IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

On Tuesday Ant Financial, <a href="https://www.smartkarma.com/entities/787" target="_blank" data-smartkarma-citation="entities:787:1">Alibaba Group Holding Ltd (BABA US)</a>’s payments affiliate, issued a press release stating that its proposed $1.2bn acquisition of <a href="https://www.smartkarma.com/entities/16877" target="_blank" data-smartkarma-citation="entities:16877:1">Moneygram International Inc (MGI US)</a> has been blocked by the Committee on Foreign Investment in the United States (Cfius). Since 2015, Ant Financial has embarked on a series of deals to extend its reach beyond China into other parts of Asia. Moneygram was an important acquisition to help Ant Financial realise its ambition to grow user numbers to 2 billion within the next decade.  The proposed acquisition of Moneygram was a real statement of intent and would significantly bolster Ant Financial's aspirations to expand outside China. Ant Financial has little direct exposure to US consumers. The acquisition of Moneygram would give it over 2 billion bank, mobile and virtual accounts in the US and abroad. Not only would this significantly expand its user base, but customers could also use Ant Financial’s products more frequently as it would be easier for travellers to use them in over 200 countries.Ant Financial could temper its US ambitions and replicate its proven Asian strategy to grow its presence through JV and minority investments. However, the Trump administration has endorsed a bill now in Congress that would broaden Cfius’ remit. The new bill would expand Cfius’ jurisdiction to include certain JVs and minority investments in US companies. If it becomes law, this could severely hamper Ant Financial's US aspirations.

On Tuesday Ant Financial, Alibaba Group Holding Ltd (BABA US)’s payments affiliate, issued a press release stating that its proposed $1.2bn acquisition of Moneygram International Inc (MGI US) has been blocked by the Committee on Foreign Investment in the United States (Cfius). Since 2015, Ant Financial has embarked on a series of deals to extend its reach beyond China into other parts of Asia. Moneygram was an important acquisition to help Ant Financial realise its ambition to grow user numbers to 2 billion within the next decade.  The proposed acquisition of Moneygram was a real statement of intent and would significantly bolster Ant Financial's aspirations to expand outside China. Ant Financial has little direct exposure to US consumers. The acquisition of Moneygram would give it over 2 billion bank, mobile and virtual accounts in the US and abroad. Not only would this significantly expand its user base, but customers could also use Ant Financial’s products more frequently as it would be easier for travellers to use them in over 200 countries.Ant Financial could temper its US ambitions and replicate its proven Asian strategy to grow its presence through JV and minority investments. However, the Trump administration has endorsed a bill now in Congress that would broaden Cfius’ remit. The new bill would expand Cfius’ jurisdiction to include certain JVs and minority investments in US companies. If it becomes law, this could severely hamper Ant Financial's US aspirations. 

Alibaba: Ant Financial's US Aspirations in Jeopardy