IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

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.

Equity Capital Markets

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<li>
<a href="https://www.smartkarma.com/entities/integral-corporation" target="_blank" data-smartkarma-citation="entities:40028:1" rel="noopener">Integral Corporation (5842 JP)</a> is an independent Japanese private equity firm seeking to raise about US$174 million. The pricing is on 4 September, and the listing is on 20 September. </li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/integral-corporation-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:110936" rel="noopener">Integral Corporation IPO: The Bull Case</a> and <a href="https://www.smartkarma.com/insights/integral-corporation-ipo-the-bear-case" target="_blank" data-smartkarma-citation="insights:111035" rel="noopener">Integral Corporation IPO: The Bear Case</a>. </li>
<li>In this note, we discuss forecasts and valuation. Our analysis suggests that the indicative IPO price range of JPY2,800-3,400 per share is unattractive. We would give the IPO a pass.</li>
</ul>



Integral Corporation (5842 JP) is an independent Japanese private equity firm seeking to raise about US$174 million. The pricing is on 4 September, and the listing is on 20 September. 
We previously discussed the IPO in Integral Corporation IPO: The Bull Case and Integral Corporation IPO: The Bear Case. 
In this note, we discuss forecasts and valuation. Our analysis suggests that the indicative IPO price range of JPY2,800-3,400 per share is unattractive. We would give the IPO a pass.


Integral Corporation IPO: Valuation Insights

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<li>
<a href="https://www.smartkarma.com/entities/nippon-steel-corporation" target="_blank" data-smartkarma-citation="entities:961:1" rel="noopener">Nippon Steel Corporation (5401 JP)</a> has announced it will acquire stakes in <a href="https://www.smartkarma.com/entities/g-j-steel-pcl" target="_blank" data-smartkarma-citation="entities:14759:1" rel="noopener">G J Steel Pcl (GJS TB)</a> and <a href="https://www.smartkarma.com/entities/g-steel-pcl" target="_blank" data-smartkarma-citation="entities:18121:1" rel="noopener">G Steel Pcl (GSTEL TB)</a>.</li>
<li>Nippon Steel has signed share and purchase agreements with the alternative investment unit of <a href="https://www.smartkarma.com/entities/ares-management-corp" target="_blank" data-smartkarma-citation="entities:28771:1" rel="noopener">Ares Management Corp (ARES US)</a>, the major shareholder of both Thai electric-furnace steelmakers. </li>
<li>Completion of the agreements will trigger Mandatory Tender Offers for both companies. These Offers will be unconditional. </li>
</ul>



Nippon Steel Corporation (5401 JP) has announced it will acquire stakes in G J Steel Pcl (GJS TB) and G Steel Pcl (GSTEL TB).
Nippon Steel has signed share and purchase agreements with the alternative investment unit of Ares Management Corp (ARES US), the major shareholder of both Thai electric-furnace steelmakers. 
Completion of the agreements will trigger Mandatory Tender Offers for both companies. These Offers will be unconditional. 


Nippon Steel's Mandatory Offers For Thailand's GJ Steel and G Steel

Aussie wealth manager <a href="https://www.smartkarma.com/entities/amp-ltd" target="_blank" data-smartkarma-citation="entities:678:1" rel="noopener">AMP Ltd (AMP AU)</a> has <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02301765-2A1260088?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it has received an indicative, non-binding, conditional proposal from US-based <a href="https://www.smartkarma.com/entities/ares-management-corp" target="_blank" data-smartkarma-citation="entities:28771:1" rel="noopener">Ares Management Corp (ARES US)</a>, by way of a Scheme. No price was mentioned.
The take-private proposal follows a tortuous period for what was once an Australian icon.  The final report of a royal commission last year exposed damaging internal practices - such as billing deceased customers and lying to regulators - culminating in net cash outflow and the exit of Catherine Brenner (chairman) and Brian Salter (group counsel).
Amidst the ongoing net outflow - which has continued into the 3Q20 - chairman David Murray resigned in August over his handling of a sexual harassment issue. Director John Fraser also resigned.
After completing the sale of its life insurance business to Resolution Life on the 1 July this year, AMP's chairman Debra Hazelton announced on the <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02276147-2A1247501?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">2 September</a> that the company was undertaking a review of its assets and businesses after receiving unsolicited interest in both. It is not clear whether Ares is interested in selected parts or the whole package.
Shares are up 20% as I type.
More below the fold.

Aussie wealth manager AMP Ltd (AMP AU) has announced it has received an indicative, non-binding, conditional proposal from US-based Ares Management Corp (ARES US), by way of a Scheme. No price was mentioned.
The take-private proposal follows a tortuous period for what was once an Australian icon.  The final report of a royal commission last year exposed damaging internal practices - such as billing deceased customers and lying to regulators - culminating in net cash outflow and the exit of Catherine Brenner (chairman) and Brian Salter (group counsel).
Amidst the ongoing net outflow - which has continued into the 3Q20 - chairman David Murray resigned in August over his handling of a sexual harassment issue. Director John Fraser also resigned.
After completing the sale of its life insurance business to Resolution Life on the 1 July this year, AMP's chairman Debra Hazelton announced on the 2 September that the company was undertaking a review of its assets and businesses after receiving unsolicited interest in both. It is not clear whether Ares is interested in selected parts or the whole package.
Shares are up 20% as I type.
More below the fold. 

United States

Ares Management Corporation operates as an asset management firm. The Firm focuses on tradable credit, direct lending, private equity, and real estate markets. The Company also invest in all levels of a company capital structure-from senior debt to common equity. Ares Management serves university endowments, pension and sovereign wealth funds, banks, and insurance companies.

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Ares Management (ARES US)

Integral Corporation IPO: Valuation Insights

In this note, we discuss forecasts and valuation. Our analysis suggests that the indicative IPO price range of JPY2,800-3,400 per share is...

Arun George

Nippon Steel's Mandatory Offers For Thailand's GJ Steel and G Steel

This looks done - play the spread here. I see the gross/annualised spread at 3.2%/14.4% assuming late Paril completion. That looks okay for what...

David Blennerhassett

AMP: Ares' Proposal For The Once Mighty

Private equity firm Ares Management is in talks to buy embattled wealth manager AMP, via a break-up of the 171-year-old company, or full control.

David Blennerhassett

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