European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

The recent reforms incorporate "loyalty shares" as an option, which in practice come to transform the 'one share one vote' rule that prevailed in listed companies to protect equal voting rights of shareholders. The instrument equates the Spanish rules with those of other European Union countries, such as Germany, Italy, France or the Netherlands, among others, and aims to reward long-term investors, also protecting companies against short-term investors (opportunistic funds).
The Government toughens the takeover law before the arrival of 'loyal investors' on fear that hard core shareholders will take control of Spanish companies with the new double voting system.
According to the change in the regulation, an investor who exceeds 30% of the vote of a company listed due to the double voting rights of the loyalty shares, will have three months to decide whether to launch a takeover bid, reduce participation or waive its new political rights.
The Ministry of Finance discreetly introduces the change in the new Securities Market Law.
In Spain, the companies that establish the double voting system will be less prone to receiving a takeover offer. If it is already difficult to carry out an offer now without the support of the hard core nucleus on shareholders (for instance, MásMóvil has had to agree with those of <a href="https://www.smartkarma.com/entities/euskaltel-sa" target="_blank" data-smartkarma-citation="entities:21263:1" rel="noopener">Euskaltel SA (EKT SM)</a> ), it will be next to impossible under the new framework.

The recent reforms incorporate "loyalty shares" as an option, which in practice come to transform the 'one share one vote' rule that prevailed in listed companies to protect equal voting rights of shareholders. The instrument equates the Spanish rules with those of other European Union countries, such as Germany, Italy, France or the Netherlands, among others, and aims to reward long-term investors, also protecting companies against short-term investors (opportunistic funds).
The Government toughens the takeover law before the arrival of 'loyal investors' on fear that hard core shareholders will take control of Spanish companies with the new double voting system.
According to the change in the regulation, an investor who exceeds 30% of the vote of a company listed due to the double voting rights of the loyalty shares, will have three months to decide whether to launch a takeover bid, reduce participation or waive its new political rights.
The Ministry of Finance discreetly introduces the change in the new Securities Market Law.
In Spain, the companies that establish the double voting system will be less prone to receiving a takeover offer. If it is already difficult to carry out an offer now without the support of the hard core nucleus on shareholders (for instance, MásMóvil has had to agree with those of Euskaltel SA (EKT SM) ), it will be next to impossible under the new framework.

Loyalty Shares in Spain: Double-Voting Rights Could Hinder Takeovers

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Today, the Victorian government rejected a A$250mn 300-metre floating gas terminal proposal at Mornington Peninsula. Planning Minister Richard Wynne said the Crib Point terminal would have had "<a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02358799-2A1289920?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">unacceptable environmental effects</a>" in Western Port.
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/198/047/original/image_90576892521617071507869.png?1617071510" class="editor-image img-responsive" data-smartkarma-image-id="198047"></figure>
<div class="content-caption">Source: ABC. A protester in a wetsuit taking his concerns about the terminal to the Victorian Parliament in early March</div>
<a href="https://www.smartkarma.com/entities/agl-energy-ltd" target="_blank" data-smartkarma-citation="entities:554:1" rel="noopener">AGL Energy Ltd (AGL AU)</a>, which has already outlayed millions of dollars on the Crib Point project, <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02358799-2A1289920?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it was “considering its position” on the minister’s decision.
Concurrent with this rejection, AGL <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02358644-2A1289840?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it was splitting into two separate companies: a thermal coal generation business and a separate zero-carbon energy retailer. 
The split follows a raft of new initiatives/developments recently including an <a href="https://www.agl.com.au/about-agl/media-centre/asx-and-media-releases/2021/january/agl-announces-suppliers-for-grid-scale-battery-plans" target="_blank" rel="noopener">agreement</a> with suppliers for grid-scale battery plans, the <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02355442-2A1288076?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">renewal</a> of the Portland smelter contract, and the <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02353382-2A1286980?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">participation</a> in PowAR's acquisition of <a href="https://www.smartkarma.com/entities/tilt-renewables-ltd" target="_blank" data-smartkarma-citation="entities:24371:1" rel="noopener">Tilt Renewables Ltd (TLT NZ)</a> (<a href="https://skr.ma/i5ugg" target="_blank" rel="noopener">Tilt Renewables: Mercury/PowAr's Big Blow</a>).
Speculation of a demerger has been running hot since Australia's oldest energy unity grappled with softening power prices, and a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02340133-2A1279818?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$2.29bn</a> loss in the 1H21, exacerbated by A$2.7bn in <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02337704-2A1278422?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">impairment charges</a>. 
The share price reaction to the split was largely muted. 
As always, more below the fold.

