In today’s briefing:
- Virtus Enters Into Firm Deal With CapVest
- CapVest Inches past BGH in a Heated Takeover Battle for Virtus
- Topchoice Medical (600763.CH) – The Logic Changes
- Paradigm Biopharmaceuticals (PAR AU): Concerns Persist Amid Deteriorating Financials
Virtus Enters Into Firm Deal With CapVest
- Virtus Health (VRT AU) gives the nod to CapVest as the latter bumps to $8.25/share – less dividends – by way of a Scheme
- CapVest will also make a concurrent off-market takeover Offer at $8.10, less dividends. This Offer can be triggered if the first Offer fails, and would only require 50.1% shareholder approval.
- Trading one spread below CapVest’s firm Scheme terms. Back in BGH’s court. Again.
CapVest Inches past BGH in a Heated Takeover Battle for Virtus
- CapVest’s binding offer is A$8.25 via a scheme or A$8.10 via an off-market takeover. The scheme offer is a 5.8% premium to its previous scheme offer of A$7.80 per share.
- Rival bidder BGH lobbed a revised non-binding offer of A$8.10 per share after market close on 10 March. The Board will consider any further improved competing offer.
- BGH (19.99% stake) previously stated that it will vote against a CapVest scheme and will not accept any takeover offer. Another round of bidding is a possibility.
Topchoice Medical (600763.CH) – The Logic Changes
- Policy risk is the biggest uncertainty for domestic medical service sector, without any overseas revenue to “hedge” such risk.
- The market places great hope on Topchoice to become a cross-regional enterprise with high growth sustainability. Without a reliable and replicable expansion model, the high valuation is not logical.
- Therefore, our view is that the Company’s investment logic has been shaken. Topchoice Medical (600763 CH) could be a short-term trade, but not long-term hold.
Paradigm Biopharmaceuticals (PAR AU): Concerns Persist Amid Deteriorating Financials
- Paradigm Biopharmaceuticals (PAR AU) shares plunged 32% since we published our bearish insight on the company on January 11. Shares are trading near their pandemic lows.
- Our negative view on the company due to the inherent safety proposition of lead drug and financial uncertainty remain intact. Insider buying led to the recent uptick in share prices.
- Amid uncertain global market condition and general market apathy toward biotechnology companies, we will not be an investor of Paradigm Biopharmaceuticals despite its recent sell-down.
Before it’s here, it’s on Smartkarma
