Daily Brief TMT/Internet: Fuji Soft Inc, Monolithic Power Systems, Inc, Intel Corp, CAR Group , NCC Group PLC, LG Display, Western Union Co, Badger Meter, Advanced Energy Industries and more

• On 8 August, KKR and Fuji Soft Inc (9749 JP) announced a Tender Offer for the company. It was, at the time, an intention to do so. KKR needed approvals.
• Fuji Soft had KKR terms, and timing, and approved them. KKR then changed the terms and timing. Now on the 19th, they changed the terms again. 
• This puts Fuji Soft in a kind of quandary. It’s important to think about why and what that leads to.

• The Fuji Soft Inc (9749 JP) Board has recommended KKR’s first tender offer (JPY8,800). The Board will announce its view on the second tender offer on launch. 
• The Board sounded out Bain’s progress on a binding proposal and 3D and Farallon’s on their irrevocable. The absence of a Bain binding proposal immensely helped the Board’s decision.
• Bain has likely left it too late. With a higher offer, Bain could force a recommendation change and hope KKR is shamed into cancelling 3D and Farallon’s irrevocable. 

• Monolithic Power Systems (MPWR US) is a direct addition followed by AppLovin (APP US) which is a conditional addition but close to be direct. Demand is ~$1.8bn and ~3.5 ADV.
• Dollar Tree Inc (DLTR US) is a direct deletion with the highest exclusion probability as it is  ranked above the exit rank of 125. 
• Super Micro Computer (SMCI US) , ARM Holdings (ARM US) and Moderna (MRNA US) are amongst the prioritized constituents preventing eligible candidates from entering the index. 

• Intel is spinning off their foundry division into its own entity within the company, with financial independence and guardrails in place.
• The company is not selling off assets as a whole but is making strategic deals, such as a partnership with Amazon.
• A letter from Intel’s CEO to the team hints at potential activist investor issues and the company’s legal obligations in response to potential acquisition offers.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• In this insight, we take a look at the potential index changes for ASX200, 100, 50, and 20 in the run-up to the December 2024 index rebal event.
• We currently do not see any index changes for ASX 20 and ASX 100.
• We see one change for ASX 100 and two changes for ASX 200 but the final result could depend on relative share price movements for the next two months.

• In this insight, we take a look at the potential ADDs and DELs for the F100 and F250 indices during the December 2024 index rebal event.
• We see up to seven M&A-related intra-review changes in the run up to the December 2024 review.
• Our latest estimates suggest there could be one change for the F250 index during the December 2024 rebalance. We do not currently see any changes for the F100.

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• The Western Union Company demonstrated progress in its second quarter of 2024 financial results, echoing its commitment to its Evolve 2025 strategy aimed at propelling the company towards competitive market positioning.
• Led by CEO, Devin McGranahan and CFO, Matt Cagwin, the earnings presentation outlined key financial metrics and strategic initiatives that mark both strengths and areas of concern.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Badger Meter Inc.’s second quarter earnings of 2024 reflected a robust performance.
• The company exceeded expectations, reporting quarterly revenues of $217 million, which marks a 23% year-over-year increase.
• This milestone was primarily driven by strong market demand and the efficient conversion of backlogs, which was slightly above anticipated levels.

• Advanced Energy’s second quarter of 2024 earnings report depicted a complex but progressive landscape for the company.
• The earnings call, led by key executives including President and CEO Steve Kelley and Executive Vice President and CFO Paul Oldham, detailed aspects of financial performance, strategic initiatives, market- specific dynamics, and forward-looking expectations with a clear resonance on the ongoing and future strategies meant to streamline operations and leverage market opportunities.
• Revenue for the quarter stood at $365 million, an 11% increase sequentially, exceeding the company’s guidance.