Today, the Victorian government rejected a A$250mn 300-metre floating gas terminal proposal at Mornington Peninsula. Planning Minister Richard Wynne said the Crib Point terminal would have had "unacceptable environmental effects" in Western Port.

Source: ABC. A protester in a wetsuit taking his concerns about the terminal to the Victorian Parliament in early March
AGL Energy Ltd (AGL AU), which has already outlayed millions of dollars on the Crib Point project, announced it was “considering its position” on the minister’s decision.
Concurrent with this rejection, AGL announced it was splitting into two separate companies: a thermal coal generation business and a separate zero-carbon energy retailer. 
The split follows a raft of new initiatives/developments recently including an agreement with suppliers for grid-scale battery plans, the renewal of the Portland smelter contract, and the participation in PowAR's acquisition of Tilt Renewables Ltd (TLT NZ) (Tilt Renewables: Mercury/PowAr's Big Blow).
Speculation of a demerger has been running hot since Australia's oldest energy unity grappled with softening power prices, and a A$2.29bn loss in the 1H21, exacerbated by A$2.7bn in impairment charges. 
The share price reaction to the split was largely muted. 
As always, more below the fold.

AGL Energy (AGL AU): Carbon/Zero-Carbon Split

The Spanish Government ends, de facto, the liberalizing regime that ruled over the Spanish economy since 1999, because it considers necessary to limit the possible acquisitions of strategic Spanish companies by ANY foreign investor after the COVID-19 hit.
The Spanish Government enhances anti-takeover rules:
<ul>
<li>Temporarily until June 30, 2021, the Government has suspended the liberalization regime for foreign direct investments made by residents and other countries of the EU and the EFTA. Any attempt to acquire over 10% of a Spanish listed company by any EU or EFTA corporate or investor must be approved by the Cabinet.
</li>
<li>In the case of investments of non-EU origin, the suspension of the liberalization regime is maintained indefinitely, until a new legislative change is introduced.</li>
<li>This protects the Ibex 35 companies from takeover raids by European rivals.</li>
</ul>
This rule could make it possible to avoid hypothetical bids of <a href="https://www.smartkarma.com/entities/total-sa" target="_blank" data-smartkarma-citation="entities:812:1" rel="noopener">Total Sa (FP FP)</a> or <a href="https://www.smartkarma.com/entities/eni-spa" target="_blank" data-smartkarma-citation="entities:21185:1" rel="noopener">Eni SpA (ENI IM)</a> for <a href="https://www.smartkarma.com/entities/repsol-sa" target="_blank" data-smartkarma-citation="entities:21292:1" rel="noopener">Repsol SA (REP SM)</a> or <a href="https://www.smartkarma.com/entities/deutsche-telekom-ag" target="_blank" data-smartkarma-citation="entities:21611:1" rel="noopener">Deutsche Telekom Ag (DTE GR)</a> for <a href="https://www.smartkarma.com/entities/telefonica-sa" target="_blank" data-smartkarma-citation="entities:21299:1" rel="noopener">Telefonica SA (TEF SM)</a> , which have been the subject of rumours in the market.
<ul>
<li>Analysts see Repsol and Telefónica as the most vulnerable members of the IBEX 35 index, due to their current low valuation. Repsol trades at 4.9x EV/Forward EBITDA vs. the median of comparable companies, 6.3x. Telefonica is trading at 5.2x EV/Forward EBITA vs. the median of comparable companies, 6.5x.</li>
</ul>
Some transactions that are underway could be affected. For example, the French group Vinci agreed to buy the industrial services division of ACS, for over €5 bn (for reference: <a href="https://www.smartkarma.com/insights/acs-unlocking-value-via-disposals" target="_blank" data-smartkarma-citation="insights:44311" rel="noopener">ACS: Unlocking Value Via Disposals</a>).

