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/propertyguru-group-limited" target="_blank" data-smartkarma-citation="entities:28149:1" rel="noopener">PropertyGuru (PGRU US)</a> entered into a definitive merger agreement with <a href="https://www.smartkarma.com/entities/eqt-ab" target="_blank" data-smartkarma-citation="entities:28922:1" rel="noopener">EQT (EQT SS)</a> at US$6.70 per share, a 51.9% premium to the undisturbed price of US$4.41 (21 May).</li>
<li>The shareholder vote is done (two-thirds voting threshold) due to <a href="https://www.smartkarma.com/entities/tpg-inc" target="_blank" data-smartkarma-citation="entities:35361:1" rel="noopener">TPG Inc (TPG US)</a>/<a href="https://www.smartkarma.com/entities/kkr-co-inc" target="_blank" data-smartkarma-citation="entities:27333:1" rel="noopener">KKR &amp; Co (KKR US)</a>’s support and drag-along rights relating to <a href="https://www.smartkarma.com/entities/rea-group-ltd" target="_blank" data-smartkarma-citation="entities:699:1" rel="noopener">REA Group Ltd (REA AU)</a>’s shares.  </li>
<li>This is a clean deal as there is no dissenting condition or requirement for country antitrust approvals. At the last close and for end-of-year payment, the gross/annualised spread is 2.3%/6.4%.</li>
</ul>



PropertyGuru (PGRU US) entered into a definitive merger agreement with EQT (EQT SS) at US$6.70 per share, a 51.9% premium to the undisturbed price of US$4.41 (21 May).
The shareholder vote is done (two-thirds voting threshold) due to TPG Inc (TPG US)/KKR &amp; Co (KKR US)’s support and drag-along rights relating to REA Group Ltd (REA AU)’s shares.  
This is a clean deal as there is no dissenting condition or requirement for country antitrust approvals. At the last close and for end-of-year payment, the gross/annualised spread is 2.3%/6.4%.


PropertyGuru (PGRU US): EQT’s US$6.70 Offer Is A Done Deal

<ul>
<li>On 22 July, <a href="https://www.smartkarma.com/entities/arvida-group-ltd" target="_blank" data-smartkarma-citation="entities:14485:1" rel="noopener">Arvida (ARV NZ)</a> entered a scheme implementation agreement with Stonepeak at NZ$1.70, a 65.0% premium to the undisturbed price.</li>
<li>The transaction will require OIO approval, statutory supervisors' consent and shareholder approval. The <a href="https://www.smartkarma.com/entities/metlifecare-ltd" target="_blank" data-smartkarma-citation="entities:19219:1" rel="noopener">Metlifecare Ltd (MET NZ)</a> precedent suggests that the OIO and statutory supervisor should be forthcoming.</li>
<li>The offer is attractive, and shareholders representing 18% of outstanding shares are supportive. At the last close and for a November payment, the gross/annualised spread was 4.9%/14.2%.  </li>
</ul>


On 22 July, Arvida (ARV NZ) entered a scheme implementation agreement with Stonepeak at NZ$1.70, a 65.0% premium to the undisturbed price.
The transaction will require OIO approval, statutory supervisors' consent and shareholder approval. The Metlifecare Ltd (MET NZ) precedent suggests that the OIO and statutory supervisor should be forthcoming.
The offer is attractive, and shareholders representing 18% of outstanding shares are supportive. At the last close and for a November payment, the gross/annualised spread was 4.9%/14.2%.  


Arvida Group (ARV NZ): Stonepeak’s Binding Proposal at NZ$1.70

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>On June 27, <a href="https://www.smartkarma.com/entities/keywords-studios-plc" target="_blank" data-smartkarma-citation="entities:23476:1" rel="noopener">Keywords Studios (KWS LN)</a> received an updated cash offer of 2,450p/share from EQT (3.9% lower than initial 2,550p), 66.7% premium, implied EV €2,405 million, 13.2x EV/fwd NTM EBITDA,</li>
<li>22.4x Fwd P/E. The likelihood of a strategic buyer making an offer is low, while the offer from EQT is opportunistic, which will seek to merge Keywords with Virtuos.</li>
<li>The revised lower offer and the small extension to the PUSU deadline do not inspire optimism. Nevertheless, EQT remains a credible bidde. Gross spread stands at 5.9%. Maintain long.</li>
</ul>


On June 27, Keywords Studios (KWS LN) received an updated cash offer of 2,450p/share from EQT (3.9% lower than initial 2,550p), 66.7% premium, implied EV €2,405 million, 13.2x EV/fwd NTM EBITDA,
22.4x Fwd P/E. The likelihood of a strategic buyer making an offer is low, while the offer from EQT is opportunistic, which will seek to merge Keywords with Virtuos.
The revised lower offer and the small extension to the PUSU deadline do not inspire optimism. Nevertheless, EQT remains a credible bidde. Gross spread stands at 5.9%. Maintain long.


