IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate Group (IAP AU)</a> has granted <a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a> and PGGM six-week exclusive due diligence. The Board intends to recommend a binding offer.</li>
<li>The indicative offer of A$1.90 and the maximum potential FY22 distribution of 4.67 cents implies a total offer of A$1.9467 per security. </li>
<li>The offer price is attractive in terms of historical multiples and security prices. At the last close, the gross spread of the offer including permissible dividends is 5.2%. </li>
</ul>



Irongate Group (IAP AU) has granted Charter Hall (CHC AU) and PGGM six-week exclusive due diligence. The Board intends to recommend a binding offer.
The indicative offer of A$1.90 and the maximum potential FY22 distribution of 4.67 cents implies a total offer of A$1.9467 per security. 
The offer price is attractive in terms of historical multiples and security prices. At the last close, the gross spread of the offer including permissible dividends is 5.2%. 


Irongate Grants Due Diligence to Charter Hall and PGGM

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate (IAP AU)</a> has <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02480691_PS-2A1353504?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> a non-binding proposal from <a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a> and Dutch pension fund PGGM at $1.90/security, by way of a Scheme, plus a possible $0.0467/security distribution.</li>
<li>Importantly, the proposal contains a call option over 360 Capital’s 19.9% security holding in IAP.</li>
<li>IAP is considering the Offer. Expect the board to grant due diligence.  This proposal is a 10.5% premium to 360 Capital's Offer, before taking into account the distribution. </li>
</ul>



Irongate (IAP AU) has announced a non-binding proposal from Charter Hall (CHC AU) and Dutch pension fund PGGM at $1.90/security, by way of a Scheme, plus a possible $0.0467/security distribution.
Importantly, the proposal contains a call option over 360 Capital’s 19.9% security holding in IAP.
IAP is considering the Offer. Expect the board to grant due diligence.  This proposal is a 10.5% premium to 360 Capital's Offer, before taking into account the distribution. 


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>
<a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a> has come over the top to bid A$1.9/stapled security for <a href="https://www.smartkarma.com/entities/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate Group (IAP AU)</a>. That's 10.5% higher than the last bid from <a href="https://www.smartkarma.com/entities/360-capital-group-ltd" target="_blank" data-smartkarma-citation="entities:11865:1" rel="noopener">360 Capital (TGP AU)</a>. </li>
<li>
<a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a> have also signed an MOU with <a href="https://www.smartkarma.com/entities/360-capital-group-ltd" target="_blank" data-smartkarma-citation="entities:11865:1" rel="noopener">360 Capital (TGP AU)</a> that takes 360 Capital out of any bidding war.</li>
<li>At a 23.4% premium to pro forma NTA, we think the <a href="https://www.smartkarma.com/entities/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate Group (IAP AU)</a> Board will give the partnership due diligence access and the deal should complete.</li>
</ul>



Charter Hall (CHC AU) has come over the top to bid A$1.9/stapled security for Irongate Group (IAP AU). That's 10.5% higher than the last bid from 360 Capital (TGP AU). 

Charter Hall (CHC AU) have also signed an MOU with 360 Capital (TGP AU) that takes 360 Capital out of any bidding war.
At a 23.4% premium to pro forma NTA, we think the Irongate Group (IAP AU) Board will give the partnership due diligence access and the deal should complete.


Charter Hall (CHC AU)'s Offer for Irongate Group (IAP AU)

<ul>
<li>Property group Irongate <a href="https://www.smartkarma.com/entities/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate Group (IAP AU)</a> has <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02474876-2A1350857?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">rejected</a> the third unsolicited offer from <a href="https://www.smartkarma.com/entities/360-capital-group-ltd" target="_blank" data-smartkarma-citation="entities:11865:1" rel="noopener">360 Capital (TGP AU)</a> in as many months. </li>
<li>Under the latest proposal, 360 Capital was offering $1.72 /security, a 7.2% increase over the initial approach. </li>
<li>Trading slightly below the rejected terms. Expect 360 Capital to return to the trough. </li>
</ul>


Property group Irongate Irongate Group (IAP AU) has rejected the third unsolicited offer from 360 Capital (TGP AU) in as many months. 
Under the latest proposal, 360 Capital was offering $1.72 /security, a 7.2% increase over the initial approach. 
Trading slightly below the rejected terms. Expect 360 Capital to return to the trough. 


