Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Earlier this month <a href="https://www.smartkarma.com/entities/1104" target="_blank" data-smartkarma-citation="entities:1104:1">Wesfarmers Ltd (WES AU)</a> bid for <a href="https://www.smartkarma.com/entities/13917" target="_blank" data-smartkarma-citation="entities:13917:1">Kidman Resources (KDR AU)</a> in a move that raised some eyebrows in the lithium sector. Wesfarmers had earlier gone after <a href="https://www.smartkarma.com/entities/20374" target="_blank" data-smartkarma-citation="entities:20374:1">Lynas Corp Ltd (LYC AU)</a> but that deal looks increasingly complex given the latter has several pending issues to be resolved in Malaysia. Yesterday Australian newspapers reported that several KDR investors were resisting the Wesfarmers offer as they say it undervalues the company.
This morning investors are informed that <a href="https://www.smartkarma.com/entities/16331" target="_blank" data-smartkarma-citation="entities:16331:1">Alliance Mineral Assets (AMS SP)</a> is placing 32.5M AUD worth of shares at 0.20 AUD/share to both <a href="https://www.smartkarma.com/entities/13914" target="_blank" data-smartkarma-citation="entities:13914:1">Galaxy Resources (GXY AU)</a> and <a href="https://www.smartkarma.com/entities/11366" target="_blank" data-smartkarma-citation="entities:11366:1">Jiangxi Special Electric A (002176 CH).  </a>The entire placement will result in 13% dilution for existing shareholders.
After the placement Galaxy will become Alliance's largest shareholder with an almost 12% stake. Jiangxi Special Electric will own just over 9% of the company.
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Officially this placement will help speed up the development of the Bald Hill deposit but the real reason for this share issuance is to get Galaxy over 10% so it has a blocking minority in case any other buyers would be circling Alliance Mineral.
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Over time a full takeover of Alliance by Galaxy is the only logical outcome. Tick Tock, how long will this take?

Earlier this month Wesfarmers Ltd (WES AU) bid for Kidman Resources (KDR AU) in a move that raised some eyebrows in the lithium sector. Wesfarmers had earlier gone after Lynas Corp Ltd (LYC AU) but that deal looks increasingly complex given the latter has several pending issues to be resolved in Malaysia. Yesterday Australian newspapers reported that several KDR investors were resisting the Wesfarmers offer as they say it undervalues the company.
This morning investors are informed that Alliance Mineral Assets (AMS SP) is placing 32.5M AUD worth of shares at 0.20 AUD/share to both Galaxy Resources (GXY AU) and Jiangxi Special Electric A (002176 CH).  The entire placement will result in 13% dilution for existing shareholders.
After the placement Galaxy will become Alliance's largest shareholder with an almost 12% stake. Jiangxi Special Electric will own just over 9% of the company.

Officially this placement will help speed up the development of the Bald Hill deposit but the real reason for this share issuance is to get Galaxy over 10% so it has a blocking minority in case any other buyers would be circling Alliance Mineral.

Over time a full takeover of Alliance by Galaxy is the only logical outcome. Tick Tock, how long will this take? 

Alliance Mineral (AMS SP): Galaxy Resources Now Largest Shareholder, Tick Tock Until Full Takeover?

Canada

Canaccord Genuity Group Inc. is an independent full service financial services firm. The Company provides investment products, brokerage services, and investment banking services to retail, institutional, and corporate clients.  Canaccord operates around the world including offices in Canada, Australia, the United Kingdom, France, Germany, Ireland, Hong Kong and China.

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Canaccord Genuity Group (CF CN)

Alliance Mineral (AMS SP): Galaxy Resources Now Largest Shareholder, Tick Tock Until Full Takeover?

Earlier this month Wesfarmers Ltd (WES AU) bid for Kidman Resources (KDR AU) in a move that raised some eyebrows in the lithium sector. Wesfarmers...

Nicolas Van Broekhoven

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