In today’s briefing:
- China Online Marketplaces: Recap of 2Q Results
- Symbio (SYM AU): Superloop’s Best and Final Offer
China Online Marketplaces: Recap of 2Q Results
- The sector sees dramatic improvement in profitability and cashflow thanks to cutback on marketing expenses and headcount reduction.
- Topline growth is recovering but still clouded by sluggish macro conditions. It is understandable that investors treat these China proxies – one way or another – with caution.
- The sector’s valuation will remain pressured before the property market stabilizes and key macro indicators show concrete signs of improvement, in our view.
Symbio (SYM AU): Superloop’s Best and Final Offer
- Symbio Holdings (SYM AU) disclosed a revised indicative “best and final” proposal from Superloop Ltd (SLC AU). The terms (A$1.425 cash and 2.14 SLC shares per SYM share) remain unchanged.
- The two key changes are there is no due diligence condition and a mix-and-match option subject to scale back to achieve a maximum of 60% cash or 60% scrip.
- The offer is conditional on entering a scheme implementation agreement by 29 September. The offer is palatable and the Board is likely to succumb and sign a binding agreement.
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