In today’s briefing:
- Ramsay Health Care (RHC AU): Indicative Proposal from KKR & Index Implications
- Korean Botox Players in Another Round of Patent Fights: Medytox (086900 KS) Sues Hugel (145020 KS)
- Shijiazhuang Yiling Pharmaceutical (002603.CH) – Doubts About COVID-19 Drug and the Concerns Behind
- Hygeia Healthcare Group (6078.HK) 2021 Results – Solid Business Logic Comes with Policy Risk
- Fiduciary Management All Cap Equity Q1 2022 Investment Letter
- Oakmark International Fund: Q1 2022 Commentary
- KKR Bids $88/Share For Ramsay Health
- Oakmark Global Select Fund: Q1 2022 Commentary
Ramsay Health Care (RHC AU): Indicative Proposal from KKR & Index Implications
- A KKR led consortium has made a conditional, non-binding, indicative proposal to acquire 100% of the shares in Ramsay Health Care (RHC AU) at A$88/share in cash.
- The offer values Ramsay Health Care (RHC AU) at A$20.14bn and is a premium of 36.7% to the last close. The premium is over 30% even using longer term VWAPs.
- There will be changes to the S&P/ASX family of indices to maintain the number of index members. We will know more once an indicative timeline is published.
Korean Botox Players in Another Round of Patent Fights: Medytox (086900 KS) Sues Hugel (145020 KS)
- Hugel Inc (145020 KS) dominates South Korean botulinum toxin market, with ~50% share. The company already has presence in China and aims to launch its product in Europe this year.
- Hugel’s ambitious target to enter into the world’s largest botulinum toxin market, U.S. is facing a big obstacle as Medy Tox Inc (086900 KS) filed a complaint against the company.
- Medytox’s U.S. business is uncertain after the ending of its exclusive licensing agreement with Abbvie Inc (ABBV US).
Shijiazhuang Yiling Pharmaceutical (002603.CH) – Doubts About COVID-19 Drug and the Concerns Behind
- There are doubts about the efficacy of Lianhua Qingwen to treat mild cases of COVID-19 in China, leading to the plunge of Yiling’s share price.
- Fully evaluating the efficacy of Lianhua Qingwen requires larger double-blind randomized clinical trials. Data from other than double-blind controlled clinical trials are hard to be conclusive and can be controversial.
- Even if Yiling could escape unscathed from the controversy, Yiling’s achievements since 2020 in capital market may not have sustainability.Together with the potential risks, investors are advised to remain cautious.
Hygeia Healthcare Group (6078.HK) 2021 Results – Solid Business Logic Comes with Policy Risk
- Driven by the development mode of “organic growth + strategic acquisitions + cooperation with hospital partners”, Hygeia Healthcare Group (6078 HK) could rapidly expand nationwide, with solid business logic.
- Hygeia’s delicacy management and the strength in operation help the Company to break the limits of the expansion of private hospitals, helping shorten the time it takes to break even.
- However, the high uncertainties on policy and State’s attitude towards private hospitals cast shadow on Hygeia’s long-term prospects, but investors could still trade this stock in short term.
Fiduciary Management All Cap Equity Q1 2022 Investment Letter
- The Fed Funds Rate went higher than the inflation rate to tame it, the Fed Funds rate went higher in the past fifty years.
- The Fed has made some adjustments, are optimistic about the COVID-affected names, and are confident in the lineup we have today.
Oakmark International Fund: Q1 2022 Commentary
- Oakmark International Fund returned -8.7% for the quarter ended March 31, 2022.
- The fund’s research process is based on a disciplined quantitative and qualitative screening process, says Oakmark.
- The firm says it believes businesses must offer significant profit potential and be run by managers who think and act as owners.
KKR Bids $88/Share For Ramsay Health
- Hospital operator Ramsay Health Care (RHC AU) has announced an unsolicited, non-binding Offer from KKR, by way of a Scheme, at A$88.00/share, in cash, a 36.7% premium to last close.
- Presumably, Paul Ramsay’s Ramsay Foundation, Ramsay’s largest shareholder, is supportive, otherwise there is no deal.
- Due diligence has been granted. If successful, this would be one of the largest LBOs by a private equity outfit in Australia.
Oakmark Global Select Fund: Q1 2022 Commentary
- The Oakmark Global Select Fund declined 7.1% for the quarter ended March 31, 2022.
- The Oakmark global Select Fund is based on a disciplined quantitative and qualitative screening process, says the firm.
- The fund is based in London and London, London, and has a $1.2bn annual fund.
Before it’s here, it’s on Smartkarma
