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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ddh1-ltd" target="_blank" data-smartkarma-citation="entities:36022:1" rel="noopener">DDH1 (DDH AU)</a> has entered a SID with <a href="https://www.smartkarma.com/entities/perenti-global-ltd" target="_blank" data-smartkarma-citation="entities:20505:1" rel="noopener">Perenti Global (PRN AU)</a> at A$0.1238 cash plus 0.7111 PRN shares for each DDH share, a 17.4% premium to DDH’s 5-day VWAP.</li>
<li>The key conditions are shareholder scheme approval and ACCC clearance. Shareholders representing 38.0% of outstanding shares will vote in favour of the scheme.</li>
<li>The offer is attractive compared to peer multiples, and the net exchange ratio is fair on a 1-year basis. A critical risk is volatility risk around PRN shares.  </li>
</ul>



DDH1 (DDH AU) has entered a SID with Perenti Global (PRN AU) at A$0.1238 cash plus 0.7111 PRN shares for each DDH share, a 17.4% premium to DDH’s 5-day VWAP.
The key conditions are shareholder scheme approval and ACCC clearance. Shareholders representing 38.0% of outstanding shares will vote in favour of the scheme.
The offer is attractive compared to peer multiples, and the net exchange ratio is fair on a 1-year basis. A critical risk is volatility risk around PRN shares.  


DDH1 (DDH AU): Binding Offer from Perenti (PRN AU)

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Specialty mining driller <a href="https://www.smartkarma.com/entities/ddh1-ltd" target="_blank" data-smartkarma-citation="entities:36022:1" rel="noopener">DDH1 (DDH AU)</a> has announced a merger, by way of a Scheme, with <a href="https://www.smartkarma.com/entities/perenti-global-ltd" target="_blank" data-smartkarma-citation="entities:20505:1" rel="noopener">Perenti Global (PRN AU)</a>.</li>
<li>Under the proposed terms, DDH1 shareholders will receive for each DDH1 share held $0.1238 cash plus 0.7111 Perenti shares, for an implied value of A$1.01/share, or a 17.4% premium. </li>
<li>Directors and shareholders with a combined 38% of DDH1 shares have indicated an intention to vote in favour of the transaction. Scheme implementation is expected in early October 2023.</li>
</ul>


Specialty mining driller DDH1 (DDH AU) has announced a merger, by way of a Scheme, with Perenti Global (PRN AU).
Under the proposed terms, DDH1 shareholders will receive for each DDH1 share held $0.1238 cash plus 0.7111 Perenti shares, for an implied value of A$1.01/share, or a 17.4% premium. 
Directors and shareholders with a combined 38% of DDH1 shares have indicated an intention to vote in favour of the transaction. Scheme implementation is expected in early October 2023.


External broker reports(aggregated public sources), Moelis Australia Ltd

MA Moelis Australia

External broker reports(aggregated public sources)

Moelis Australia Ltd

We are an ASX-listed financial services firm specialising in asset management, lending, corporate advisory and equities. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>We have reviewed peer quarterly reports and note commentary on domestic market activity.</li><li>Competitors have reported lower utilisation rates vs pcp, as well as weather impacts.</li><li>While there have been fewer domestic junior raisings CYTD, momentum suggests an improving trend into the remainder of CY23.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We have reviewed peer quarterly reports and note commentary on domestic market activity.Competitors have reported lower utilisation rates vs pcp, as well as weather impacts.While there have been fewer domestic junior raisings CYTD, momentum suggests an improving trend into the remainder of CY23.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DDH1 - Well Placed to Capitalise on Exploration Momentum Recovery

<ul><li>Earnings in line: underlying 1H23 NPATA of $29.9m (+33% vs pcp) was in line with MAe $29.8m.</li><li>1H23 fully franked dividend of 3.33cps, +26% vs pcp.</li><li>Pre reported highlights included 1H23 EBITDA of $65.6m, +53% vs pcp, with top line growth driven by increases on pcp in rigs and shifts and sound performance from Swick, partially offset by marginally weaker utilisation.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Earnings in line: underlying 1H23 NPATA of $29.9m (+33% vs pcp) was in line with MAe $29.8m.1H23 fully franked dividend of 3.33cps, +26% vs pcp.Pre reported highlights included 1H23 EBITDA of $65.6m, +53% vs pcp, with top line growth driven by increases on pcp in rigs and shifts and sound performance from Swick, partially offset by marginally weaker utilisation.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DDH1 - Slower than Expected Start to CY23

<ul><li>Minor beat on key earnings. Operating EBITDA of $65.6m (+5% vs MAe $62.9m), underlying EBITA of $43.6m (+2% vs MAe $42.6m).</li><li>Operational metrics continued positive momentum vs pcp including revenue per shift +7.1%, average revenue per rig +6.3%, and rig count +8.0%, with rates increasing to address inflationary pressures.</li><li>Utilisation of 77% was flat vs pcp which was COVID impacted and a key metric for focus over coming periods.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Minor beat on key earnings. Operating EBITDA of $65.6m (+5% vs MAe $62.9m), underlying EBITA of $43.6m (+2% vs MAe $42.6m).Operational metrics continued positive momentum vs pcp including revenue per shift +7.1%, average revenue per rig +6.3%, and rig count +8.0%, with rates increasing to address inflationary pressures.Utilisation of 77% was flat vs pcp which was COVID impacted and a key metric for focus over coming periods.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ddh1 - Operational Momentum Continues, Utilisation in Focus

Australia

DDH1 Ltd provides mining support services. The Company offers drilling and critical geological information services. DDH1 serves customers in Australia.

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DDH1 (DDH AU)

DDH1 (DDH AU): Binding Offer from Perenti (PRN AU)

The offer is attractive compared to peer multiples, and the net exchange ratio is fair on a 1-year basis. A critical risk is volatility risk around...

Arun George

DDH1 To Merge With Perenti

This is done. And trading tight at a 1.9% gross spread to terms as I type. If you can take down borrow inexpensively, look to short Perenti, long...

David Blennerhassett

DDH1 - Well Placed to Capitalise on Exploration Momentum Recovery

While there have been fewer domestic junior raisings CYTD, momentum suggests an improving trend into the remainder of CY23.

MA Moelis Australia

DDH1 - Slower than Expected Start to CY23

Earnings in line: underlying 1H23 NPATA of $29.9m (+33% vs pcp) was in line with MAe $29.8m. 1H23 fully franked dividend of 3.33cps, +26% vs pcp.

MA Moelis Australia

Ddh1 - Operational Momentum Continues, Utilisation in Focus

Minor beat on key earnings. Operating EBITDA of $65.6m (+5% vs MAe $62.9m), underlying EBITA of $43.6m (+2% vs MAe $42.6m)

MA Moelis Australia

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