Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>I tally 36 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.</li>
<li>Four new deals were discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/pepper-money-ltd-australia" target="_blank" data-smartkarma-citation="entities:24157:1" rel="noopener">Pepper Money (PPM AU)</a>, <a href="https://www.smartkarma.com/entities/mcj-co-ltd" target="_blank" data-smartkarma-citation="entities:14132:1" rel="noopener">MCJ Co Ltd (6670 JP)</a>, <a href="https://www.smartkarma.com/entities/br-holdings-corp" target="_blank" data-smartkarma-citation="entities:19365:1" rel="noopener">Br Holdings (1726 JP)</a>, and <a href="https://www.smartkarma.com/entities/alleanza-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:29288:1" rel="noopener">Alleanza Holdings Co Ltd (3546 JP)</a>.</li>
<li>Key updates/news also took place on: <a href="https://www.smartkarma.com/entities/dongfeng-motor-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:910:1" rel="noopener">Dongfeng Motor (489 HK)</a>, <a href="https://www.smartkarma.com/entities/mandom-corp" target="_blank" data-smartkarma-citation="entities:8353:1" rel="noopener">Mandom Corp (4917 JP)</a>, <a href="https://www.smartkarma.com/entities/yutaka-giken-co-ltd" target="_blank" data-smartkarma-citation="entities:4033:1" rel="noopener">Yutaka Giken (7229 JP)</a>. and <a href="https://www.smartkarma.com/entities/minmetals-land-ltd" target="_blank" data-smartkarma-citation="entities:1917:1" rel="noopener">Minmetals Land (230 HK)</a>.</li>
</ul>


I tally 36 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
Four new deals were discussed on Smartkarma this week: Pepper Money (PPM AU), MCJ Co Ltd (6670 JP), Br Holdings (1726 JP), and Alleanza Holdings Co Ltd (3546 JP).
Key updates/news also took place on: Dongfeng Motor (489 HK), Mandom Corp (4917 JP), Yutaka Giken (7229 JP). and Minmetals Land (230 HK).


Asia-Pac M&A Weekly Wrap: Pepper Money, MCJ, Br Holdings, Alleanza, Dongfeng Motor, Mandom

<ul>
<li>Reportedly, international money transfer play <a href="https://www.smartkarma.com/entities/ofx-group-ltd" target="_blank" data-smartkarma-citation="entities:8376:1" rel="noopener">OFX Group (OFX AU)</a> is in the crosshairs.</li>
<li>Last week OFX <a href="https://announcements.asx.com.au/asxpdf/20260205/pdf/06vzgksh9c5mbs.pdf" target="_blank" rel="noopener">announced</a> a strategic review amid its 3Q26 trading update, to “explore a range of organic and inorganic opportunities” following “an increasing level of inbound inorganic interest”.</li>
<li>
OFX's share price is beaten up here. In late 2015, <a href="https://www.smartkarma.com/entities/western-union-co" target="_blank" data-smartkarma-citation="entities:16761:1" rel="noopener">Western Union Co (WU US)</a> tabled a A$3.50-A$3.70/share NBIO, but subsequently walked. </li>
</ul>


Reportedly, international money transfer play OFX Group (OFX AU) is in the crosshairs.
Last week OFX announced a strategic review amid its 3Q26 trading update, to “explore a range of organic and inorganic opportunities” following “an increasing level of inbound inorganic interest”.

OFX's share price is beaten up here. In late 2015, Western Union Co (WU US) tabled a A$3.50-A$3.70/share NBIO, but subsequently walked. 


OFX Group (OFX AU): On Western Union (Potentially) Returning To The Trough

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.

<ul>
<li>In response to an AFR article, <a href="https://www.smartkarma.com/entities/pepper-money-ltd-australia" target="_blank" data-smartkarma-citation="entities:24157:1" rel="noopener">Pepper Money (PPM AU)</a> disclosed a non-binding scheme proposal from <a href="https://www.smartkarma.com/entities/challenger-ltd" target="_blank" data-smartkarma-citation="entities:16870:1" rel="noopener">Challenger Ltd (CGF AU)</a> under which Challenger and KKR will jointly acquire Pepper. </li>
<li>The offer is at A$2.60, a 47.7% premium to the undisturbed price of A$1.76 and a 15.0% premium to the last close. The Board has granted due diligence access. </li>
<li>The NBIO is attractive compared to peer multiples and historical trading ranges. The presence of KKR (the largest shareholder) in the consortium suggests a high probability of a binding proposal.</li>
</ul>


In response to an AFR article, Pepper Money (PPM AU) disclosed a non-binding scheme proposal from Challenger Ltd (CGF AU) under which Challenger and KKR will jointly acquire Pepper. 
The offer is at A$2.60, a 47.7% premium to the undisturbed price of A$1.76 and a 15.0% premium to the last close. The Board has granted due diligence access. 
The NBIO is attractive compared to peer multiples and historical trading ranges. The presence of KKR (the largest shareholder) in the consortium suggests a high probability of a binding proposal.


