the financial position continues to deteriorate. The offer price represents 46.9x P/2024e E.
Caterpillar Inc: EV Prototype Launches & Other Drivers
- Caterpillar delivered another solid quarter with an all around beat and generated strong ME&T free cash flow and a higher operating profit margin.
- To expand its offerings in the construction industry, Caterpillar is launching four prototypes of electric vehicles that are powered by lithium-ion batteries.
- We provide the stock of Caterpillar with a ‘Hold’ rating and a revision in the target price.
Honeywell International: Improved Air Quality Monitoring Solutions & Other Drivers
- Honeywell delivered a mixed set of results while going through a tough operating environment.
- Honeywell delivered organic sales growth and strong double-digit growth in its building products businesses, commercial aerospace, and advanced materials.
- In the quarter, earnings and cash flows was a bright spot as Honeywall managed an earnings beat.
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