IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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<li>
<a href="https://www.smartkarma.com/entities/avarga-ltd" target="_blank" data-smartkarma-citation="entities:13105:1" rel="noopener">Avarga Ltd (AVARGA SP)</a> disclosed a scheme offer from Dr Tong (Chairman) at S$2.70 per share. There is also an alternative combined consideration of S$2.00 per share and 1 RPS. </li>
<li>I estimate that the combined consideration is worth S$2.75. The offer is reasonable as it is above book value (P/NTA of 1.04x) and represents an all-time high.</li>
<li>However, the offer values Avarga at a discount to the Taiga stake and at a lower EV/EBITDA multiple than the 2024 MGO. Nevertheless, the scheme vote is low risk.</li>
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Avarga Ltd (AVARGA SP) disclosed a scheme offer from Dr Tong (Chairman) at S$2.70 per share. There is also an alternative combined consideration of S$2.00 per share and 1 RPS. 
I estimate that the combined consideration is worth S$2.75. The offer is reasonable as it is above book value (P/NTA of 1.04x) and represents an all-time high.
However, the offer values Avarga at a discount to the Taiga stake and at a lower EV/EBITDA multiple than the 2024 MGO. Nevertheless, the scheme vote is low risk.


Avarga (AVARGA SP): Scheme Value Below the Value of Taiga Stake, but Likely Done

Canada

Goodfellow Inc. distributes and remanufactures sawn timber, lumber, prefinished and unfinished flooring, wood panel products and wood products provided by kiln drying, wood preservation and milling.

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Goodfellow (GDL CN)

Avarga (AVARGA SP): Scheme Value Below the Value of Taiga Stake, but Likely Done

The offer values Avarga at a discount to the Taiga stake and at a lower EV/EBITDA multiple than the 2024 MGO. Nevertheless, the scheme vote is low...

Arun George

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