Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Bloomberg is reporting <a href="https://www.smartkarma.com/entities/genting-singapore-ltd" target="_blank" data-smartkarma-citation="entities:439:1" rel="noopener">Genting Singapore (GENS SP)</a> has been attracting suitors, including <a href="https://www.smartkarma.com/entities/mgm-resorts-international" target="_blank" data-smartkarma-citation="entities:16227:1" rel="noopener">MGM Resorts International (MGM US)</a>.</li>
<li>With Macau all-but emulating a Shanghai-style lockdown, including the recent shuttering of all casinos, large global casino operators will be looking to diversify their revenue base. </li>
<li>But with Singapore potentially emerging as Asia's go-to gaming destination going forward, it's unlikely the Lim family will exit their Genting flagship.</li>
</ul>


Bloomberg is reporting Genting Singapore (GENS SP) has been attracting suitors, including MGM Resorts International (MGM US).
With Macau all-but emulating a Shanghai-style lockdown, including the recent shuttering of all casinos, large global casino operators will be looking to diversify their revenue base. 
But with Singapore potentially emerging as Asia's go-to gaming destination going forward, it's unlikely the Lim family will exit their Genting flagship.


Punters Take A Gamble on Genting Singapore

Bond market data and technology, BondEvalue

BondEvalue

Bond market data and technology

BondEvalue is a Singapore-based Fintech that specializes in bond market data and technology. The company's information services business offers bond market data on hard-currency corporate & sovereign bonds across Asia, Middle East, Europe and the Americas. The data, which includes bond prices, yields, news and analytics, is offered to end investors via interactive Mobile and Web Apps. Investors can sign up for a free trial of the service either via the company's website (https://bondevalue.com) or by downloading the BondEvalue Mobile App (http://onelink.to/wej7jq). BondEvalue is also developing an electronic bond exchange, BondbloX in Singapore that allows investors to trade bonds electronically in smaller sizes (US$1,000 or equivalent). For more information, visit https://www.bondblox.com/

Bond Market Data and Technology

Credit

MGM China reported an 85% jump in its 2021 revenues to HKD 9.4bn ($1.4bn). Its adjusted EBITDA stood at HKD 390mn ($50mn), compared to a negative adjusted EBITDA of HKD 1.4bn ($179mn) in 2020. MGM Macau saw revenue up by 85% to HKD 5.2bn ($666mn) and MGM COTAI’s revenues rose 84% to HKD 4.2bn ($538mn). The Group had total liquidity of ~HKD 13.2bn ($1.69bn), consisting of cash and cash equivalent and undrawn revolver/revolving debt (Term of the Day, explained below) . Jennifer Song, a Hong Kong-based analyst at Morningstar said, “ We think strong pent-up demand and China’s expanding prosperity will continue to support Macau gaming revenue’s recovery”.

MGM China Reports 85% Jump in 2021 Revenues

SPAC Deep Dive, subSPAC

subSPAC

SPAC Deep Dive

Each week we’ll identify and break down for you SPACs that are capturing market share and making an impact.

Equity Capital Markets

Sports Entertainment Acquisition / Equity Capital Markets

Sports Entertainment Acquisition (SEAH US)

<ul>
<li>The rapid legalization of online gaming across the United States has resulted in a severely fragmented industry</li>
<li>Super Group, which largely operates in Europe, is set to debut soon through a SPAC merger with Sports Entertainment Acquisition Corp (SEAH), at a valuation of $5.14 billion</li>
<li>For those unfamiliar, Super Group operates online sports betting and gaming under the Betway and Spin brands</li>
</ul>


The rapid legalization of online gaming across the United States has resulted in a severely fragmented industry
Super Group, which largely operates in Europe, is set to debut soon through a SPAC merger with Sports Entertainment Acquisition Corp (SEAH), at a valuation of $5.14 billion
For those unfamiliar, Super Group operates online sports betting and gaming under the Betway and Spin brands


Can Super Group take the Crown from DraftKings?

Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Casino Business Review LLC

Extensive experience in marketing and development in the Asian gaming market

Global Gaming and Casinos Industry

Equity Bottom-Up

MGM Resorts International / Equity Bottom-Up

<ul>
<li>Among US and Asian peers, MGM is set to benefit from simultaneous recovery cycles in all its segments including its rapid growth in online sports betting. We see a considerable upside beginning to build off a bullish trend this year to date.</li>
<li>Forward value of this diverse global gaming leader is lagging behind recovering casino revenues in the US and Asia.</li>
<li>MGM's $11b bid for its 50% sports betting partner, the UK giant Entain, may be revived now that a competitor's $22b bid has been withdrawn. This would materially expand the company's reach to 26 countries.</li>
</ul>


Among US and Asian peers, MGM is set to benefit from simultaneous recovery cycles in all its segments including its rapid growth in online sports betting. We see a considerable upside beginning to build off a bullish trend this year to date.
Forward value of this diverse global gaming leader is lagging behind recovering casino revenues in the US and Asia.
MGM's $11b bid for its 50% sports betting partner, the UK giant Entain, may be revived now that a competitor's $22b bid has been withdrawn. This would materially expand the company's reach to 26 countries.


MGM Resorts: A Momentum Play Rising from Macau, Las Vegas, US Regionals and Sports Betting Upsides.

