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Equity Bottom-Up

EMIS reported FY22 results that were in line with management expectations. Revenue increased 4% y-o-y, adjusted operating profit increased 10% and adjusted EPS grew 10%. The company closed the year with net cash of £45.9m, reduced from the prior year due to several bolt-on acquisitions in the year. A final dividend of 21.1p was declared for a full year dividend of 38.7p.

EMIS reported FY22 results that were in line with management expectations. Revenue increased 4% y-o-y, adjusted operating profit increased 10% and adjusted EPS grew 10%. The company closed the year with net cash of £45.9m, reduced from the prior year due to several bolt-on acquisitions in the year. A final dividend of 21.1p was declared for a full year dividend of 38.7p. 

The Competition and Markets Authority (CMA) has rejected the remedy proposed by United Health (the bidder) and EMIS to reduce the risks to competition and has announced it is launching a Phase 2 investigation into the acquisition. The bidder and EMIS have confirmed they will proceed with the Phase 2 investigation. Due to the investigation, they have extended the long stop date for the deal and extended the period during which EMIS shareholders will be entitled to dividends by one year.

The Competition and Markets Authority (CMA) has rejected the remedy proposed by United Health (the bidder) and EMIS to reduce the risks to competition and has announced it is launching a Phase 2 investigation into the acquisition. The bidder and EMIS have confirmed they will proceed with the Phase 2 investigation. Due to the investigation, they have extended the long stop date for the deal and extended the period during which EMIS shareholders will be entitled to dividends by one year.

EMIS Group - Deal to proceed, pending Phase 2 investigation

The Competition and Markets Authority (CMA) has finished its Phase 1 investigation and has concluded that it has concerns that the UnitedHealth takeover of EMIS could reduce competition in certain areas. It has given both parties five working days to offer legally binding proposals in lieu of a Phase 2 investigation. EMIS expects to be able to provide a further update on or around 31 March, which is the statutory deadline for the CMA to determine whether these undertakings are acceptable in principle.

The Competition and Markets Authority (CMA) has finished its Phase 1 investigation and has concluded that it has concerns that the UnitedHealth takeover of EMIS could reduce competition in certain areas. It has given both parties five working days to offer legally binding proposals in lieu of a Phase 2 investigation. EMIS expects to be able to provide a further update on or around 31 March, which is the statutory deadline for the CMA to determine whether these undertakings are acceptable in principle. 

EMIS Group - More work to do to finalise takeover

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Big picture: <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post (6178 JP)</a> selling 29% of <a href="https://www.smartkarma.com/entities/japan-post-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:838:1" rel="noopener">Japan Post Bank (7182 JP)</a> is a Very Big Offering at ¥1.236trln. 80/20 dom/international. A TOUGH sell. 1.089bn shares is 4x float. </li>
<li>
<a href="https://www.smartkarma.com/entities/downer-edi-ltd" target="_blank" data-smartkarma-citation="entities:12350:1" rel="noopener">Downer EDI (DOW AU)</a>'s CEO resigned ahead of announcing accounting irregularities last December. The CFO resigned this week after Downer announced another profit downgrade. Now the chairman is exiting. </li>
<li>Hong Kong broadband play <a href="https://www.smartkarma.com/entities/hkbn-ltd" target="_blank" data-smartkarma-citation="entities:289:1" rel="noopener">HKBN Ltd (1310 HK)</a>said it has been approached by I Squares' HGC. No pricing announced, but talks continue. </li>
</ul>


Big picture: Japan Post (6178 JP) selling 29% of Japan Post Bank (7182 JP) is a Very Big Offering at ¥1.236trln. 80/20 dom/international. A TOUGH sell. 1.089bn shares is 4x float. 

Downer EDI (DOW AU)'s CEO resigned ahead of announcing accounting irregularities last December. The CFO resigned this week after Downer announced another profit downgrade. Now the chairman is exiting. 
Hong Kong broadband play HKBN Ltd (1310 HK)said it has been approached by I Squares' HGC. No pricing announced, but talks continue. 


Last Week in Event SPACE: Japan Post/Japan Post Bank, Downer, HKBN, Golden Energy

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>A CMA's Phase One investigation period began on 23 January to investigate whether the deal may result in a substantial lessening of competition. Deadline for the decision is 17 March.</li>
<li>EMIS anticipates closing late Q1/early Q2 2023. The Permitted Final Dividend amounts to 21.1p. No final dividend has yet been declared, although theoretically it could happen around 17 March.</li>
<li>Spread is 2.96%/29.39% (gross/annualised), assuming settlement by 15 April, as good as it gets for a stock with an average daily turnover of c.GBP7 million in the European space.</li>
</ul>


A CMA's Phase One investigation period began on 23 January to investigate whether the deal may result in a substantial lessening of competition. Deadline for the decision is 17 March.
EMIS anticipates closing late Q1/early Q2 2023. The Permitted Final Dividend amounts to 21.1p. No final dividend has yet been declared, although theoretically it could happen around 17 March.
Spread is 2.96%/29.39% (gross/annualised), assuming settlement by 15 April, as good as it gets for a stock with an average daily turnover of c.GBP7 million in the European space.


UnitedHealth/​EMIS: Estimated Calendar, Spread

United Kingdom

EMIS Group provides connected healthcare software and systems for healthcare professionals across the United Kingdom. Its solutions serve primary, community, acute, and social care, as well as community pharmacies, offering integrated care technology, patient-facing services, and data analytics. The company is headquartered in Leeds, United Kingdom, and was founded in 1987.

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EMIS Group (EMIS LN)

EMIS Group - FY22 results in line

EMIS reported FY22 results that were in line with management expectations. Revenue increased 4% y-o-y, adjusted operating profit increased 10% and...

Edison Investment Research

EMIS Group - Deal to proceed, pending Phase 2 investigation

The Competition and Markets Authority (CMA) has rejected the remedy proposed by United Health (the bidder) and EMIS to reduce the risks to...

Edison Investment Research

EMIS Group - More work to do to finalise takeover

The Competition and Markets Authority (CMA) has finished its Phase 1 investigation and has concluded that it has concerns that the UnitedHealth...

Edison Investment Research

Last Week in Event SPACE: Japan Post/Japan Post Bank, Downer, HKBN, Golden Energy

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

UnitedHealth/EMIS: Estimated Calendar, Spread

The CMA said it will investigate whether the deal may result in a substantial lessening of competition. Deadline for Phase One decision is 17...

Jesus Rodriguez Aguilar

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

EMIS Group - FY22 results in line

EMIS reported FY22 results that were in line with management expectations. Revenue increased 4% y-o-y, adjusted operating profit increased 10% and...

Edison Investment Research

EMIS Group - Deal to proceed, pending Phase 2 investigation

The Competition and Markets Authority (CMA) has rejected the remedy proposed by United Health (the bidder) and EMIS to reduce the risks to...

Edison Investment Research

EMIS Group - More work to do to finalise takeover

The Competition and Markets Authority (CMA) has finished its Phase 1 investigation and has concluded that it has concerns that the UnitedHealth...

Edison Investment Research

Last Week in Event SPACE: Japan Post/Japan Post Bank, Downer, HKBN, Golden Energy

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

UnitedHealth/​EMIS: Estimated Calendar, Spread

The CMA said it will investigate whether the deal may result in a substantial lessening of competition. Deadline for Phase One decision is 17...

Jesus Rodriguez Aguilar

UnitedHealth/EMIS: Estimated Calendar, Spread