In today’s briefing:
- Virtus Health (VRT AU): CapVest’s Bid Edges BGH Capital
- ClouDr (智云健康) Pre-IPO – Strong Growth but Has Issues that Need to Be Clarified
- Samsung Biologics (207940 KS): Well-Positioned to Leap Forward Without Biogen Deal
- Virtus Receives a Competing Offer from CapVest
- Is It Time For Moderna To Boost Share Buyback And Start Paying Dividends?
Virtus Health (VRT AU): CapVest’s Bid Edges BGH Capital
- UK-Based CapVest Partners is offering A$7.60/share, in cash, for Virtus Health (VRT AU), compared to BGH Capital’s bid last month of A$7.10/share. Virtus has granted exclusive due diligence.
- CapVest’s Offer is non-binding. No doubt due to BGH holding 20% of shares out, CapVest will concurrently run an alternate off-market bid with a 50.1% acceptance condition at A$7.50/share.
- At a ~5% spread to the indicative Scheme terms, I would look to get involved.
ClouDr (智云健康) Pre-IPO – Strong Growth but Has Issues that Need to Be Clarified
- ClouDr Group (16897333D CH) (CDG) is looking to raise up to US$500m in its upcoming Hong Kong IPO.
- The firm is a digital chronic condition management solution provider and is market leader in China in terms of the number of SaaS installations in hospitals and pharmacies in 2020.
- In this note, we share our thoughts on the company’s business, financials, and operating metrics.
Samsung Biologics (207940 KS): Well-Positioned to Leap Forward Without Biogen Deal
- Samsung Biologics Co., (207940 KS) has denied its acquisition talk with Biogen Inc (BIIB US). With its current controversies, Biogen does not seem to be an attractive bet.
- The company is poised for strong growth in 2022, driven by its massive capacity expansion plans and portfolio diversification toward high-growth areas like cell & gene therapies and mRNA business.
- With an increasing order backlog resulting from consistent contract win and expanding customer base, Samsung Biologics has strong revenue visibility.
Virtus Receives a Competing Offer from CapVest
- Virtus Health (VRT AU) announced an offer from CapVest comprising of A$7.60 per share via a scheme (a 7.0% premium to BGH’s A$7.10 offer) or A$7.50 via an off-market takeover.
- CapVest’s offer is contingent on exclusivity and cost recovery protections. The Board will recommend a binding offer of at least A$7.60 via a scheme or A$7.50 via an off-market takeover.
- Due to the healthy premium to historical multiples and share prices implied by the CapVest offer, it is likely that BGH will be hesitant to start a bidding war.
Is It Time For Moderna To Boost Share Buyback And Start Paying Dividends?
- Shares of Moderna Inc (MRNA US) underperformed and fell ~32% YTD. Investors continued to cut exposure to stocks of COVID vaccine makers, including BioNTech, Novavax, CureVac, among others.
- In August 2021, Moderna announced the first share buyback plan. The company’s Board of Directors has authorized share repurchase for up to $1 billion with an expiry date in 2023.
- We estimate Moderna may end 2021 with a total of ~$18.5 billion in cash, cash eq., investments and expect the company may boost share buyback in the future.
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