In today’s briefing:
- Tyro Payments (TYR AU): Potentia Returns with a A$1.60 Offer
- Merger Arb Mondays (12 Dec) – Nitro, Tyro, Bigtincan, Warrego, Genex, Elmo, Golden Energy
- Taiwan Tech Weekly: Broadcom Results Provide Some Signs of Strength, Hon Hai Facility Ends Lockdown
- Potentia Bumps But Tyro Shuts Down Talks
Tyro Payments (TYR AU): Potentia Returns with a A$1.60 Offer
- The AFR reports that Potentia has increased its offer for Tyro Payments (TYR AU) by 26.0% from A$1.27 to A$1.60 per share, a 62.4% premium to the undisturbed price.
- The revised offer remains light and likely to be rejected again by the Board. Grok’s get-out clause with Potentia now sets the floor price of a competing bid at A$1.85.
- Potentia’s revised bid is the catalyst for the other rumoured suitors (Westpac Banking (WBC AU) and Moneris) to get their act together. A competing offer of around A$2.00 is possible.
Merger Arb Mondays (12 Dec) – Nitro, Tyro, Bigtincan, Warrego, Genex, Elmo, Golden Energy
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads – 21Vianet Group (VNET US), Alliance Aviation Services (AQZ AU), Genex Power Ltd (GNX AU), Bigtincan Holdings Ltd (BTH AU), Golden Energy & Resources (GER SP), Origin Energy.
- Lowest spreads Nitro Software Ltd (NTO AU), Warrego Energy (WGO AU), Chip Eng Seng Corp (CHIP SP), Uzabase Inc (3966 JP), Elmo Software (ELO AU), OZ Minerals Ltd (OZL AU).
Taiwan Tech Weekly: Broadcom Results Provide Some Signs of Strength, Hon Hai Facility Ends Lockdown
- Broadcom FY22 results indicate strength in data centers, telco infrastructure, enterprise IT spending.
- Hon Hai’s Zhengzhou facility ends closed-loop operations, returning to a more normal state.
- U.S. asking Japan to have its firms comply with U.S. chip restrictions on China.
Potentia Bumps But Tyro Shuts Down Talks
- Potentia has increased its indicative proposal for Tyro Payments (TYR AU) to A$1.60/share from A$1.27/share. Grok, holding 12.5% of shares out, remains supportive.
- However, Tyro’s board believes the revised terms remain below what is considered fair, and has ceased all discussions.
- Separately, Westpac has decided not to submit an Offer. After conducting due diligence. Shares are down 19.5% as I type.
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