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/gl-ltd" target="_blank" data-smartkarma-citation="entities:2540:1" rel="noopener">GL Ltd (GLL SP)</a> is an investment holding company with a core business in UK hotel management and operations. On Friday, GL announced a voluntary unconditional cash offer of S$0.70 per share from a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/guoco-group-ltd" target="_blank" data-smartkarma-citation="entities:5290:1" rel="noopener">Guoco Group Ltd (53 HK)</a>. The offer price of S$0.70 per share is a 25.0% premium to the last trading price of S$0.56 per share (14 January). </p><p>The minimum acceptance condition is the offeror and concert parties hold not less than 90% of the voting rights. GuocoLeisure Assets, which represents 70.84% of outstanding shares, has provided an irrecovable to accept the offer. The minimum acceptance condition can be reduced to more than 50% or waived, subject to the consent of the Securities Industry Council.</p><div class="content-highlight"><p>The modest premium to historical long-term multiples and share prices is unlikely to excite long-term shareholders. The offer price is largely designed to appeal to shareholders looking for a respite from the uncertain prospects of the hotels business due to the COVID-19 outbreak and Brexit. Overall, with the leeway on adjusting the minimum acceptance condition, we think that the bid has a good chance of succeeding. </p></div>

GL Ltd (GLL SP) is an investment holding company with a core business in UK hotel management and operations. On Friday, GL announced a voluntary unconditional cash offer of S$0.70 per share from a wholly-owned subsidiary of Guoco Group Ltd (53 HK). The offer price of S$0.70 per share is a 25.0% premium to the last trading price of S$0.56 per share (14 January). The minimum acceptance condition is the offeror and concert parties hold not less than 90% of the voting rights. GuocoLeisure Assets, which represents 70.84% of outstanding shares, has provided an irrecovable to accept the offer. The minimum acceptance condition can be reduced to more than 50% or waived, subject to the consent of the Securities Industry Council.The modest premium to historical long-term multiples and share prices is unlikely to excite long-term shareholders. The offer price is largely designed to appeal to shareholders looking for a respite from the uncertain prospects of the hotels business due to the COVID-19 outbreak and Brexit. Overall, with the leeway on adjusting the minimum acceptance condition, we think that the bid has a good chance of succeeding. 

GL Limited’s Voluntary Unconditional Offer by Guoco Group