The Spanish Government ends, de facto, the liberalizing regime that ruled over the Spanish economy since 1999, because it considers necessary to limit the possible acquisitions of strategic Spanish companies by ANY foreign investor after the COVID-19 hit.
The Spanish Government enhances anti-takeover rules:

Temporarily until June 30, 2021, the Government has suspended the liberalization regime for foreign direct investments made by residents and other countries of the EU and the EFTA. Any attempt to acquire over 10% of a Spanish listed company by any EU or EFTA corporate or investor must be approved by the Cabinet.

In the case of investments of non-EU origin, the suspension of the liberalization regime is maintained indefinitely, until a new legislative change is introduced.
This protects the Ibex 35 companies from takeover raids by European rivals.

This rule could make it possible to avoid hypothetical bids of Total Sa (FP FP) or Eni SpA (ENI IM) for Repsol SA (REP SM) or Deutsche Telekom Ag (DTE GR) for Telefonica SA (TEF SM) , which have been the subject of rumours in the market.

Analysts see Repsol and Telefónica as the most vulnerable members of the IBEX 35 index, due to their current low valuation. Repsol trades at 4.9x EV/Forward EBITDA vs. the median of comparable companies, 6.3x. Telefonica is trading at 5.2x EV/Forward EBITA vs. the median of comparable companies, 6.5x.

Some transactions that are underway could be affected. For example, the French group Vinci agreed to buy the industrial services division of ACS, for over €5 bn (for reference: ACS: Unlocking Value Via Disposals).

Enhanced Limits to Investments in Spanish Companies

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2020-04/Capture.PNG" class="editor-image img-responsive"></figure>
<div class="content-caption">ganse</div>

