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/perpetual-ltd" target="_blank" data-smartkarma-citation="entities:599:1" rel="noopener">Perpetual Ltd (PPT AU)</a> confirmed today that it is currently in “<em>high-level, preliminary, confidential discussions with Pendal in relation to a potential acquisition.</em>”</li>
<li>Since rejecting Perpetual’s offer, <a href="https://www.smartkarma.com/entities/pendal-group-ltd" target="_blank" data-smartkarma-citation="entities:15795:1" rel="noopener">Pendal Group (PDL AU)</a>’s shares have underperformed most of its peers largely due to poor FUM performance. </li>
<li>Despite today’s pop, Pendal trades at a discount to historical and peer multiples. Perpetual’s renewed interest points to its underlying value. </li>
</ul>



Perpetual Ltd (PPT AU) confirmed today that it is currently in “high-level, preliminary, confidential discussions with Pendal in relation to a potential acquisition.”
Since rejecting Perpetual’s offer, Pendal Group (PDL AU)’s shares have underperformed most of its peers largely due to poor FUM performance. 
Despite today’s pop, Pendal trades at a discount to historical and peer multiples. Perpetual’s renewed interest points to its underlying value. 


<ul>
<li>The <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a> Board will not recommend Dye&amp;Durham/DND’s revised lower offer of A$4.57 per share due to shareholder feedback, the underlying value and alternative options.</li>
<li>The slightly above guidance is designed to show that Link's contribution to DND's build a billion objective remains on track and there is little chance of triggering the MAC clause.</li>
<li>DND needs to secure a deal this week to use its attractive deal financing, according to AFR. This could be the cue for DND to give a little more.</li>
</ul>


The Link Administration (LNK AU) Board will not recommend Dye&amp;Durham/DND’s revised lower offer of A$4.57 per share due to shareholder feedback, the underlying value and alternative options.
The slightly above guidance is designed to show that Link's contribution to DND's build a billion objective remains on track and there is little chance of triggering the MAC clause.
DND needs to secure a deal this week to use its attractive deal financing, according to AFR. This could be the cue for DND to give a little more.


<ul>
<li>Dye &amp; Durham/DND has bumped its lowered offer by 6.3% to A$4.57 per share. The <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a> Board has postponed the 13 July scheme meeting to facilitate discussions. </li>
<li>DND's "sweetened" A$4.57 base consideration plus the potential BCM consideration of A$0.13 totals exactly A$4.70 per share. This suggests that Board is aiming for a A$4.70 base consideration.  </li>
<li>DND is clearly interested in Link. Bridging the 2.8% price gap between the buyer’s and seller’s price aspirations is not onerous and suggests a deal can get done.</li>
</ul>


Dye &amp; Durham/DND has bumped its lowered offer by 6.3% to A$4.57 per share. The Link Administration (LNK AU) Board has postponed the 13 July scheme meeting to facilitate discussions. 
DND's "sweetened" A$4.57 base consideration plus the potential BCM consideration of A$0.13 totals exactly A$4.70 per share. This suggests that Board is aiming for a A$4.70 base consideration.  
DND is clearly interested in Link. Bridging the 2.8% price gap between the buyer’s and seller’s price aspirations is not onerous and suggests a deal can get done.


Link Narrows the Price Gap as DND Bumps Its Lowered Offer

<ul>
<li>The <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a> Board will not recommend Dye &amp; Durham/DND’s proposed lower offer of A$4.30 per share due to shareholder feedback, the underlying value and alternative options.</li>
<li>The statement suggests that the Board is willing to consider a lower but improved offer. Acquiring Link at a lower valuation through its attractive financing package continues to motivate DND.</li>
<li>A price of A$4.70, which is the middle of the buyer’s and seller’s valuations will get a deal done. Downside risk is low as shares trade close to low-end valuation.   </li>
</ul>


The Link Administration (LNK AU) Board will not recommend Dye &amp; Durham/DND’s proposed lower offer of A$4.30 per share due to shareholder feedback, the underlying value and alternative options.
The statement suggests that the Board is willing to consider a lower but improved offer. Acquiring Link at a lower valuation through its attractive financing package continues to motivate DND.
A price of A$4.70, which is the middle of the buyer’s and seller’s valuations will get a deal done. Downside risk is low as shares trade close to low-end valuation.   


Link’s Statement Hints at a Willingness to Meet in the Middle

<ul>
<li>Dye &amp; Durham/DND has proposed to lower its offer from A$5.50 to A$4.30 per share. The <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a> Board will provide shareholders with an update next week.</li>
<li>DND's justification for a lower offer based on the potential undertaking to the ACCC and the current state of the financial markets smacks of opportunism.    </li>
<li>The proposed lower bid offers no premium to our valuation range or the undisturbed price. The Board should reject the lower offer and instead reignite interest from past suitors. </li>
</ul>


Dye &amp; Durham/DND has proposed to lower its offer from A$5.50 to A$4.30 per share. The Link Administration (LNK AU) Board will provide shareholders with an update next week.
DND's justification for a lower offer based on the potential undertaking to the ACCC and the current state of the financial markets smacks of opportunism.    
The proposed lower bid offers no premium to our valuation range or the undisturbed price. The Board should reject the lower offer and instead reignite interest from past suitors. 


Link’s Lower Offer of A$4.30 from DND Fails to Excite

Australia

Perpetual Limited is a financial services company that has two primary activities, wealth management services and corporate trust services. The Company provides funds management, responsible entity services, trustee services, executor services, financial planning, investment administration, superannuation, custody and registry services.

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Perpetual Ltd (PPT AU)

Perpetual Mulls Another Bid for Pendal

Despite today’s pop, Pendal trades at a discount to historical and peer multiples. Perpetual’s renewed interest points to its underlying value.

Arun George

Link’s Board Shows Its Hand

Link's Board is holding out for a little more and the guidance supports its case. DND is running out of time to use its deal financing. A marginal...

Arun George

Link Narrows the Price Gap as DND Bumps Its Lowered Offer

A A$4.70 base consideration is likely the magic number for the buyer and seller to shake hands. Bridging the 2.8% price gap is not onerous and...

Arun George

Link’s Statement Hints at a Willingness to Meet in the Middle

A price of A$4.70, which is the middle of the buyer’s and seller’s valuations will likely get a deal done. The downside risk is low as shares trade...

Arun George

Link’s Lower Offer of A$4.30 from DND Fails to Excite

DND's lower offer of A$4.30 smacks of opportunism. The Board should reject the lower offer and instead go it alone and reignite interest from past...

Arun George

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