Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today, a Nikkei article suggested (after other media suggested last week) that <a href="https://www.smartkarma.com/entities/renault-sa" target="_blank" data-smartkarma-citation="entities:21536:1" rel="noopener">Renault SA (RNO FP)</a> and <a href="https://www.smartkarma.com/entities/nissan-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:72:1" rel="noopener">Nissan Motor (7201 JP)</a> have come to agreement about their new deal.</li>
<li>Post-Close, an announcement. Two striking things about this "agreement" a) it comes many months after they started negotiating, and b) we have few details, and c) we're missing a bit.</li>
<li>Renault agrees to cap voting rights in Nissan. Nissan agrees to invest in RNO's EV spinoff, and so far, they agree to strengthen the Alliance. What's missing is interesting/key.</li>
</ul>


Today, a Nikkei article suggested (after other media suggested last week) that Renault SA (RNO FP) and Nissan Motor (7201 JP) have come to agreement about their new deal.
Post-Close, an announcement. Two striking things about this "agreement" a) it comes many months after they started negotiating, and b) we have few details, and c) we're missing a bit.
Renault agrees to cap voting rights in Nissan. Nissan agrees to invest in RNO's EV spinoff, and so far, they agree to strengthen the Alliance. What's missing is interesting/key.


Renault & Nissan "Agree" On New Terms - A Diet Nothing🍔, Exchangeable into Shaq Fingerguns

<ul>
<li>In April, a Bloomberg <a href="https://www.bloomberg.com/news/articles/2022-04-22/renault-is-said-to-explore-nissan-stake-sale-to-support-ev-shift" target="_blank" rel="noopener">story</a> said <a href="https://www.smartkarma.com/entities/renault-sa" target="_blank" data-smartkarma-citation="entities:21536:1" rel="noopener">Renault SA (RNO FP)</a> might sell shares in <a href="https://www.smartkarma.com/entities/nissan-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:72:1" rel="noopener">Nissan Motor (7201 JP)</a> to support its investment in EVs. They might sell to Nissan, others.</li>
<li>Renault shares popped hard, this two months after CEO Luca de Meo had said Renault might split, investing in and listing its EV business separately.  But since then? Crickets.</li>
<li>Over the weekend, we have news talks are coming to a head. My feeling? The results won't be pretty - a messy agreement which inspires nobody, but <em>probably still works</em>.</li>
</ul>


In April, a Bloomberg story said Renault SA (RNO FP) might sell shares in Nissan Motor (7201 JP) to support its investment in EVs. They might sell to Nissan, others.
Renault shares popped hard, this two months after CEO Luca de Meo had said Renault might split, investing in and listing its EV business separately.  But since then? Crickets.
Over the weekend, we have news talks are coming to a head. My feeling? The results won't be pretty - a messy agreement which inspires nobody, but probably still works.


Renault & Nissan - Capital Manoeuvres In the Dark

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Zhejiang Leapmotor Technologie / Equity Capital Markets

<ul>
<li>Leapmotor (LM) aims to raise around US$1bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.</li>
<li>It focuses on the mid- to high-end segment in China’s NEV market with a price range of RMB150,000-300,000. As of end FY21, it had delivered a total of 52,832 cars.</li>
<li>In this note, we talk about the not so positive aspects of the deal.</li>
</ul>


Leapmotor (LM) aims to raise around US$1bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.
It focuses on the mid- to high-end segment in China’s NEV market with a price range of RMB150,000-300,000. As of end FY21, it had delivered a total of 52,832 cars.
In this note, we talk about the not so positive aspects of the deal.


Leapmotor Pre-IPO - The Negatives - Related Party Sanctions, Lags Peers

<ul>
<li>On Friday, a Bloomberg article suggested <a href="https://www.smartkarma.com/entities/renault-sa" target="_blank" data-smartkarma-citation="entities:21536:1" rel="noopener">Renault SA (RNO FP)</a> is considering selling some of its 43% stake in <a href="https://www.smartkarma.com/entities/nissan-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:72:1" rel="noopener">Nissan Motor (7201 JP)</a> to help fund its efforts in EVs.</li>
<li>Sources were "people familiar with the matter." Since 2018, Bloomberg and Les Echos have been the outlets which do "scoops" on the Renault/Nissan relationship, but they are not always right.</li>
<li>However, it raises some interesting questions and possibilities. And given the prices, it makes the decision somewhat uncomfortable for both. </li>
</ul>


