Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Back in <a href="https://www.financialstandard.com.au/news/pacific-equity-partners-to-purchase-asx-perpetual-registrars-19426" target="_blank" rel="noopener">August 2005</a>, Private Equity Partners acquired share registry outfit ASX Perpetual Registrars (APR) for ~A$132mn. PEP followed with the acquisition of Telstra's fund administrator Australian Administration Services, which was rebranded Link Administration, which subsequently acquired APR.
After further, substantial investments and tech upgrades, PEP IPO'ed <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a> in October 2015 at $6.37/share, the top end of the range. PEP cleared out its holding in September 2016 at A$8.38/share. 
Link has morphed since PEP's exit, significantly growing its domestic and global operations, via the acquisition of UK-based Capital Asset Services in <a href="https://www.linkgroup.com/media/Link-Group-CAPITA-ASSET-SERVICES-Acquisition-web-release.pdf" target="_blank" rel="noopener">2017</a> (for A$1.493bn); the Property Exchange Australia (known as PEXA), Australia's first digital property settlement platform, acquired by a Link-led consortium (alongside CBA and Morgan Stanley) in 2018 for <a href="https://www.computerworld.com/article/3469078/cba-link-group-and-morgan-stanley-snap-up-pexa.html" target="_blank" rel="noopener">$1.6bn</a>, which increased Link's shareholding to 44.2% from 19.8%; and the acquisition of Pepper Group's European loan servicing, advisory, and asset management business for A$266mn in January this year.
<h3>The New News</h3>
Link has announced its has received a conditional, non-binding indicative proposal from a consortium comprising PEP and the Carlyle Group, by way of a Scheme. The indicative cash price is A$5.20/share, a 30% premium to last close.
Perpetual, holding 9.65% of shares out, said it would vote for a firm Offer of $5.20/share and above.
This is a non-binding proposal and there is no guarantee a firm offer will unfold. 
But this is a business with which PEP is well acquainted, having orchestrated and developed Link's initial business 15 years ago.
As always, more below the fold.

Back in August 2005, Private Equity Partners acquired share registry outfit ASX Perpetual Registrars (APR) for ~A$132mn. PEP followed with the acquisition of Telstra's fund administrator Australian Administration Services, which was rebranded Link Administration, which subsequently acquired APR.
After further, substantial investments and tech upgrades, PEP IPO'ed Link Administration Holdings (LNK AU) in October 2015 at $6.37/share, the top end of the range. PEP cleared out its holding in September 2016 at A$8.38/share. 
Link has morphed since PEP's exit, significantly growing its domestic and global operations, via the acquisition of UK-based Capital Asset Services in 2017 (for A$1.493bn); the Property Exchange Australia (known as PEXA), Australia's first digital property settlement platform, acquired by a Link-led consortium (alongside CBA and Morgan Stanley) in 2018 for $1.6bn, which increased Link's shareholding to 44.2% from 19.8%; and the acquisition of Pepper Group's European loan servicing, advisory, and asset management business for A$266mn in January this year.
The New News
Link has announced its has received a conditional, non-binding indicative proposal from a consortium comprising PEP and the Carlyle Group, by way of a Scheme. The indicative cash price is A$5.20/share, a 30% premium to last close.
Perpetual, holding 9.65% of shares out, said it would vote for a firm Offer of $5.20/share and above.
This is a non-binding proposal and there is no guarantee a firm offer will unfold. 
But this is a business with which PEP is well acquainted, having orchestrated and developed Link's initial business 15 years ago.
As always, more below the fold.

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

<a href="https://www.smartkarma.com/entities/challenger-ltd" target="_blank" data-smartkarma-citation="entities:16870:1" rel="noopener">Challenger Ltd (CGF AU)</a> aims to raise around US$184m (A$270m) to shore up its balance sheet. The company has been facing a tough time of late and the shares remain well below their recent highs. However, it's unclear if the capital raising will do much to change that.In this insight, I'll run the deal through our ECM framework and talk about the deal dynamics.

Challenger Ltd (CGF AU) aims to raise around US$184m (A$270m) to shore up its balance sheet. The company has been facing a tough time of late and the shares remain well below their recent highs. However, it's unclear if the capital raising will do much to change that.In this insight, I'll run the deal through our ECM framework and talk about the deal dynamics.

Challenger Placement - Room for New Shareholders But We Remain Lukewarm

Credit Analyst, BondAdviser

Jack Pobjoy

Credit Analyst

Australian bonds & fixed income research

BondAdviser

BondAdviser is the central reference point for intelligent information on Australian fixed income markets. We help you make informed decisions by providing unbiased research, transparent pricing data, analytics, portfolio tools and education.

