In today’s briefing:
- Penguin Int’l (PBS SP): Chairman & Dymon’s Bumped & Final Offer
- JD Industrials Pre-IPO: Pure Platform for Third Parties and Strong Support from Related Parties
- Triton/Caverion: Drawing to a Close
- TAV Airports (TAVHL TI): Mkt Leader, Best Growth Profile, Currency Hedged, Strong Mgmt
- Liquid Universe of European Ordinary and Preferred Shares: May‘23 Report
- BES: A Micro-Cap That Punches Above its Weight
Penguin Int’l (PBS SP): Chairman & Dymon’s Bumped & Final Offer
- On the 4 May, Singapore-based builder and operator of aluminum high-speed boats Penguin International (PBS SP) announced a Voluntary Unconditional Offer from its Chairman and Dymon Group at S$.82/share.
- The Offer Price was a lifetime high and likely sufficient to push for compulsory acquisition. However, the Offerors have now sweetened terms to S$0.83/share.
- As to be expected, this is trading to terms. Volume remains light.
JD Industrials Pre-IPO: Pure Platform for Third Parties and Strong Support from Related Parties
- JD Industrials is a pure trading platform for third party wholesalers.
- The company avoids the competition with its clients and the risk of overdue account receivable.
- JD Industrials has brand support from JD.com and logistics support form JD Logistics.
Triton/Caverion: Drawing to a Close
- Crayfish/Triton’s purchase price is the highest and now officially preferred by Caverion Corp (CAV1V FH)‘s Board of directors. The offer period for both offers expires on 17 May.
- Caverion’s board advisors believe the offer will be finalized between October and February. Shares trade above Bain’s alternative consideration (lower chance to succeed) and Triton has already secured 29.9%.
- Spread to Triton’s offer is 4%/7.9% (gross, annualised assuming settlement by 30 November), however the free float has been massively reduced, hence the liquidity too.
TAV Airports (TAVHL TI): Mkt Leader, Best Growth Profile, Currency Hedged, Strong Mgmt
- TAV Airports is the #1 airport terminal operator in Turkey with a 31% passenger market share and 28% market share in commercial flights.
- TAV has one of the best growth profile among peer group with expected 3 yr revenue CAGR of 10%-14% and EBITDA CAGR of 12%-18%.
- Potential upside of over 50% in one year and over 200% in 4-5 years.
Liquid Universe of European Ordinary and Preferred Shares: May‘23 Report
- Since mid-April, spreads have generally widened across our liquid universe (12 have widened, 7 tightened). German spreads are tightening.
- Recommended trades long ordinary / short preferred shares: Fuchs Petrolub, SSAB Svenska Stal, Roche.
- Recommended trades long preferred / short ordinary shares: Carlsberg, Media-for-Europe, Sixt, VW, Grifols, Atlas Copco.
BES: A Micro-Cap That Punches Above its Weight
- Braille Battery is a market leader in performance batteries for motorsports and racing vehicles.
- Braille Battery has posted a 56% sales CAGR over the last four years and is soon to be profitable
- BES will be launching a residential battery backup power system in the coming quarters with potential to gain major market share
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