In today’s briefing:
- Nidec (6594 JP): Structural Problems
- Guodian Tech’s Offer Risk/Reward – Pre-Condition Satisfied
- Last Week in Event SPACE: Didi Global, Ramsay Health, Keppel Corp, Melco, Toshiba, Twitter
- SK Shieldus IPO – Refiling Disclosures Should Make Multiples Move, LOWER.
- ClearBridge Investments Global Growth Strategy Q1 2022 Commentary
Nidec (6594 JP): Structural Problems
- Founder and Chairman Nagamori has reappointed himself CEO, obscuring the reasons why Nidec’s share price has declined.
- Quarterly earnings should recover, but strategic investments look three years into the future while materials costs rise and the economic situation deteriorates.
- Rising interest rates and compression of valuation multiples are likely to dampen the share price. Look to the long term without expecting a return to the glory days.
Guodian Tech’s Offer Risk/Reward – Pre-Condition Satisfied
- Guodian Technology & Environment Group (1296 HK)’s privatisation offer from China Energy is HK$1.08 per H share. The pre-condition was fulfilled on 22 April.
- The key conditions for the delisting will be approval by at least 75% of independent H-shareholders (<10% of all independent H-shareholders rejection). There is no minimum acceptance condition.
- At last close and for a mid-June effective date (composite document despatched by 29 April), the gross and annualised spread to the offer is 2.9% and 19.9%, respectively.
Last Week in Event SPACE: Didi Global, Ramsay Health, Keppel Corp, Melco, Toshiba, Twitter
- DiDi Global (DIDI US) had serious data problems. It still listed itself, against the wishes of the regulators. Then it got in serious hot water. And it’s been getting hotter.
- Ramsay Health Care (RHC AU) announced an unsolicited, non-binding Offer from KKR (and HISTA), at A$88.00/share, a 36.7% premium to last close, however, earnings have been left bedridden by the pandemic.
- Post-Deal, Keppel Corp (KEP SP) will look more like Sembcorp Industries (SCI SP). More engineering, less power generation infra assets, more other infra assets and more data centres.
SK Shieldus IPO – Refiling Disclosures Should Make Multiples Move, LOWER.
- SK Shieldus (SKS) aims to raise around US$800m via issuing a mix of primary and secondary shares in its Korea IPO.
- SKS is the security subsidiary of SK Square. It provides security services across four main categories: information security/Cybersecurity, convergence security, physical security, and Safety & Care.
- In this note, we will look at the refiling updates.
ClearBridge Investments Global Growth Strategy Q1 2022 Commentary
- A sharp spike in bond yields pressured growth stocks and weighed on Strategy performance against its core benchmark, where leadership was decidedly one-sided in favor of value.
- Nevertheless, we remain positive on areas like the IT sector and have largely maintained holdings in our highest-conviction ideas.
Before it’s here, it’s on Smartkarma
