In today’s briefing:
- J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry
- SENSEX Index Rebalance Preview: Wipro Deletion to Bring Sector Balance into Play
- APM (APM AU): Madison Dearborn’s “Disappointing” NBIO
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J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry
- J&T Global Express (1519 HK)’s 180-day IPO lock-up period for 88% of outstanding shares expires on 24 April. The shares exiting the lock-up period are worth US$9.9 billion.
- The likely sellers will be the Series pre-A1, pre-A2, A and B investors as are they are materially in the money at the last close price.
- J&T has returned to organic growth with a shift to profits and declining cash burn. While the last close is 17% below the IPO price, the shares are fairly valued.
SENSEX Index Rebalance Preview: Wipro Deletion to Bring Sector Balance into Play
- Nearly 90% of the way through the review period of the June rebalance, we see one potential index change with Wipro Ltd (WPRO IN) in deletion zone.
- Oil & Natural Gas Corp (ONGC IN), Coal India Ltd (COAL IN) and Adani Enterprises (ADE IN) are potential replacements with sector balance likely to come into play.
- Passive trackers will need to trade over 13 days of delivery volume on the potential index changes.
APM (APM AU): Madison Dearborn’s “Disappointing” NBIO
- On the 28th Feb, PE-outfit CVC Asia Pacific bumped its NBIO to A$2.00/share, and was granted exclusive due diligence. On the 27th Mar, CVC said they were “unable to proceed“.
- Today, the 8th April, Madison Dearborn Partners, holding ~29%, has pitched an non-indicative, non-binding Offer at A$1.40/share, in cash, by way of a Scheme. An unlisted scrip option is available.
- A key condition is APM Human Services (APM AU)‘s executive-chair Megan Wynne, founding related parties, and key management, electing scrip. The Independent Board Committee reckons the Offer Price is disappointing.