On Friday, a Bloomberg article suggested Renault SA (RNO FP) is considering selling some of its 43% stake in Nissan Motor (7201 JP) to help fund its efforts in EVs.
Sources were "people familiar with the matter." Since 2018, Bloomberg and Les Echos have been the outlets which do "scoops" on the Renault/Nissan relationship, but they are not always right.
However, it raises some interesting questions and possibilities. And given the prices, it makes the decision somewhat uncomfortable for both. 


Renault (RNO FP) To Sell Nissan (7201 JP) Shares? Not Yet, and Not Yet Positive Nissan.

Research from EqualOcean, EqualOcean

EqualOcean

Research from EqualOcean

EqualOcean is an investment research firm and information service provider focusing on China's Technology, Automotive and Consumer Internet sectors. With unique research and due diligence methodology, we provide tailored insights into a wide range of industries and companies, empowering our clients' value-added decisions.

Founded in 2014, EqualOcean is headquartered in Beijing and has offices in Shanghai, Shenzhen and New York.

Thematic (Sector/Industry)

<ul><li>An eventful year - The semiconductor shortage is both accidental and inevitable</li><li>Dawn in 2022 - The crunch is likely to be relieved in 2022 but it will take years to fully meet the industry's needs. </li><li>Favored electric cars - Albeit auto brands can't get components on time, many of them are now prioritizing EV production. </li></ul>

An eventful year - The semiconductor shortage is both accidental and inevitableDawn in 2022 - The crunch is likely to be relieved in 2022 but it will take years to fully meet the industry's needs. Favored electric cars - Albeit auto brands can't get components on time, many of them are now prioritizing EV production. 

Tesla Can Deal with Supply Chain Shortage, Unlike Most Chinese Peers

France

Renault SA designs, manufactures, markets, and repairs passenger cars and light commercial vehicles. The Company also provides financing and service solutions, including credit for new and used vehicles.

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Renault SA (RNO FP)

Renault & Nissan "Agree" On New Terms - A Diet Nothing🍔, Exchangeable into Shaq Fingerguns

Renault and Nissan finally announce the "details" of a deal which was basically done a year ago. But they were still negotiating hours ago, and...

Travis Lundy

Renault & Nissan - Capital Manoeuvres In the Dark

Renault and Nissan have been dancing around co-investment in Renault's planned EV spinout company for months, and now CEO de Meo has a Nov 8...

Travis Lundy

Renault (RNO FP) To Sell Nissan (7201 JP) Shares? Not Yet, and Not Yet Positive Nissan.

On Friday, the French state announced an arrest warrant for Carlos Ghosn, and the Q1 call was full of vague talk of Alliance changes not yet...

Travis Lundy

Tesla Can Deal with Supply Chain Shortage, Unlike Most Chinese Peers

BYD is positioned well, too. The global automotive industry is facing a deepening supply chain crisis

EqualOcean

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Renault & Nissan "Agree" On New Terms - A Diet Nothing🍔, Exchangeable into Shaq Fingerguns

Renault and Nissan finally announce the "details" of a deal which was basically done a year ago. But they were still negotiating hours ago, and...

Travis Lundy

Renault & Nissan - Capital Manoeuvres In the Dark

Renault and Nissan have been dancing around co-investment in Renault's planned EV spinout company for months, and now CEO de Meo has a Nov 8...

Travis Lundy

Leapmotor Pre-IPO - The Negatives - Related Party Sanctions, Lags Peers

Leapmotor (LM) aims to raise around US$1bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015. In this note, we talk...

Sumeet Singh

Renault (RNO FP) To Sell Nissan (7201 JP) Shares? Not Yet, and Not Yet Positive Nissan.

On Friday, the French state announced an arrest warrant for Carlos Ghosn, and the Q1 call was full of vague talk of Alliance changes not yet...

Travis Lundy

Tesla Can Deal with Supply Chain Shortage, Unlike Most Chinese Peers

BYD is positioned well, too. The global automotive industry is facing a deepening supply chain crisis

EqualOcean