In today’s briefing:
- Penguin International (PBS SP): Dymon Asia’s Unconditional and Final Offer of S$0.83
- Sea Ltd: Facing an Uphill Battle for Sustainable Profits
Penguin International (PBS SP): Dymon Asia’s Unconditional and Final Offer of S$0.83
- Penguin International (PBS SP) disclosed a revised and final voluntary unconditional offer from Dymon Asia, Executive Chairman and Managing Director at S$0.83, a 16.9% premium to the undisturbed price.
- Unlike the previous offer, the final offer will not be reduced for the FY22 dividend. The final offer price is attractive and represents a 10-year share price high.
- An attractive offer makes it also likely that the offeror hits the 90% compulsory acquisition threshold, which requires a minority acceptance rate of around 44%.
Sea Ltd: Facing an Uphill Battle for Sustainable Profits
- Sea (SE US) may achieve around $3.0 billion in 1Q23 revenue, in line with consensus, but is likely to miss the consensus OP estimate of $309 million by approximately 10%.
- Shopee’s profitability is at risk without sustained revenue growth. If the cost-cutting strategy persists, losses are expected by 3Q23 or possibly sooner with a strategy shift.
- Amid Free Fire’s decline and Shopee’s potential losses, the fintech business stands as the sole bright spot.
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