For lubricant specialist Jacky Tan, intuition is indispensable when it comes to making decisions in a complex and rapidly changing environment. In particular, "Listen to your heart" and "Go with your gut" are his key axioms, as seeded by his father's counsel more than four decades ago. "I asked my dad for advice when I first started working, and he told me '要小心', which means 'be cautious," recalled the Chief Executive Officer of SGX-listed lubricant manufacturer and trader United Global Ltd. "In my younger years, I took it literally, always focusing on the facts, figures, and details. It was only much later that I realised what he was really referring to - I had overlooked the softer side of business transactions, which are human connections between people." This is especially crucial for deals and alliances. "You may be looking at absolutely fantastic numbers and huge profits at the beginning, but if somewhere down the road, you can't work with your chosen associate or partner, and the joint venture collapses, you end up with nothing," he added. The University of Canberra graduate with a Bachelor of Applied Science in Building spent eight years with two Indonesian mining and quarrying companies, before moving to Singapore when racially motivated riots erupted in the country in May 1998. Given his background in the mining industry - which consumed container loads of oils, greases and fluids for heavy equipment every month - Tan decided to enter the lubricants business. Together with his wife and father-in-law, Tan founded United Oil Company in 1999. He remembers the journey as one marked by a lot of sweat, some blood, and occasional tears. "We started as a small player in the market, and very few people knew who we were. For the business to break even, we needed to manufacture and sell at least 50 container loads of lubricant oils every month." This meant reaching out to potential customers through a dizzying volume of cold calls. "We were on the phone constantly, persuading potential clients, negotiating prices, dealing with rejections - that was our lowest point." Slowly, through sheer determination and hard work, things turned around. "Once customers realised that we strive to give them the best value and quality in terms of our products, and always delivering what we promised, the business took off." Building Bonds Tan focused on laying the foundation for United Oil's future - by forging a bond with clients through honesty and openness. "We created a reputation for ourselves as a reliable supplier, one who isn't greedy, but fair in terms of pricing," he noted. "And we are where we are today because of the support from our customers." Tan's make-or-break attitude also played a crucial role. "If we think that something is worth doing, then we die-die must try our best to make it work," he said with a grin. Aside from turning the small family-run outfit into a thriving business, Tan also dreamed of listing the company and diversifying its focus beyond lubricants. Thus, United Global Ltd - with United Oil Company, United Innovations Company and United Renewables Company as subsidiaries - was born. As a fitting culmination to decades of hard work, United Global was listed on Singapore Exchange's Catalist board in July 2016. The Group provides a wide range of lubricant products under in-house brands, such as "United Oil", "U Star Lube", "Bell1", "HydroPure" and "Ichiro", as well as lubricants for third-party brands. It is also involved in the trading of base oils, additives and lubricants. With an extensive network of distributors spanning more than 30 countries, United Global supplies lubricant products to the automotive, industrial and marine sectors. An ISO 9001-certified company, the Group has a blending capacity of 60,000 metric tonnes (MT) per annum in Singapore, and 80,000 MT in Indonesia. Meanwhile, United Global has put in place a three-pronged growth strategy. It plans to expand its existing lubricants business organically in the region, focusing on in-house brands and through partnerships that offer good synergies. It will continue to establish strategic alliances with its distributors, boosting its footprint in key overseas markets by tapping on their expertise and local knowledge, Tan said. &nbsp; The Group is also actively seeking opportunities to diversify revenue streams. They include its 2017 venture with Japan's M-TechX Group to make oil-absorbing, nano-fibre materials for a range of industrial and commercial applications. Other collaborations involve the marketing and distribution of the Group's lubricant products in Australia, China and Myanmar. Expanding Footprint Last September, Madrid-listed oil major Repsol acquired a 40% stake in Tan's United Oil Company subsidiary for up to US$46.5 million. By