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.

Event-Driven

<p><a href="https://www.smartkarma.com/entities/iress-ltd" target="_blank" data-smartkarma-citation="entities:15342:1" rel="noopener">Iress Ltd (IRE AU)</a> is a financial services software group. Iress revealed a non-binding indicative proposal from EQT to acquire it via a scheme of arrangement. EQT is offering A$15.91 cash per share before franking credits, consisting of a cash consideration of A$15.75 per share and an FY21 interim dividend up to A$0.16 per share. The bid represents a 45.3% premium to the undisturbed share price on 9 June 2021 (prior to media speculation regarding a stake build by an unknown participant). </p><p>Iress has agreed to grant EQT a 30-day exclusivity period to conduct due diligence. The Iress board also intends to unanimously recommend the proposal pending the entry into a scheme implementation deed and the absence of better offers.</p><div class="content-highlight"><p>Pushing for a better price is part of the M&amp;A game. The Board had rejected EQT’s previous two offers as they did not represent compelling value. The Board was able to secure a sweetened bid that offers an 8% bump to EQT’s first offer of A$14.80 per share, through a defence strategy that involved hosting an investor day outlining plans to generate shareholder returns through ambitious financial targets. Overall, we think EQT’s latest bid is attractive and will likely succeed. At the last close price of A$5.19, the shares are trading at a 4.7% gross spread to the indicative offer.</p></div>

Iress Ltd (IRE AU) is a financial services software group. Iress revealed a non-binding indicative proposal from EQT to acquire it via a scheme of arrangement. EQT is offering A$15.91 cash per share before franking credits, consisting of a cash consideration of A$15.75 per share and an FY21 interim dividend up to A$0.16 per share. The bid represents a 45.3% premium to the undisturbed share price on 9 June 2021 (prior to media speculation regarding a stake build by an unknown participant). Iress has agreed to grant EQT a 30-day exclusivity period to conduct due diligence. The Iress board also intends to unanimously recommend the proposal pending the entry into a scheme implementation deed and the absence of better offers.Pushing for a better price is part of the M&amp;A game. The Board had rejected EQT’s previous two offers as they did not represent compelling value. The Board was able to secure a sweetened bid that offers an 8% bump to EQT’s first offer of A$14.80 per share, through a defence strategy that involved hosting an investor day outlining plans to generate shareholder returns through ambitious financial targets. Overall, we think EQT’s latest bid is attractive and will likely succeed. At the last close price of A$5.19, the shares are trading at a 4.7% gross spread to the indicative offer.

Iress Ltd

EQT a Step Closer to Acquiring Iress