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

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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/regis-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:2086:1" rel="noopener">Regis Healthcare (REG AU)</a> is one of the largest providers of residential aged care in Australia. Regis revealed a non-binding indicative offer from Washington H. Soul Pattinson and Company (WHSP) and Bryan Dorman, Regis' co-founder. The indicative offer of A$1.85 per share is a 25% premium to the last close price. The offer includes both cash and scrip alternatives, the scrip being shares in a newly incorporated acquisition entity.</p><p>The aged care industry has been hard hit by ongoing funding challenges, the impact of the extended Royal Commission and the COVID-19 pandemic. The depressed share price of three main listed players Regis, <a href="https://www.smartkarma.com/entities/estia-health-ltd" target="_blank" data-smartkarma-citation="entities:77:1" rel="noopener">Estia Health (EHE AU)</a> and <a href="https://www.smartkarma.com/entities/japara-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:14760:1" rel="noopener">Japara Healthcare (JHC AU)</a> has resulted in rumours about potential suitors.</p><div class="content-highlight"><p>We think that indicative offer is opportunistic and is particularly unattractive for long-term shareholders. However, a rival bidder emerging is low due to Bryan Dorman’s presence in the consortium. Nevertheless, this non-binding indicative offer lays a marker for the intrinsic value of the shares and gives the Board an opportunity to negotiate a bump. </p></div>

Regis Healthcare (REG AU) is one of the largest providers of residential aged care in Australia. Regis revealed a non-binding indicative offer from Washington H. Soul Pattinson and Company (WHSP) and Bryan Dorman, Regis' co-founder. The indicative offer of A$1.85 per share is a 25% premium to the last close price. The offer includes both cash and scrip alternatives, the scrip being shares in a newly incorporated acquisition entity.The aged care industry has been hard hit by ongoing funding challenges, the impact of the extended Royal Commission and the COVID-19 pandemic. The depressed share price of three main listed players Regis, Estia Health (EHE AU) and Japara Healthcare (JHC AU) has resulted in rumours about potential suitors.We think that indicative offer is opportunistic and is particularly unattractive for long-term shareholders. However, a rival bidder emerging is low due to Bryan Dorman’s presence in the consortium. Nevertheless, this non-binding indicative offer lays a marker for the intrinsic value of the shares and gives the Board an opportunity to negotiate a bump. 

Regis Healthcare Gets a Non-Binding Indicative Offer