Daily Brief TMT/Internet: ASM Pacific Technology, Cerebras Systems , Apple , Arena Bilgisayar, Wise PLC, SBI Holdings and more

• Bloomberg reported that KKR has made a non-binding, preliminary approach to taking ASM Pacific Technology (522 HK) private. ASMPT has been the subject of takeover rumours in the past.
• The trading patterns of the substantial shareholders suggest a willingness to exit. However, past privatisation rumours suggest issues with the offeror matching key shareholders’ price expectations. 
• A binding proposal is unlikely as the timing would be viewed as opportunistic, with the recent market rally eroding a potential takeover premium and ASMPT’s premium multiple compared to peers.

• The second PE rumoured interest in ASMPT in 18 months, with KKR circling.
• Semiconductor M&A has surged in 2024 YTD with a 33% increase in deal activity compared to 2023.
• ASM’s leadership in TCB, potential growth within HBM, expansion at TSM and enabling the Nvidia Blackwell platform are all reasons for M&A interest.

• Reportedly – Bloomberg – KKR has made a non-binding proposal for ASM Pacific Technology (522 HK), the world’s leading back-end semiconductor production equipment supplier. 
• ASMPT’s largest shareholder, ASM International Nv (ASM NA), with 25%, has been the focus of activists for some time to sell its stake. 
• This bid has all the hallmarks of the approach (also cited by Bloomberg) by PAG last year. Which came to nought. From a regulatory standpoint, I can’t see this happening.

• I’m not going to write about the technical side at all, as I expect Dylan Patel’s team at SemiAnalysis to do a much better job than I can do alone.
• However, I want to note some of the funniest aspects because landmines are everywhere for this IPO. Of course, it’s driven by G42, but it’s much worse than you think. Here’s the prelim S-1.
• G42 is pretty much the only customer.

• Apple Set to Launch iPhone SE 4 and Updated iPad Air in Early 2025: Key Developments to Watch
• META’s Orion AR Glasses: Next Major Computing Platform After the Smartphone?
• Apple Supply Chain Monitor: Key IPhone Suppliers Didn’t Rally With Apple; Opportunity for Rebound?

• Arena Bilgisayar is Turkey’s second-largest IT distributor led by CEO Serkan Celik, who has successfully turned around the core distribution business and created value from non-core ventures
• Despite appearing undifferentiated, levered, and expensive on the surface, the company’s valuation is attractive at 1x tangible book value and 5-7x P/E ratio
• With double-digit annual growth, pre-tax returns on capital exceeding 35%, and Turkey’s return to orthodox monetary policy, an investment in Arena could potentially return between 3-5x over the next 5 years, founded in 1991 by former Karma International employees, Arena has a strong history and promising future.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Wise operates centers in different countries for faster and cost-effective cross-border transactions
• Strong track record of organic growth in a growing market with high Total Addressable Market
• Recent stock declines attributed to cyclical factors, but investors optimistic about Wise’s expanding product offerings and core FX payments supporting revenue growth

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Taiwan’s carbon fee policy is being challenged by local and EU regulations, impacting their offshore wind goals.
• Europe’s data center capacity shortage for the AI race is causing concerns in the region.
• Samsung’s Galaxy Tab S10 series now includes MediaTek chips, bringing new capabilities to the familiar design.