Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>In this insight, we take a look at the potential index changes for F100 and F250 in the run up to the September 2023 Rebalance.</li>
<li>I currently expect two changes for the F100 index and three changes for the F250 index.</li>
<li>As always, there are several names lurking just outside the borders and could be involved in index changes in September 2023 if there are sharp price changes.</li>
</ul>


In this insight, we take a look at the potential index changes for F100 and F250 in the run up to the September 2023 Rebalance.
I currently expect two changes for the F100 index and three changes for the F250 index.
As always, there are several names lurking just outside the borders and could be involved in index changes in September 2023 if there are sharp price changes.


Quiddity Leaderboard F100/​​250 Sep 23: Two F100 Change and Three F250 Changes Likely

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/network-international-holdings-plc" target="_blank" data-smartkarma-citation="entities:28918:1" rel="noopener">Network International Holdings (NETW LN)</a> and a <a href="https://www.smartkarma.com/entities/brookfield-asset-management-lt" target="_blank" data-smartkarma-citation="entities:23741:1" rel="noopener">Brookfield Asset Management Lt (BAM US)</a>-led consortium agreed on a 400p/share cash offer (64% premium, 12.9x EV/Fwd EBITDA) to be implemented via a scheme of arrangement. </li>
<li>Network is no longer grossly undervalued. The 9 June closing share price of 383p represents an 89% chance of completing the deal (based on the 245p close price). </li>
<li>Synergies have not been quantified, but may explain why Brookfield's consortium has been able to trump CVC. Spread is 4.25%/8.92% (gross/annualised, assuming settlement by 15 December). Long.</li>
</ul>



Network International Holdings (NETW LN) and a Brookfield Asset Management Lt (BAM US)-led consortium agreed on a 400p/share cash offer (64% premium, 12.9x EV/Fwd EBITDA) to be implemented via a scheme of arrangement. 
Network is no longer grossly undervalued. The 9 June closing share price of 383p represents an 89% chance of completing the deal (based on the 245p close price). 
Synergies have not been quantified, but may explain why Brookfield's consortium has been able to trump CVC. Spread is 4.25%/8.92% (gross/annualised, assuming settlement by 15 December). Long.


<ul>
<li>Middle East and Africa leading payments processing firm Network International is in play. On 21 April, Brookfield submitted a 400p competing proposal, vs. CVC/Francisco's earlier 387p. Network was trading cheaply.</li>
<li>Exposure to underserved MEA markets should support sustainable longer-term growth. My fair value estimate is 431p. The shares trade 0.75% below Brookfield's proposal, the market awaits a counteroffer from CVC/Francisco.</li>
<li>The fact that Brookfield has raised just 3.4% above CVC/Francisco seems to signal that Brookfield will be cautious in case of an "auction". Long.
</li>
</ul>


Middle East and Africa leading payments processing firm Network International is in play. On 21 April, Brookfield submitted a 400p competing proposal, vs. CVC/Francisco's earlier 387p. Network was trading cheaply.
Exposure to underserved MEA markets should support sustainable longer-term growth. My fair value estimate is 431p. The shares trade 0.75% below Brookfield's proposal, the market awaits a counteroffer from CVC/Francisco.
The fact that Brookfield has raised just 3.4% above CVC/Francisco seems to signal that Brookfield will be cautious in case of an "auction". Long.



Patryk Basiewicz

PGB Research

Forensic Accounting

Network International / Forensic Accounting

<a href="https://www.smartkarma.com/entities/network-international-holdings-plc" target="_blank" rel="noopener">Network International Holdings (NETW LN)'</a>s share price has fallen by half this year. Though much of this decline likely occurred due to COVID-related hit in its brick-and-mortar retail/tourist business, it is quite likely that <a href="https://www.smartkarma.com/entities/wirecard-ag" target="_blank" data-smartkarma-citation="entities:21743:1" rel="noopener">Wirecard AG (WDI GR)</a> crisis had a part to play. Seemingly, there are several parallels. There are already some Twitter haters out there. 
Below I analyse <a href="https://www.smartkarma.com/entities/network-international-holdings-plc" target="_blank" data-smartkarma-citation="entities:28918:1" rel="noopener">Network International Holdings (NETW LN)</a> cash flow dynamics using the information they provided in public disclosure. I do that because Wirecard's poor cash generation was the canary in the coal mine, that many (myself included) overlooked and downplayed. I show how different business models between NETW and Wirecard lead to different adjustments of reported cash flow figures. Note that, just like Wirecard, NETW does not disclose cash flow in a way that fully reflects economic reality.

Network International Holdings (NETW LN)'s share price has fallen by half this year. Though much of this decline likely occurred due to COVID-related hit in its brick-and-mortar retail/tourist business, it is quite likely that Wirecard AG (WDI GR) crisis had a part to play. Seemingly, there are several parallels. There are already some Twitter haters out there. 
Below I analyse Network International Holdings (NETW LN) cash flow dynamics using the information they provided in public disclosure. I do that because Wirecard's poor cash generation was the canary in the coal mine, that many (myself included) overlooked and downplayed. I show how different business models between NETW and Wirecard lead to different adjustments of reported cash flow figures. Note that, just like Wirecard, NETW does not disclose cash flow in a way that fully reflects economic reality. 

Network International (NETW LN): It Is Not Wirecard Just Yet. Cashflow Comparison.

United Arab Emirates

Network International is a leading digital commerce enabler and payment solutions provider operating across the Middle East and Africa. The company offers technology-enabled payment solutions to merchants and financial institutions, including direct acquiring services, acquirer processing, and issuer processing. Network International was founded in 1994 and is headquartered in Dubai, United Arab Emirates.

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

Network International (NETW LN)

Quiddity Leaderboard F100/250 Sep 23: Two F100 Change and Three F250 Changes Likely

Newly-listed cross-border payment services provider Cab Payments Holdings Plc (CABP LN) could be added to the F250 index in September 2023 unless...

Janaghan Jeyakumar, CFA

Brookfield to Buy Network International

On 9 June, just before the expiration of the PUSU deadline, Brookfield and Network agreed on a 400p/share cash offer to be effected via a scheme of...

Jesus Rodriguez Aguilar

Competing Proposals

On 21 April, Network International confirmed that it had received a highly preliminary, non-binding proposal regarding a possible cash offer of...

Jesus Rodriguez Aguilar