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

AusNet’s in a Contested Takeover Battle Between Brookfield and APA

AusNet Enters into a Binding Agreement with Brookfield

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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.

Event-Driven

<p><a href="https://www.smartkarma.com/entities/ausnet-services" target="_blank" data-smartkarma-citation="entities:10293:1" rel="noopener">Ausnet Services (AST AU)</a> is a diversified Australian energy infrastructure business with over $11 billion of electricity and gas network and connection assets. AusNet revealed a conditional, non-binding indicative offer from Brookfield Asset Management. The indicative offer of A$2.50 per share is a 26% premium to the unaffected price of A$1.98 (17 September). The offer price will be reduced by any dividends declared or paid prior to the scheme taking effect.</p><p>The Board noted the offer comes after Brookfield first bid $2.35 per share on 30 August and later bumped it to $2.45 per share. Consequently, Brookfield’s latest offer represents a 6.4% bump to its first offer.  </p><p>The Board has decided to provide Brookfield exclusive due diligence access. If Brookfield puts forward a binding offer, the Board will unanimously recommend the offer in the absence of a superior proposal.  </p><div class="content-highlight"><p>We think that the indicative offer is attractive both in terms of historical multiples and share prices. We think that Brookfield would not make the offer without some indication that the two major shareholders (Singapore Power and State Grid of China) were open to the offer. The indicative offer is subject to FIRB approval which should not be a hurdle as Brookfield is an established long-term infrastructure investor in Australia. At the last close price of A$2.36, the shares are trading at a 5.9% gross spread to the indicative offer.</p></div>

Ausnet Services (AST AU) is a diversified Australian energy infrastructure business with over $11 billion of electricity and gas network and connection assets. AusNet revealed a conditional, non-binding indicative offer from Brookfield Asset Management. The indicative offer of A$2.50 per share is a 26% premium to the unaffected price of A$1.98 (17 September). The offer price will be reduced by any dividends declared or paid prior to the scheme taking effect.The Board noted the offer comes after Brookfield first bid $2.35 per share on 30 August and later bumped it to $2.45 per share. Consequently, Brookfield’s latest offer represents a 6.4% bump to its first offer.  The Board has decided to provide Brookfield exclusive due diligence access. If Brookfield puts forward a binding offer, the Board will unanimously recommend the offer in the absence of a superior proposal.  We think that the indicative offer is attractive both in terms of historical multiples and share prices. We think that Brookfield would not make the offer without some indication that the two major shareholders (Singapore Power and State Grid of China) were open to the offer. The indicative offer is subject to FIRB approval which should not be a hurdle as Brookfield is an established long-term infrastructure investor in Australia. At the last close price of A$2.36, the shares are trading at a 5.9% gross spread to the indicative offer.

Ausnet Services

AusNet Receives an Offer from Brookfield