EQT/Keywords Studios: Lower Revised Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/keywords-studios-plc" target="_blank" data-smartkarma-citation="entities:23476:1" rel="noopener">Keywords Studios (KWS LN)</a> is in advanced discussions with EQT regarding a 2,550p/share possible cash offer (+1.76p final dividend), which the Board is minded to recommend. PUSU deadline is 15 June.</li>
<li>Premium (including divi) is c.74%; the implied equity value is c. €2,363 million and the implied EV is c. €2,477 million. The offer seems fair vs. the median of comparables. </li>
<li>The offer is pitched at a level that cannot be refused, even considering that Keywords Studios seemed grossly mispriced before the offer from EQT. Gross spread is 11.7%. Long.</li>
</ul>



Keywords Studios (KWS LN) is in advanced discussions with EQT regarding a 2,550p/share possible cash offer (+1.76p final dividend), which the Board is minded to recommend. PUSU deadline is 15 June.
Premium (including divi) is c.74%; the implied equity value is c. €2,363 million and the implied EV is c. €2,477 million. The offer seems fair vs. the median of comparables. 
The offer is pitched at a level that cannot be refused, even considering that Keywords Studios seemed grossly mispriced before the offer from EQT. Gross spread is 11.7%. Long.


EQT/Keywords Studios: An Offer You Can't Refuse

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perficient-inc" target="_blank" data-smartkarma-citation="entities:19838:1" rel="noopener">Perficient Inc (PRFT US)</a> agreed to be acquired by EQT, for $76/share in cash, 75% premium, 51% premium to 30-day VWAP, and c. $3 billion EV.</li>
<li>I understand EQT has opted to present an offer that the Board could not refuse, on both EV/Fwd EBITDA and Fwd P/E basis.</li>
<li>Spread is 3.6%/6.2% (gross/annualised, assuming settlement by 16 December). Long.</li>
</ul>



Perficient Inc (PRFT US) agreed to be acquired by EQT, for $76/share in cash, 75% premium, 51% premium to 30-day VWAP, and c. $3 billion EV.
I understand EQT has opted to present an offer that the Board could not refuse, on both EV/Fwd EBITDA and Fwd P/E basis.
Spread is 3.6%/6.2% (gross/annualised, assuming settlement by 16 December). Long.


EQT to Acquire Perficient for $3.0 Billion

Sweden

EQT AB operates as an investment firm. The Company invests in equity, ventures, infrastructure, and real estate properties. EQT serves customers worldwide.

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

EQT (EQT SS)

PropertyGuru (PGRU US): EQT’s US$6.70 Offer Is A Done Deal

This is a clean deal; the vote is done, and there are no dissenting conditions or country antitrust approvals. At the last close and for end-of...

Arun George

Arvida Group (ARV NZ): Stonepeak’s Binding Proposal at NZ$1.70

The offer is attractive, and shareholders representing 18% of outstanding shares are supportive. At the last close and for a November payment, the...

Arun George

EQT/Keywords Studios: Lower Revised Offer

On June 27, Keywords received an updated (lower) cash offer of 2,450p/share from EQT, 66.7% premium, implied EV €2,405 million, 13.2x EV/fwd NTM...

Jesus Rodriguez Aguilar

EQT/Keywords Studios: An Offer You Can't Refuse

Keywords Studios (KWS LN) is in advanced discussions with EQT regarding a 2,550p/share possible cash offer (+1.76p final dividend), which the Board...

Jesus Rodriguez Aguilar

EQT to Acquire Perficient for $3.0 Billion

Perficient Inc (PRFT US) agreed to be acquired by EQT, for $76/share in cash, 75% premium, 51% premium to 30-day VWAP, and c. $3 billion EV.

Jesus Rodriguez Aguilar

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)