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

TPG Telecom/VHA Merger: ACCC Calls TPG’s Bluff

Vocus Group’s Generous Bid from EQT Tempered by History

TPG Telecom/VHA Merger: A High Stakes Gamble to Abandon Mobile Network Rollout

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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/vocus-communications-ltd" target="_blank" data-smartkarma-citation="entities:71:1">Vocus Communications (VOC AU)</a> is Australia’s fourth largest telecom operator which is in the midst of a three-year turnaround plan. Today, Vocus announced a non-binding proposal from <a href="https://www.smartkarma.com/entities/agl-energy-ltd" target="_blank" data-smartkarma-citation="entities:554:1">AGL Energy Ltd (AGL AU)</a> for A$4.85 cash per share. AGL’s proposal values Vocus at a market cap of A$3.0 billion and FY19 EV/EBITDA of 11.4x (CY2019 EV/EBITDA of 10.9x).</p><div class="content-highlight"><p>The takeover bid sent Vocus shares up 7.7% to A$4.12, which is still 15% below AGL’s bid. The shares closed materially below AGL’s offer as the market is understandably cautious on the prospect of a binding offer after <a href="https://www.smartkarma.com/entities/kkr-co-inc" target="_blank" data-smartkarma-citation="entities:27333:1">KKR &amp; Co Inc (KKR US)</a>, Affinity Equity Partners and most recently, EQT, dropped their bids during the due diligence process. Overall, we believe that AGL’s bid is attractive with a limited chance of a superior proposal.</p></div>

Vocus Communications (VOC AU) is Australia’s fourth largest telecom operator which is in the midst of a three-year turnaround plan. Today, Vocus announced a non-binding proposal from AGL Energy Ltd (AGL AU) for A$4.85 cash per share. AGL’s proposal values Vocus at a market cap of A$3.0 billion and FY19 EV/EBITDA of 11.4x (CY2019 EV/EBITDA of 10.9x).The takeover bid sent Vocus shares up 7.7% to A$4.12, which is still 15% below AGL’s bid. The shares closed materially below AGL’s offer as the market is understandably cautious on the prospect of a binding offer after KKR &amp; Co Inc (KKR US), Affinity Equity Partners and most recently, EQT, dropped their bids during the due diligence process. Overall, we believe that AGL’s bid is attractive with a limited chance of a superior proposal.

Vocus Group’s Tilt from AGL Energy Is Attractive but Not a Sure Thing