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

Li & Fung Scheme Document, Silchester's Vote

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/li-fung-ltd" target="_blank" data-smartkarma-citation="entities:6290:1" rel="noopener">Li &amp; Fung Ltd (494 HK)</a> is a global merchandise supply chain manager. It assists retail brands source products from manufacturers in Asia along with managing production and logistics processes. On 20 March, it announced a privatisation bid of HK$1.25 per scheme share from the Fung family and <a href="https://www.smartkarma.com/entities/global-logistic-properties-ltd" target="_blank" data-smartkarma-citation="entities:2894:1" rel="noopener">Global Logistic Properties (GLP SP)</a>, a logistics warehouse operator and investor.</p><div class="content-highlight"><p>The forward P/E implied by the privatisation price is attractive in comparison to historical and peer P/E multiples. However, the privatisation proposal also looks like an attempt to take advantage of the share price weakness caused in part due to the US-China trade tensions and covid-19 outbreak. Notwithstanding the 150% premium to last close, we think that the privatisation bid has a good chance of not getting shareholder approval. </p></div>

Li &amp; Fung Ltd (494 HK) is a global merchandise supply chain manager. It assists retail brands source products from manufacturers in Asia along with managing production and logistics processes. On 20 March, it announced a privatisation bid of HK$1.25 per scheme share from the Fung family and Global Logistic Properties (GLP SP), a logistics warehouse operator and investor.The forward P/E implied by the privatisation price is attractive in comparison to historical and peer P/E multiples. However, the privatisation proposal also looks like an attempt to take advantage of the share price weakness caused in part due to the US-China trade tensions and covid-19 outbreak. Notwithstanding the 150% premium to last close, we think that the privatisation bid has a good chance of not getting shareholder approval. 

Li & Fung’s Opportunistic Privatisation Bid?