leveraging Repsol's international brand presence to boost production and distribution, United Global is well-positioned to tap new growth opportunities, he noted. "Repsol approached us in 2018 because as a listed company, we had strong corporate governance and a high level of transparency. Secondly, we had a good footprint in Indonesia, which was in line with Repsol's goal to expand in that market," he added. Indonesia, which accounted for nearly 40% of group revenue in 2018, will remain the Group's prime growth market. "Our ambition is to be among the top five lubricant suppliers in the country. Indonesia is expected to see some of the strongest demand for lubricants over the next decade as the government continues to roll out infrastructure projects." Apart from Southeast Asia's largest economy, two other markets - Vietnam and Malaysia - are also expected to enjoy exponential growth. &nbsp; "Our vision is to build a sustainable business, for the common good," Tan said. "Other opportunities out there include renewables and innovation, particularly in the area of new technologies." The 55-year-old has another personal goal - to continue growing United Global's market capitalisation. "When we first listed in 2016, my aim was to double our market cap in three years, but everyone laughed at me. In the end, I proved them wrong," Tan grinned. Today, United Global has a market value of more than S$140 million, compared with S$70 million when it listed in 2016. "My target - or rather my dream - is to double our market cap every three years, so that by the end of my 10-year tenure as CEO, we can see a 10-fold increase." Gung-Ho Optimism Meanwhile, challenges abound, not the least of which is the COVID-19 pandemic. &nbsp;"What keeps me awake at night? This is one," Tan admitted wryly. "Our supply chain has been impacted - we haven't been able to deliver our fuel products to China over the last few weeks, and are seeing very slow sales in the country, as well as Taiwan and Hong Kong," he added. "Although sales volumes have fallen by about 10% to 15%, orders are still trickling in. We are monitoring the situation closely. Given our geographical footprint in Asia Pacific, I reckon our risks are fairly well-spread out." At the end of day, when faced with circumstances beyond one's control, "you should plan what you can, and do what you can," he added. "There will be opportunities that pop up, even in tough market conditions, such as acquiring companies with strong fundamentals at good prices, or sealing synergistic partnerships." That "can-do" and "get-going" attitude is what characterises the father of three boys, aged 19 to 27. "I want to do the best that I can, as long as I am physically able. I push my limits to see how far I can go," he said with a smile. "The satisfaction I get from building a business from scratch, achieving my goals along the way, as well as helping my staff and customers - no words can really describe that experience," he added. A self-taught calligrapher who puts brush to paper whenever he needs to de-stress, Tan places a premium on doing good and giving back to society. "I always tell my kids, 'Never be complacent'," he said. "I hope each one of them will be a much better man than me - displaying my strengths and learning from my weaknesses." United Global Ltd Listed on SGX's Catalist board, United Global is an established, independent lubricant manufacturer with a wide range of high quality, well-engineered products under its in-house brand "United Oil", as well as a host of third-party brands. It is also engaged in the trading of base oils, additives and lubricants. Through its United Oil Company joint venture with Madrid-listed oil major Repsol, the Group manufactures a wide range of lubricants and specialty fluids for the automotive, industrial and marine industries, which are distributed throughout its extensive network covering more than 30 countries. An ISO 9001-certified company, the Group has a blending capacity of 60,000 MT per annum in Singapore, and 80,000 MT in Indonesia. The company website is: <a href="http://edm.sgx.com/a/hBejoGmB86%24MfB91mFsAAAAAAAY/link7" target="_blank" rel="noopener">www.unitedgloballimited.com/</a>. Click&nbsp;<a href="http://edm.sgx.com/a/hBejoGmB86%24MfB91mFsAAAAAAAY/link8" target="_blank" rel="noopener">here</a>&nbsp;for the company's StockFacts page. For the three months ended 31 December 2019 financial results, click&nbsp;<a href="http://edm.sgx.com/a/hBejoGmB86%24MfB91mFsAAAAAAAY/link9" target="_blank" rel="noopener">here</a>. For fourth quarter ended 31 Dec 2019 financial results, click&nbsp;<a href="http://edm.sgx.com/a/hBejoGmB86%24MfB91mFsAAAAAAAY/link10" target="_blank" rel="noopener">here</a>. &nbsp;
<table class="table table-striped">
<tbody></tbody>
</table>


