In today’s briefing:
- Uniden (6815) MBO – Cornwall Tests Market Norms By Launching a Low-Premium MBO
- Tencent Sells Down Its Stake in Koolearn – Divestments to Continue Further
- MyEG (MYEG): Why Not Own It?
Uniden (6815) MBO – Cornwall Tests Market Norms By Launching a Low-Premium MBO
- Uniden Holdings (6815 JP) is a ubiquitous manufacturer in its niche field of CBs, scanners, radar detectors, and marine radios. It used to be famous for cordless phones.
- That was then. Manufacturing revenues dropped 90% in 20yrs, there were some weird related party transactions, an accounting scandal, and now the company is fixing itself.
- And now value fund Cornwall Capital has launched an MBO at a [checks notes] 2.5% premium to last trade. This is going to be interesting.
Tencent Sells Down Its Stake in Koolearn – Divestments to Continue Further
- Tencent has been actively divesting its investments (mainly in China) given the ongoing regulatory challenges faced by tech platforms in China. Moreover, macroeconomic conditions also have led to these sell-downs.
- The company has explicitly mentioned that it would restructure its investment portfolio to manage risk, this includes divestments and distribution to shareholders.
- The latest sell-down was Tencent (700 HK) stake in online education platform Koolearn, whose share price more-than tripled this month following its venture into livestreaming.
MyEG (MYEG): Why Not Own It?
- My E.G. Services (MYEG MK) ‘s share price is pummelled down from the reopening sentiment, although investors missed the point on this given the range of services MyEG offers.
- Plenty of the upsides from the new JV in the Philippines and Indonesia are yet to contribute to the full extent due to COVID-19.
- Trades at 19x PER, a deep discount to its historical highs despite stable profitability and a healthy ROE at 23%.
Before it’s here, it’s on Smartkarma