In today’s briefing:
- About A Gajillion Yen of Index Flows At the Close
- MACA’s A$1.075 Offer from Theiss Declared Unconditional
- Summers Value Partners Q2 2022 Investor Letter
- MACA: Thiess Declares Offer Unconditional
- Waste Management: Recent Acquisitions & Other Drivers
About A Gajillion Yen of Index Flows At the Close
- Today is a day which happens twice a year in Japan.
- It is Day Before Divs Go Ex- Day. Which theoretically means a fair bit of buying.
- Nikkei 225 is pretty neutral. But there is a Nikkei 225 buy of Nidec Corp (6594 JP). TOPIX and other float market cap indices are a buy on the close.
MACA’s A$1.075 Offer from Theiss Declared Unconditional
- Theiss’ offer of A$1.075 per share for MACA Ltd (MLD AU) has been declared unconditional despite acquiring 44.30% of outstanding shares, below the 50% threshold.
- The offer has met with resistance from retail shareholders as it remains below NRW’s rejected offer, and there is a lack of clarity on franking credits.
- Thiess can restart on-market purchases from 27 September. The offer closes on 7 October. The shares are trading in line with the offer.
Summers Value Partners Q2 2022 Investor Letter
- Summers Value Partners is a boutique value manager that uses a focused, long-term approach to investing in areas of the market where most managers are unwilling or unable to participate.
- The Summers Value Fund LP (“the Fund”) returned -25.9% net in the first half of 2022.
- The majority of our decline took place in the first quarter as we were too slow to react to the Fed’s decision to increase interest rates and shrink its balance sheet to cool the over-heated economy.
- The next stage of the bear market will most likely involve lower corporate earnings due to a more challenging businessclimate and reducedaccess to capital.
MACA: Thiess Declares Offer Unconditional
- Diversified contractor MACA Ltd (MLD AU) announced a friendly off-market cash offer from fellow contractor Thiess on the 26 July, at A$1.025/share, a 28.1% premium to the undisturbed price.
- After MACA rejected NRW Holdings (NWH AU)‘s non-binding proposal (with an implied consideration of $1.085/share), Thiess lifted its all-cash Offer to A$1.075/share. NRW subsequently walked.
- The Offer was conditional on Thiess having a relevant interest in more than 90% of MACA. That condition has been waived and the Offer is now Unconditional.
Waste Management: Recent Acquisitions & Other Drivers
- Waste Management had remarkable organic revenue growth, driven by a collection and disposal yield of 6.2%.
- The company continues to combat widespread inflationary cost pressures and its pricing has accelerated sequentially.
- Overall, we give Waste Management a ‘Hold’ rating with a revised target price.
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