ganse

For lubricant specialist Jacky Tan, intuition is indispensable when it comes to making decisions in a complex and rapidly changing environment.  In particular, "Listen to your heart" and "Go with your gut" are his key axioms, as seeded by his father's counsel more than four decades ago.  "I asked my dad for advice when I first started working, and he told me '要小心', which means 'be cautious," recalled the Chief Executive Officer of SGX-listed lubricant manufacturer and trader United Global Ltd.  "In my younger years, I took it literally, always focusing on the facts, figures, and details. It was only much later that I realised what he was really referring to - I had overlooked the softer side of business transactions, which are human connections between people."  This is especially crucial for deals and alliances. "You may be looking at absolutely fantastic numbers and huge profits at the beginning, but if somewhere down the road, you can't work with your chosen associate or partner, and the joint venture collapses, you end up with nothing," he added.  The University of Canberra graduate with a Bachelor of Applied Science in Building spent eight years with two Indonesian mining and quarrying companies, before moving to Singapore when racially motivated riots erupted in the country in May 1998.  Given his background in the mining industry - which consumed container loads of oils, greases and fluids for heavy equipment every month - Tan decided to enter the lubricants business. Together with his wife and father-in-law, Tan founded United Oil Company in 1999.  He remembers the journey as one marked by a lot of sweat, some blood, and occasional tears. "We started as a small player in the market, and very few people knew who we were. For the business to break even, we needed to manufacture and sell at least 50 container loads of lubricant oils every month."  This meant reaching out to potential customers through a dizzying volume of cold calls. "We were on the phone constantly, persuading potential clients, negotiating prices, dealing with rejections - that was our lowest point."  Slowly, through sheer determination and hard work, things turned around. "Once customers realised that we strive to give them the best value and quality in terms of our products, and always delivering what we promised, the business took off."  Building Bonds  Tan focused on laying the foundation for United Oil's future - by forging a bond with clients through honesty and openness. "We created a reputation for ourselves as a reliable supplier, one who isn't greedy, but fair in terms of pricing," he noted. "And we are where we are today because of the support from our customers."  Tan's make-or-break attitude also played a crucial role. "If we think that something is worth doing, then we die-die must try our best to make it work," he said with a grin.  Aside from turning the small family-run outfit into a thriving business, Tan also dreamed of listing the company and diversifying its focus beyond lubricants. Thus, United Global Ltd - with United Oil Company, United Innovations Company and United Renewables Company as subsidiaries - was born.  As a fitting culmination to decades of hard work, United Global was listed on Singapore Exchange's Catalist board in July 2016.  The Group provides a wide range of lubricant products under in-house brands, such as "United Oil", "U Star Lube", "Bell1", "HydroPure" and "Ichiro", as well as lubricants for third-party brands. It is also involved in the trading of base oils, additives and lubricants. With an extensive network of distributors spanning more than 30 countries, United Global supplies lubricant products to the automotive, industrial and marine sectors.  An ISO 9001-certified company, the Group has a blending capacity of 60,000 metric tonnes (MT) per annum in Singapore, and 80,000 MT in Indonesia.  Meanwhile, United Global has put in place a three-pronged growth strategy. It plans to expand its existing lubricants business organically in the region, focusing on in-house brands and through partnerships that offer good synergies. It will continue to establish strategic alliances with its distributors, boosting its footprint in key overseas markets by tapping on their expertise and local knowledge, Tan said. &nbsp;  The Group is also actively seeking opportunities to diversify revenue streams. They include its 2017 venture with Japan's M-TechX Group to make oil-absorbing, nano-fibre materials for a range of industrial and commercial applications. Other collaborations involve the marketing and distribution of the Group's lubricant products in Australia, China and Myanmar.  Expanding Footprint  Last September, Madrid-listed oil major Repsol acquired a 40% stake in Tan's United Oil Company subsidiary for up to US$46.5 million. By leveraging Repsol's international brand presence to boost production and distribution, United Global is well-positioned to tap new growth opportunities, he noted.  "Repsol approached us in 2018 because as a listed company, we had strong corporate governance and a high level of transparency. Secondly, we had a good footprint in Indonesia, which was in line with Repsol's goal to expand in that market," he added.  Indonesia, which accounted for nearly 40% of group revenue in 2018, will remain the Group's prime growth market. "Our ambition is to be among the top five lubricant suppliers in the country. Indonesia is expected to see some of the strongest demand for lubricants over the next decade as the government continues to roll out infrastructure projects."  Apart from Southeast Asia's largest economy, two other markets - Vietnam and Malaysia - are also expected to enjoy exponential growth. &nbsp;  "Our vision is to build a sustainable business, for the common good," Tan said. "Other opportunities out there include renewables and innovation, particularly in the area of new technologies."  The 55-year-old has another personal goal - to continue growing United Global's market capitalisation.  "When we first listed in 2016, my aim was to double our market cap in three years, but everyone laughed at me. In the end, I proved them wrong," Tan grinned.  Today, United Global has a market value of more than S$140 million, compared with S$70 million when it listed in 2016.  "My target - or rather my dream - is to double our market cap every three years, so that by the end of my 10-year tenure as CEO, we can see a 10-fold increase."  Gung-Ho Optimism  Meanwhile, challenges abound, not the least of which is the COVID-19 pandemic. &nbsp;"What keeps me awake at night? This is one," Tan admitted wryly.  "Our supply chain has been impacted - we haven't been able to deliver our fuel products to China over the last few weeks, and are seeing very slow sales in the country, as well as Taiwan and Hong Kong," he added.  "Although sales volumes have fallen by about 10% to 15%, orders are still trickling in. We are monitoring the situation closely. Given our geographical footprint in Asia Pacific, I reckon our risks are fairly well-spread out."  At the end of day, when faced with circumstances beyond one's control, "you should plan what you can, and do what you can," he added.  "There will be opportunities that pop up, even in tough market conditions, such as acquiring companies with strong fundamentals at good prices, or sealing synergistic partnerships."  That "can-do" and "get-going" attitude is what characterises the father of three boys, aged 19 to 27. "I want to do the best that I can, as long as I am physically able. I push my limits to see how far I can go," he said with a smile.  "The satisfaction I get from building a business from scratch, achieving my goals along the way, as well as helping my staff and customers - no words can really describe that experience," he added.  A self-taught calligrapher who puts brush to paper whenever he needs to de-stress, Tan places a premium on doing good and giving back to society.  "I always tell my kids, 'Never be complacent'," he said.  "I hope each one of them will be a much better man than me - displaying my strengths and learning from my weaknesses."  United Global Ltd  Listed on SGX's Catalist board, United Global is an established, independent lubricant manufacturer with a wide range of high quality, well-engineered products under its in-house brand "United Oil", as well as a host of third-party brands. It is also engaged in the trading of base oils, additives and lubricants. Through its United Oil Company joint venture with Madrid-listed oil major Repsol, the Group manufactures a wide range of lubricants and specialty fluids for the automotive, industrial and marine industries, which are distributed throughout its extensive network covering more than 30 countries. An ISO 9001-certified company, the Group has a blending capacity of 60,000 MT per annum in Singapore, and 80,000 MT in Indonesia.  The company website is: www.unitedgloballimited.com/.  Click&nbsp;here&nbsp;for the company's StockFacts page.  For the three months ended 31 December 2019 financial results, click&nbsp;here.  For fourth quarter ended 31 Dec 2019 financial results, click&nbsp;here.   &nbsp;




