In today’s briefing:
- Caymans To Decapitate The Headcount
- Samsung SDS Placement – Deal Is Very Well Flagged and the Stock Is Cheap, but It’s a Tough One
- Link Admin (LNK AU): Scheme On Track as Proposal Emerges For RSS Business
- US Expansion of Travel Bans the First Step in Broader Escalation?
- Link’s Privatisation by DND on Track to Complete in June/July
- Block Deal Sale of Samsung SDS by the Lee Family to Pay for Inheritance Taxes
- Vanguard (5347.TT): We Think Vanguard Can Easily Reach 1Q22 Guidance.
- Recent IPO Insights: Xometry
Caymans To Decapitate The Headcount
- The Cayman Islands is seeking to eliminate the “headcount test” for Schemes of Arrangement.
- Such an amendment will provide greater certainty for Hong Kong Schemes, wherein 59% of all listed companies are Cayman Islands incorporated.
- This development arrives a tad late for Razer Inc (1337 HK), which is trading wide to terms, exactly on account of the fact it could potentially fail the headcount test.
Samsung SDS Placement – Deal Is Very Well Flagged and the Stock Is Cheap, but It’s a Tough One
- Kookmin Bank Trust Department is looking to raise up to US$321m via selling 3.9% of Samsung SDS.
- The deal appears to be very well flagged as the ultimate sellers are the Samsung family.
- In this note, we will run the deal through our ECM framework and talk about the recent updates.
Link Admin (LNK AU): Scheme On Track as Proposal Emerges For RSS Business
- Link Administration Holdings (LNK AU) announced that all applications for regulatory approvals have been submitted. The Scheme explanatory booklet will be submitted to ASIC this week.
- Separately, discussions with LCFH have not resulted in an agreement for the sale of Link’s BCM business. Additionally, a proposal from FNZ Group for the RSS business was rejected.
- The ACCC and FCA approvals are the key risks to the deal completing.
US Expansion of Travel Bans the First Step in Broader Escalation?
- The US just expanded travel bans against Chinese officials said to be repressing ethnic and religious minorities.
- The timing, a few days after a Biden-Xi call on Russia that appeared to achieve little of substance is telling.
- Noises out of the UK have been similarly aggressive here and the question now is how Europe responds.
Link’s Privatisation by DND on Track to Complete in June/July
- Link Administration Holdings (LNK AU) notes that the Dye & Durham (DND) privatisation scheme remains on track for a June/July completion. Scheme document will be submitted to the ASIC shortly.
- Link also noted that it was unable to reach a binding agreement with LC Financial Holding for the sale of the BCM business.
- Key hurdles are ACCC clearance and the Woodford investigation. We would be buyers up to A$5.2 per share (implies 70% deal probability).
Block Deal Sale of Samsung SDS by the Lee Family to Pay for Inheritance Taxes
- The Samsung Group owner Lee family wants to partially sell their stake in Samsung Sds worth 390 billion won in a block deal.
- The block deal sale involves 3.02 million shares of Samsung SDS or 3.9% of outstanding shares.
- We would avoid this block deal as the company may face continued overhang sale issue in the next 1-2 years.
Vanguard (5347.TT): We Think Vanguard Can Easily Reach 1Q22 Guidance.
- It’s NTD$4.976~5.176bn to go in March to reach the 1Q22 guidance of NTD$13.2~13.6bn.
- Despite Consumer and Smartphone demands could be weak in 1Q because of seasonality, we still see the demands can be strong in PMIC, Auto, 5G and etc.
- For the continuous 8” demand, the clients have high willingness to sign up an LTA (long term agreement), which explains the strong demand situation now.
Recent IPO Insights: Xometry
- Two-Sided online marketplace connecting buyers and sellers. But is this more Amazon or Angi?
- Game changing acquisition in December of Thomas should turbocharge growth and margins for 2022-2023.
- At 4x sales, this is a very high growth asset that has been crushed since IPO, down 55%. Interesting entry point.
Before it’s here, it’s on Smartkarma