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<a href="https://www.smartkarma.com/entities/entain-plc" target="_blank" data-smartkarma-citation="entities:23926:1" rel="noopener">Entain (ENT LN)</a> confirmed that it had received a proposal from <a href="https://www.smartkarma.com/entities/draftkings-inc" target="_blank" data-smartkarma-citation="entities:29248:1" rel="noopener">DraftKings Inc (DKNG US)</a>. On 22 September, the Board said that following an earlier approach at 2,500p/share (mix of DraftKings shares and cash) which was rejected, a further proposal was received on 19 September 2021. DraftKings Inc. revised the offer price to 2,800p/share (630p in cash and and the balance payable in new DraftKings Class A common shares).
The acquisition of Entain could be strategic for DraftKings, which is eyeing international expansion. The consideration represents a premium of 46.2% to Entain’s closing share price on 20 September 2021, 4.5x EV/NTM Sales, 19.2x EV/NTM EBITDA and 39.2x Fwd P/E (source: Capital IQ consensus).
PUSU deadline is 19 October.
There is some interloper risk. In case DraftKings presents a firm offer, MGM could potentially bid again for Entain. Nevertheless, MGM in the past has said that its joint-venture agreement with Entain gives it protection against another entity trying to acquire Entain without its approval.
<div>
Moreover, the gambling business is ideal private equity territory. Betting businesses are cash cows and the revenue flows can be (or should be) precisely predicted. The lower cost of capital of private equity firms and the financial discipline introduced are a key advantage in the industry.
</div>
BetMGM (Entain’s joint venture in the US with MGM Resorts) continues to perform strongly. H1 NGR of $357m. Number two operator for sports-betting and iGaming across the US with 22% market share, number one operator in iGaming, extending leadership with 30% market share. Total combined investment in BetMGM by joint venture partners expected to be $660m by the end of 2021.
Valuation of Entain. By using the median of comparables 11.9x EV/Fwd EBITDA, the implied valuation of Entain would be 1,628p/share. To value BetMGM, I expect total revenue of $3.6 bn by 2025. By applying a 3.0x EV/Fwd Revenue multiple, the valuation of the JV could reach $10.8 bn, of which $5.4 bn for Entain (equivalent to £3,933 mn, or 672p per share).
Adding the base case plus BetMGM, my longer term TP is 2,300p. The shares seem to be fairly valued at market close of 23 September, nevertheless two takeover attempts in nine months mean a lot of interest in Entain. I would therefore be LONG.

Entain (ENT LN) confirmed that it had received a proposal from DraftKings Inc (DKNG US). On 22 September, the Board said that following an earlier approach at 2,500p/share (mix of DraftKings shares and cash) which was rejected, a further proposal was received on 19 September 2021. DraftKings Inc. revised the offer price to 2,800p/share (630p in cash and and the balance payable in new DraftKings Class A common shares).
The acquisition of Entain could be strategic for DraftKings, which is eyeing international expansion. The consideration represents a premium of 46.2% to Entain’s closing share price on 20 September 2021, 4.5x EV/NTM Sales, 19.2x EV/NTM EBITDA and 39.2x Fwd P/E (source: Capital IQ consensus).
PUSU deadline is 19 October.
There is some interloper risk. In case DraftKings presents a firm offer, MGM could potentially bid again for Entain. Nevertheless, MGM in the past has said that its joint-venture agreement with Entain gives it protection against another entity trying to acquire Entain without its approval.

Moreover, the gambling business is ideal private equity territory. Betting businesses are cash cows and the revenue flows can be (or should be) precisely predicted. The lower cost of capital of private equity firms and the financial discipline introduced are a key advantage in the industry.

BetMGM (Entain’s joint venture in the US with MGM Resorts) continues to perform strongly. H1 NGR of $357m. Number two operator for sports-betting and iGaming across the US with 22% market share, number one operator in iGaming, extending leadership with 30% market share. Total combined investment in BetMGM by joint venture partners expected to be $660m by the end of 2021.
Valuation of Entain. By using the median of comparables 11.9x EV/Fwd EBITDA, the implied valuation of Entain would be 1,628p/share. To value BetMGM, I expect total revenue of $3.6 bn by 2025. By applying a 3.0x EV/Fwd Revenue multiple, the valuation of the JV could reach $10.8 bn, of which $5.4 bn for Entain (equivalent to £3,933 mn, or 672p per share).
Adding the base case plus BetMGM, my longer term TP is 2,300p. The shares seem to be fairly valued at market close of 23 September, nevertheless two takeover attempts in nine months mean a lot of interest in Entain. I would therefore be LONG.

DraftKings/Entain: Cash and Shares Approach

United States

MGM Resorts International operates gaming, hospitality and entertainment resorts.  The Company owns properties in Nevada, Mississippi and Michigan in the United States; and owns interests in properties in Nevada and Illinois in the United States, and Macau. MGM Resorts also offers hospitality management services for casino and non-casino properties around the world.

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

MGM Resorts International (MGM US)

Punters Take A Gamble on Genting Singapore

I'd be buying here. Not on account of a possible takeover; but because Singapore's travel/gaming trajectory has greater clarity than that of Macau.

David Blennerhassett

MGM China Reports 85% Jump in 2021 Revenues

MGM China reported an 85% jump in its 2021 revenues to HKD 9.4bn ($1.4bn). Its adjusted EBITDA stood at HKD 390mn ($50mn), compared to a negative...

BondEvalue

Can Super Group take the Crown from DraftKings?

Welcome to The Rundown! Each week we’ll identify and break down for you SPACs that are capturing market share and making an impact.Happy Sunday...

subSPAC

MGM Resorts: A Momentum Play Rising from Macau, Las Vegas, US Regionals and Sports Betting Upsides.

MGM, more diverse than most peers, is on the cusp of improving revenue cycles in current markets where the pandemic is showing signs of...

Howard J Klein

DraftKings/Entain: Cash and Shares Approach

The shares seem to be fairly valued at market close of 23 September, nevertheless two takeover attempts in nine months mean a lot of interest in...

Jesus Rodriguez Aguilar

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)