Credit

With the end of the cycle, precipitated by the coronavirus pandemic, central banks will step in and there is no risk of interest rates increasing anytime soon.
Redemptions and lack of liquidity have brought down bond prices, and have, therefore, created attractive entry points for some issuers. Prices may not be as extreme as two weeks ago, but still there are opportunities aplenty.
The European Central Bank will purchase sovereign and corporate debt at a pace never seen before. It will provide a strong support for investment grade issuers. However, the credit market remains fragmented. The activity on primary market has not recovered for riskier issuers.
I have compiled a list of bonds by Spanish issuers (or whose parent is Spanish) in a variety of sectors. Most are multinational companies and should be able to emerge less harmed by the looming crisis.
Please read on.
(All data have been sourced from Capital IQ)

With the end of the cycle, precipitated by the coronavirus pandemic, central banks will step in and there is no risk of interest rates increasing anytime soon.
Redemptions and lack of liquidity have brought down bond prices, and have, therefore, created attractive entry points for some issuers. Prices may not be as extreme as two weeks ago, but still there are opportunities aplenty.
The European Central Bank will purchase sovereign and corporate debt at a pace never seen before. It will provide a strong support for investment grade issuers. However, the credit market remains fragmented. The activity on primary market has not recovered for riskier issuers.
I have compiled a list of bonds by Spanish issuers (or whose parent is Spanish) in a variety of sectors. Most are multinational companies and should be able to emerge less harmed by the looming crisis.
Please read on.
(All data have been sourced from Capital IQ)

Spain

Repsol S.A., through subsidiaries, explores for and produces crude oil and natural gas, refines petroleum, and transports petroleum products and liquefied petroleum gas (LPG).  The Company retails gasoline and other products through its chain of gasoline filling stations.  Repsol's petroleum reserves are in Spain, Latin America, Asia, North Africa, and the Middle East and United States.

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Repsol SA (REP SM)

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Spanish Issuers' Credit Opportunities

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Jesus Rodriguez Aguilar

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