Mid-market focused investment bank within SE Asia, Evolve Capital Advisory Pte Ltd

Evolve Capital Research

Mid-market focused investment bank within SE Asia

Evolve Capital Advisory Pte Ltd

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/gke-corp-ltd" target="_blank" data-smartkarma-citation="entities:15893:1" rel="noopener">GKE Corp Ltd (GKEC SP)</a> is an integrated provider of warehousing and logistics solutions that include general cargo storage, dangerous cargo storage, bonded and license warehousing services, amongst others.</li>
<li>It also has strategic investments, which includes an infrastructural materials and services business in China, as well as agriculture and retail and distribution in Singapore. </li>
<li>We initiate non-rated coverage on GKE Corporation. Since listing, the company has progressively broadened its service offerings to encompass marine and chemical logistics, and the storage of dangerous goods (DGs). </li>
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GKE Corp Ltd (GKEC SP) is an integrated provider of warehousing and logistics solutions that include general cargo storage, dangerous cargo storage, bonded and license warehousing services, amongst others.
It also has strategic investments, which includes an infrastructural materials and services business in China, as well as agriculture and retail and distribution in Singapore. 
We initiate non-rated coverage on GKE Corporation. Since listing, the company has progressively broadened its service offerings to encompass marine and chemical logistics, and the storage of dangerous goods (DGs). 


GKE Corporation Initiation - Firing on Multiple Cylinders

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

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<li>Consideration is 690p + 0.0359 new GXO shares, an implied equity value of £961 million. Multiples are 12.8x EV/Fwd EBITDA (vs. a median 11.3x for comparable M&amp;A transactions) and 33.3x Fwd P/E.</li>
<li>My TP for Clipper is 857p (DCF, WACC 9.5%, 9.0x 5y EBITDA exit, 1% perpetuity growth rate). The offer price seems fair, with 40% of synergies accruing to Clipper shareholders. </li>
<li>This is a friendly deal with a compelling 49% premium. Considering GXO's M&amp;A experience, the merger should be successful. The spread (as of 28 February closing share prices) is 2.7%.</li>
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Consideration is 690p + 0.0359 new GXO shares, an implied equity value of £961 million. Multiples are 12.8x EV/Fwd EBITDA (vs. a median 11.3x for comparable M&amp;A transactions) and 33.3x Fwd P/E.
My TP for Clipper is 857p (DCF, WACC 9.5%, 9.0x 5y EBITDA exit, 1% perpetuity growth rate). The offer price seems fair, with 40% of synergies accruing to Clipper shareholders. 
This is a friendly deal with a compelling 49% premium. Considering GXO's M&amp;A experience, the merger should be successful. The spread (as of 28 February closing share prices) is 2.7%.


GXO Logistics/Clipper Logistics: Recommended Cash & Stock Offer

United Kingdom

Clipper Logistics PLC provides logistics operation and services. The Company offers warehousing, customs warehousing, added value, garment handling, secure logistics, e-fulfillment, and transport services, as well as consolidation centers to business throughout the United Kingdom.

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Clipper Logistics PLC (CLG LN)

GKE Corporation Initiation - Firing on Multiple Cylinders

GKE Corp is an integrated provider of warehousing and logistics solutions that include general cargo storage, dangerous cargo storage, bonded and...

Evolve Capital Advisory Pte Ltd

GXO Logistics/Clipper Logistics: Recommended Cash & Stock Offer

This is a friendly offer with a compelling premium, likely to close. Considering GXO's deal experience, the merger should be successful. Gross...

Jesus Rodriguez Aguilar

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