Pepper Money (PPM AU): Challenger and KKR’s Attractive NBIO

<ul>
<li>This morning (9th Feb), leading non-bank lender <a href="https://www.smartkarma.com/entities/pepper-money-ltd-australia" target="_blank" data-smartkarma-citation="entities:24157:1" rel="noopener">Pepper Money (PPM AU)</a>  <a href="https://announcements.asx.com.au/asxpdf/20260209/pdf/06w2xl642f3455.pdf" target="_blank" rel="noopener">confirmed</a> KKR and <a href="https://www.smartkarma.com/entities/challenger-ltd" target="_blank" data-smartkarma-citation="entities:16870:1" rel="noopener">Challenger Ltd (CGF AU)</a> have submitted an NBIO by way of a Scheme.</li>
<li>KKR/CGF are offering A$2.60/share, a 47.7% premium to undisturbed. And ~1.49x P/B (based on 1H25 numbers). KKR currently holds <a href="https://announcements.asx.com.au/asxpdf/20250411/pdf/06hncksdd9ldxh.pdf" target="_blank" rel="noopener">60.34%</a>.  </li>
<li>CGF announced it would hold no more than 25% in Pepper Money, if delisted. CGF is down 3.6%. </li>
</ul>


This morning (9th Feb), leading non-bank lender Pepper Money (PPM AU)  confirmed KKR and Challenger Ltd (CGF AU) have submitted an NBIO by way of a Scheme.
KKR/CGF are offering A$2.60/share, a 47.7% premium to undisturbed. And ~1.49x P/B (based on 1H25 numbers). KKR currently holds 60.34%.  
CGF announced it would hold no more than 25% in Pepper Money, if delisted. CGF is down 3.6%. 


Pepper Money (PPM AU): KKR/Challenger's NBIO

<ul>
<li>On 22 July, <a href="https://www.smartkarma.com/entities/insignia-financial-ltd" target="_blank" data-smartkarma-citation="entities:12349:1" rel="noopener">Insignia Financial (IFL AU)</a> entered a scheme implementation deed with CC Capital at A$4.80, a 4.0% discount to its previous non-binding offer of A$5.00.</li>
<li>The key conditions are regulatory (APRA, FIRB, ACCC, FCA) and shareholder approvals. Shareholders should be supportive as the offer resulted from an auction. </li>
<li>The offer is reasonable in comparison to historical trading ranges, peer multiples and precedent transaction multiples. The timing of regulatory approvals is the key risk.</li>
</ul>


On 22 July, Insignia Financial (IFL AU) entered a scheme implementation deed with CC Capital at A$4.80, a 4.0% discount to its previous non-binding offer of A$5.00.
The key conditions are regulatory (APRA, FIRB, ACCC, FCA) and shareholder approvals. Shareholders should be supportive as the offer resulted from an auction. 
The offer is reasonable in comparison to historical trading ranges, peer multiples and precedent transaction multiples. The timing of regulatory approvals is the key risk.


Insignia Financial (IFL AU): CC Capital’s Binding Offer at A$4.80

Australia

Challenger Limited is an investment management firm  The Company offers annuities and other retirement income products as well as manages assets for domestic and international clients.

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Challenger Ltd (CGF AU)

Asia-Pac M&A Weekly Wrap: Pepper Money, MCJ, Br Holdings, Alleanza, Dongfeng Motor, Mandom

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

OFX Group (OFX AU): On Western Union (Potentially) Returning To The Trough

There's no firm or non-binding Offer. Trading well below five-year historical metrics; unsurprising given trading updates. Western Union may be...

David Blennerhassett

Pepper Money (PPM AU): Challenger and KKR’s Attractive NBIO

The NBIO is attractive compared to peer multiples and historical trading ranges. The presence of KKR (the largest shareholder) in the consortium...

Arun George

Pepper Money (PPM AU): KKR/Challenger's NBIO

Indicative terms are solid. KKR knows this company inside and out. Trading at gross spread of 17%. Despite the non-binding nature, if not in, I'd...

David Blennerhassett

Insignia Financial (IFL AU): CC Capital’s Binding Offer at A$4.80

Timing is the key risk as the offer is long-dated. Shareholders should be supportive as the offer resulted from an auction and the turnaround plan...

Arun George

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