In today’s briefing:
- Nanya Tech: SK Hynix & Samsung Results Supportive for Memory Chip Industry 2023E Outlook
- Nitro’s Carrot-And-Stick A$1.80 Takeover Offer from Potentia
- KOSDAQ150 Ad Hoc Index Rebalance: LX Semicon OUT, Nextin IN
- Pushpay Enters a SID with Sixth Street/BGH at NZ$1.34
- Pushpay: BGH/Sixth Street Keep The Faith With $1.34/Share Tilt
Nanya Tech: SK Hynix & Samsung Results Supportive for Memory Chip Industry 2023E Outlook
- SK Hynix and Samsung both released their latest earnings last week. The companies are the leading players for Nanya Tech’s memory chip industry.
- SK Hynix’s latest gross margin performance confirms Nanya Tech performing in-line with the industry leaders.
- Guidance from both SK Hynix and Samsung indicates a likely improvement in supply/demand dynamics in 2023E for the memory chip space.
Nitro’s Carrot-And-Stick A$1.80 Takeover Offer from Potentia
- Nitro Software Ltd (NTO AU) entered a trading halt in response to Potentia’s off-market takeover offer of A$1.80 per share, a 13.9% premium to its previous rejected offer of A$1.58.
- Potentia will block rival schemes and not accept competing takeover offers. This move will make it hard for the Board to convince a rival bidder to table an offer.
- Potentia wants a friendly offer and placed majority Board support as a condition. The offer is unattractive but Potentia has hinted at improved terms if provided due diligence access.
KOSDAQ150 Ad Hoc Index Rebalance: LX Semicon OUT, Nextin IN
- Following its planned section transfer, LX Semicon (108320 KS) will be deleted from the KOSDAQ 150 Index at the close on 2 November and replaced by Nextin (348210 KS).
- Passive trackers will need to buy over 4.5 days of ADV on Nextin (348210 KS) and sell over 1.5 days of ADV on LX Semicon (108320 KS).
- Belonging to the Information Technology sector, there is zero chance of LX Semicon (108320 KS) being added to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX).
Pushpay Enters a SID with Sixth Street/BGH at NZ$1.34
- Pushpay Holdings (PPH NZ) entered a scheme implementation deed (SID) with Sixth Street/BGH at NZ$1.34 per share, a 30.1% premium to the undisturbed price (12.6% premium to the last close).
- The key conditions are shareholder and regulatory (OIO & US antitrust) approvals. The scheme meeting is in 1Q23.
- The offer is light. A concentrated shareholder register and signs of retail opposition are risks. A 75% deal probability, implies buying up to NZ$1.27 per share.
Pushpay: BGH/Sixth Street Keep The Faith With $1.34/Share Tilt
- Church donor management tech play Pushpay (PPH NZ) has been fielding expressions of interest since April. Earlier this month, Pushpay announced it had received another proposal, reportedly from BGH/Sixth Street.
- On the 28 October, Puspay announced it had entered into a Scheme Implementation Agreement at NZ$1.34/share with BGH/Sixth Street, which collectively hold 20.34%. This is a 30.1% premium to undisturbed.
- The offer is subject to shareholder and regulatory approval, with a possible completion date in early 2Q23.
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