Irongate (IAP AU) Rejects Third Proposal From 360 Capital

<a href="https://www.smartkarma.com/entities/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate Group (IAP AU)</a>, previously called the Investec Australia Property Fund, is a property trust dual-listed on the ASX and JSE. IAP disclosed an unsolicited and indicative non-binding proposal from <a href="https://www.smartkarma.com/entities/360-capital-group-ltd" target="_blank" data-smartkarma-citation="entities:11865:1" rel="noopener">360 Capital (TGP AU)</a> and <a href="https://www.smartkarma.com/entities/360-capital-reit" target="_blank" data-smartkarma-citation="entities:29046:1" rel="noopener">360 Capital REIT (TOT AU)</a> at an indicative headline price of A$1.65 cash per security. The offer price will be reduced by any distributions declared or paid from the date of the proposal. As IAP anticipates a 1HFY22 dividend of A$0.0453 per security, the indicative offer less the 1HFY22 distribution is A$1.6047 per security, a 7.0% premium to the unaffected price of A$1.50 (on 15 October). 360 Capital is IAP largest shareholder and represents 129.0 million IAP securities or 19.99% of IAP securities. The holding is through 360 Capital REIT and 360 Capital Group. 360 Capital built its stake from January 2021 at an average entry price of A$1.41 per security. 360 Capital is seeking a six-week exclusive due diligence period. IAP responded by noting the offer was highly conditional and uncertain particularly regarding financing. The indicative proposal is conditional on ESR Australia entering into an agreement with 360 Capital to buy several undisclosed assets from IAP’s portfolio, on terms yet to be agreed. The proposal also requires entry into new debt facilities with Citibank.  360 Capital relationship with IAP is verging on the hostile. In August, shareholders voted against the election to the board of two 360 Capital candidates after IAP’s Chairman cautioned that 360 Capital could seek to gain effective control of IAP below its fundamental value, through the board. The situation is also reminiscent of 360 Capital Group failed takeover attempt for <a href="https://www.smartkarma.com/entities/e-p-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:27077:1" rel="noopener">E&amp;P Financial Group Ltd (EP1 AU)</a>. <div class="content-highlight">We think that indicative offer is modest in comparison to historical multiples and share prices. Given 360 Capital strained relationship with the IAP board, it is likely that 360 Capital could go hostile by launching an off-market takeover offer. At the last close price, IAP is trading at 2.9% gross spread to the indicative offer less the 1HFY22 distribution.</div>

Irongate Group (IAP AU), previously called the Investec Australia Property Fund, is a property trust dual-listed on the ASX and JSE. IAP disclosed an unsolicited and indicative non-binding proposal from 360 Capital (TGP AU) and 360 Capital REIT (TOT AU) at an indicative headline price of A$1.65 cash per security. The offer price will be reduced by any distributions declared or paid from the date of the proposal. As IAP anticipates a 1HFY22 dividend of A$0.0453 per security, the indicative offer less the 1HFY22 distribution is A$1.6047 per security, a 7.0% premium to the unaffected price of A$1.50 (on 15 October). 360 Capital is IAP largest shareholder and represents 129.0 million IAP securities or 19.99% of IAP securities. The holding is through 360 Capital REIT and 360 Capital Group. 360 Capital built its stake from January 2021 at an average entry price of A$1.41 per security. 360 Capital is seeking a six-week exclusive due diligence period. IAP responded by noting the offer was highly conditional and uncertain particularly regarding financing. The indicative proposal is conditional on ESR Australia entering into an agreement with 360 Capital to buy several undisclosed assets from IAP’s portfolio, on terms yet to be agreed. The proposal also requires entry into new debt facilities with Citibank.  360 Capital relationship with IAP is verging on the hostile. In August, shareholders voted against the election to the board of two 360 Capital candidates after IAP’s Chairman cautioned that 360 Capital could seek to gain effective control of IAP below its fundamental value, through the board. The situation is also reminiscent of 360 Capital Group failed takeover attempt for E&amp;P Financial Group Ltd (EP1 AU). We think that indicative offer is modest in comparison to historical multiples and share prices. Given 360 Capital strained relationship with the IAP board, it is likely that 360 Capital could go hostile by launching an off-market takeover offer. At the last close price, IAP is trading at 2.9% gross spread to the indicative offer less the 1HFY22 distribution.

Irongate’s Unsolicited Offer from 360 Capital

Australia

Irongate Group operates as a real estate investment trust. The Company focuses on investment in commercial real estate assets. Investec Australia Property Fund serves customers worldwide.

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Irongate Group (IAP AU)

Irongate Grants Due Diligence to Charter Hall and PGGM

Irongate has granted Charter Hall and PGGM six-week exclusive due diligence. The offer price is attractive. At the last close, the gross spread of...

Arun George

Irongate: Charter Hall Stakes Its Claim

Though still indicative, this proposal, with 360 Capital's support, appears all stitched up. Currently trading at a gross/annualised spread of 3%...

David Blennerhassett

Charter Hall (CHC AU)'s Offer for Irongate Group (IAP AU)

Charter Hall has made an indicative non-binding proposal at A$1.9 (excluding a A$0.0467 distribution) for Irongate Group. The MOU with 360 Capital...

Brian Freitas

Irongate (IAP AU) Rejects Third Proposal From 360 Capital

With a >19% stake, 360 Capital is not content to stay put. Plus they have ESR on the side to indirectly fund the acquisition. ARA/ESR is no doubt...

David Blennerhassett

Irongate’s Unsolicited Offer from 360 Capital

IAP received an unsolicited offer from 360 Capital worth A$1.6047 per security. Given 360 Capital strained relationship with the board, 360 Capital...

Arun George

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