BondAdviser has the broadest coverage of retail-accessible ASX-listed and over-the-counter Australian bonds and fixed income securities. We make it easy for you to review and compare investments before you place an order with your broker or dealer.

Credit

Today <a href="https://www.smartkarma.com/entities/15546" target="_blank" data-smartkarma-citation="entities:15546:1">Centuria Capital (CNI AU)</a> and <a href="https://www.smartkarma.com/entities/16870" target="_blank" data-smartkarma-citation="entities:16870:1">Challenger Ltd (CGF AU)</a> reported results for the full year ended 30 June 2018 (FY18) with both companies in a strong growth phase. <a href="https://www.smartkarma.com/entities/443" target="_blank" data-smartkarma-citation="entities:443:1">Australia And New Zealand Banking Group (Anz) (ANZ AU)</a> and <a href="https://www.smartkarma.com/entities/15" target="_blank" data-smartkarma-citation="entities:15:1">National Australia Bank (NAB AU)</a> also released brief third-quarter updates (Q318), voicing a continuation of themes throughout the Australian banking system including high compliance costs, measured capital accumulation and steady (albeit skewed) asset quality.
Today, I…

Today Centuria Capital (CNI AU) and Challenger Ltd (CGF AU) reported results for the full year ended 30 June 2018 (FY18) with both companies in a strong growth phase. Australia And New Zealand Banking Group (Anz) (ANZ AU) and National Australia Bank (NAB AU) also released brief third-quarter updates (Q318), voicing a continuation of themes throughout the Australian banking system including high compliance costs, measured capital accumulation and steady (albeit skewed) asset quality.
Today, I…

Australian Reporting Season: Centuria Capital, Challenger, ANZ (Q3) & NAB (Q3)

Director - Research, Consulting and Advisory, BondAdviser

Nicholas Yaxley

Director - Research, Consulting and Advisory

On 27 March 2017, Suncorp Group Limited (SUN) announced a new transaction, Suncorp Capital Notes (Prospective ASX Code: SUNPF). The purpose of this transaction is to provide regulatory capital but more specifically, it will be treated as Additional Tier 1 capital. The indicative size of the offer is [$250 million] but SUN retain the ability to change the issue size. The notes will be offered through a Securityholder, Broker Firm and Institutional Offer and are expected to be issued on the 5th of May 2017.These securities are structured as perpetual, unsecured, convertible, redeemable &amp; resalable, subordinated notes. Distributions are discretionary, fully franked, floating rate, non-cumulative and subject to payment conditions. These will be paid on a quarterly basis based on a calculation equal to 90-Day BBSW plus an interest margin of [4.10-4.30%] set via bookbuild, multiplied by (1 – Company Tax Rate). If a distribution is not paid, SUN is prevented from paying any distributions to ordinary shareholders until full distribution is paid on a subsequent payment date.SUN is the non-operating holding company (NOHC) of all companies within the Suncorp Group. Most claims SUN has on its operating subsidiaries rank behind the operating company's creditors, hence the group is higher risk issuer than the bank, general insurance, or life subsidiaries.This security has no maturity date but is scheduled for mandatory exchange into SUN ordinary shares on 17 June 2024 (or later) subject to conversion conditions. At the issuer’s discretion, and subject to APRA approval, the notes may be exchanged (converted, redeemed or resold) on 17 June 2022. This security also contains loss- absorbing terms and conditions known as Non-Viability Trigger Event. Upon the occurrence of this event, the security will be converted into ordinary shares without the protection of conversion conditions. For the purposes of the conversion calculation, the maximum conversion number will be set at issue date. If conversion cannot occur for any reason the notes will be written off and all holders rights terminated. Summary details of the transaction are listed in the table below:

On 27 March 2017, Suncorp Group Limited (SUN) announced a new transaction, Suncorp Capital Notes (Prospective ASX Code: SUNPF). The purpose of this transaction is to provide regulatory capital but more specifically, it will be treated as Additional Tier 1 capital. The indicative size of the offer is [$250 million] but SUN retain the ability to change the issue size. The notes will be offered through a Securityholder, Broker Firm and Institutional Offer and are expected to be issued on the 5th of May 2017.These securities are structured as perpetual, unsecured, convertible, redeemable &amp; resalable, subordinated notes. Distributions are discretionary, fully franked, floating rate, non-cumulative and subject to payment conditions. These will be paid on a quarterly basis based on a calculation equal to 90-Day BBSW plus an interest margin of [4.10-4.30%] set via bookbuild, multiplied by (1 – Company Tax Rate). If a distribution is not paid, SUN is prevented from paying any distributions to ordinary shareholders until full distribution is paid on a subsequent payment date.SUN is the non-operating holding company (NOHC) of all companies within the Suncorp Group. Most claims SUN has on its operating subsidiaries rank behind the operating company's creditors, hence the group is higher risk issuer than the bank, general insurance, or life subsidiaries.This security has no maturity date but is scheduled for mandatory exchange into SUN ordinary shares on 17 June 2024 (or later) subject to conversion conditions. At the issuer’s discretion, and subject to APRA approval, the notes may be exchanged (converted, redeemed or resold) on 17 June 2022. This security also contains loss- absorbing terms and conditions known as Non-Viability Trigger Event. Upon the occurrence of this event, the security will be converted into ordinary shares without the protection of conversion conditions. For the purposes of the conversion calculation, the maximum conversion number will be set at issue date. If conversion cannot occur for any reason the notes will be written off and all holders rights terminated. Summary details of the transaction are listed in the table below:

On 28th February 2017, Challenger Ltd (CGF) announced a new issue namely Challenger Capital Notes 2 (prospective ASX Code: CGFPB). The purpose of this transaction is to provide Regulatory Capital for the group but more specifically, it will be treated as additional Tier 1 capital. The indicative size of the offer is [$350 million] but CGF retain the ability to change the issue size.The notes will be offered to eligible holders of ordinary shares or Challenger Capital Notes 1 (Securityholder offer), and through a Broker Firm and Institutional offer. These securities are structured as perpetual, unsecured, convertible, transferable, redeemable and subordinated notes.  Distributions are expected to be discretionary, fully franked, floating rate, non-cumulative and subject to payment conditions. Interest payments will be paid quarterly in arrears at a rate equal to 90- Day BBSW plus an interest margin determined under bookbuild (guidance range of 4.40-4.60%), multiplied by (1 –Tax Rate). If a distribution is not paid, the issuer is prevented from paying any distributions to ordinary shareholders until a full distribution is paid on a subsequent payment date.Summary details of the transaction are listed in the table below:

On 28th February 2017, Challenger Ltd (CGF) announced a new issue namely Challenger Capital Notes 2 (prospective ASX Code: CGFPB). The purpose of this transaction is to provide Regulatory Capital for the group but more specifically, it will be treated as additional Tier 1 capital. The indicative size of the offer is [$350 million] but CGF retain the ability to change the issue size.The notes will be offered to eligible holders of ordinary shares or Challenger Capital Notes 1 (Securityholder offer), and through a Broker Firm and Institutional offer. These securities are structured as perpetual, unsecured, convertible, transferable, redeemable and subordinated notes.  Distributions are expected to be discretionary, fully franked, floating rate, non-cumulative and subject to payment conditions. Interest payments will be paid quarterly in arrears at a rate equal to 90- Day BBSW plus an interest margin determined under bookbuild (guidance range of 4.40-4.60%), multiplied by (1 –Tax Rate). If a distribution is not paid, the issuer is prevented from paying any distributions to ordinary shareholders until a full distribution is paid on a subsequent payment date.Summary details of the transaction are listed in the table below:

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Challenger Ltd (CGF AU)

Link Admin/PEP: All Together Now. Again

Four years after exiting a company it built from scratch, PEP returns with an indicative proposal to take private the largest provider of...

David Blennerhassett

Challenger Placement - Room for New Shareholders But We Remain Lukewarm

Challenger Ltd (CGF AU) aims to raise around US$184m (A$270m) to shore up its balance sheet. The company has been facing a tough time of late and...

Sumeet Singh

Australian Reporting Season: Centuria Capital, Challenger, ANZ (Q3) & NAB (Q3)

Today Centuria Capital (CNI AU) and Challenger Ltd (CGF AU) reported results for the full year ended 30 June 2018 (FY18) with both companies in a...

BondAdviser

New Issue: Suncorp Capital Notes

On 27 March 2017, Suncorp Group Limited (SUN) announced a new transaction, Suncorp Capital Notes (Prospective ASX Code: SUNPF). The purpose of this...

BondAdviser

New Issue: Challenger Capital Notes 2

On 28th February 2017, Challenger Ltd (CGF) announced a new issue namely Challenger Capital Notes 2 (prospective ASX Code: CGFPB). The purpose of...

BondAdviser

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)