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

Domain Holdings Australia  / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/domain-holdings-australia-ltd" target="_blank" data-smartkarma-citation="entities:26033:1" rel="noopener">Domain Holdings Australia (DHG AU)</a> announced a final non-binding proposal from <a href="https://www.smartkarma.com/entities/costar-group-inc" target="_blank" data-smartkarma-citation="entities:16907:1" rel="noopener">Costar Group (CSGP US)</a> at A$4.43, a 5.5% premium to the previous A$4.20 offer.</li>
<li>The scheme vote is low-risk as <a href="https://www.smartkarma.com/entities/nine-entertainment-co-holdings-ltd" target="_blank" data-smartkarma-citation="entities:708:1" rel="noopener">Nine Entertainment Co Holdings (NEC AU)</a> seems supportive. Nine suggested that the revised price would result in after-tax cash proceeds of A$1.4 billion.</li>
<li>While attractive to precedent transaction multiples, the revised offer remains light compared to peer multiples. Nevertheless, expect a binding proposal to be forthcoming. </li>
</ul>



Domain Holdings Australia (DHG AU) announced a final non-binding proposal from Costar Group (CSGP US) at A$4.43, a 5.5% premium to the previous A$4.20 offer.
The scheme vote is low-risk as Nine Entertainment Co Holdings (NEC AU) seems supportive. Nine suggested that the revised price would result in after-tax cash proceeds of A$1.4 billion.
While attractive to precedent transaction multiples, the revised offer remains light compared to peer multiples. Nevertheless, expect a binding proposal to be forthcoming. 


Domain Holdings (DHG AU): CoStar Returns with a Final NBIO at A$4.43

<ul>
<li>
<a href="https://www.smartkarma.com/entities/domain-holdings-australia-ltd" target="_blank" data-smartkarma-citation="entities:26033:1" rel="noopener">Domain Holdings Australia (DHG AU)</a> announced a non-binding proposal from <a href="https://www.smartkarma.com/entities/costar-group-inc" target="_blank" data-smartkarma-citation="entities:16907:1" rel="noopener">Costar Group (CSGP US)</a> at A$4.20, a 34.6% premium to the undisturbed price of A$3.12 (20 February).</li>
<li>The bid follows CoStar's acquisition of a 16.9% stake in Domain on 20 February. <a href="https://www.smartkarma.com/entities/nine-entertainment-co-holdings-ltd" target="_blank" rel="noopener">Nine Entertainment Co Holdings (NEC AU)</a>'s support is crucial for its success.  </li>
<li>While attractive to precedent transaction multiples, the offer is light compared to peer multiples. Nine is evaluating the offer and will likely push for improved terms.</li>
</ul>



Domain Holdings Australia (DHG AU) announced a non-binding proposal from Costar Group (CSGP US) at A$4.20, a 34.6% premium to the undisturbed price of A$3.12 (20 February).
The bid follows CoStar's acquisition of a 16.9% stake in Domain on 20 February. Nine Entertainment Co Holdings (NEC AU)'s support is crucial for its success.  
While attractive to precedent transaction multiples, the offer is light compared to peer multiples. Nine is evaluating the offer and will likely push for improved terms.


Domain Holdings (DHG AU): CoStar Raids the Register and Launches a NBIO at A$4.20

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Hypermarket reshuffles as <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a> and <a href="https://www.smartkarma.com/entities/dfi-retail-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:7427:1" rel="noopener">DFI Retail (DFI SP)</a> exit <a href="https://www.smartkarma.com/entities/yonghui-superstores-co-ltd" target="_blank" data-smartkarma-citation="entities:15910:1" rel="noopener">Yonghui Superstores (601933 CH)</a>; and <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group  (9988 HK)</a> potentially exits <a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art Retail (6808 HK)</a>.</li>
<li>Evidently the influence of a younger hip third-generation tycoon-scion wasn't the panacea for <a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World Development (17 HK)</a> and its ongoing issues in the HK/China property space.</li>
<li>MBK bumps the Tender Offer prices for <a href="https://www.smartkarma.com/entities/korea-zinc-co-ltd" target="_blank" data-smartkarma-citation="entities:17944:1" rel="noopener">Korea Zinc (010130 KS)</a> by 13.6% to ₩750,000 and <a href="https://www.smartkarma.com/entities/young-poong-precision-corp" target="_blank" data-smartkarma-citation="entities:16188:1" rel="noopener">Young Poong Precision (036560 KS)</a> by 25% to ₩25,000. What with the Choi's do?</li>
</ul>


Hypermarket reshuffles as JD.com (9618 HK) and DFI Retail (DFI SP) exit Yonghui Superstores (601933 CH); and Alibaba Group  (9988 HK) potentially exits Sun Art Retail (6808 HK).
Evidently the influence of a younger hip third-generation tycoon-scion wasn't the panacea for New World Development (17 HK) and its ongoing issues in the HK/China property space.
MBK bumps the Tender Offer prices for Korea Zinc (010130 KS) by 13.6% to ₩750,000 and Young Poong Precision (036560 KS) by 25% to ₩25,000. What with the Choi's do?


Last Week in Event SPACE: DFI/JD.com/Yonghui, Alibaba/Sun Art, New World Development, Austal

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Index Rebalance

<ul>
<li>In this insight, we take a look at the potential index changes for ASX200, 100, 50, and 20 in the run-up to the December 2024 index rebal event.</li>
<li>We currently do not see any index changes for ASX 20 and ASX 100.</li>
<li>We see one change for ASX 100 and two changes for ASX 200 but the final result could depend on relative share price movements for the next two months.</li>
</ul>


In this insight, we take a look at the potential index changes for ASX200, 100, 50, and 20 in the run-up to the December 2024 index rebal event.
We currently do not see any index changes for ASX 20 and ASX 100.
We see one change for ASX 100 and two changes for ASX 200 but the final result could depend on relative share price movements for the next two months.


Quiddity Leaderboard ASX Dec 24: Three Changes Possible; New Long-Short Ideas

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>The Board of <a href="https://www.smartkarma.com/entities/rightmove-plc" target="_blank" data-smartkarma-citation="entities:22116:1" rel="noopener">Rightmove PLC (RMV LN)</a> will consider <a href="https://www.smartkarma.com/entities/rea-group-ltd" target="_blank" data-smartkarma-citation="entities:699:1" rel="noopener">REA Group Ltd (REA AU)</a>'s third proposal (implied value of 770p/share, 39% premium, 20.4x EV/NTM EBITDA, 28x Fwd P/E).</li>
<li>Using 21.3x NTM EBITDA (comps) would indicate fair value of 805p, 4.5% increase to  current offer, implying 29.3x P/E, although proforma leverage would increase to 3.6x.</li>
<li>REA has not stated that the offer is final. Rightmove investors and Board may require further persuasion, as the implied probability of deal success is just 58%.</li>
</ul>


The Board of Rightmove PLC (RMV LN) will consider REA Group Ltd (REA AU)'s third proposal (implied value of 770p/share, 39% premium, 20.4x EV/NTM EBITDA, 28x Fwd P/E).
Using 21.3x NTM EBITDA (comps) would indicate fair value of 805p, 4.5% increase to  current offer, implying 29.3x P/E, although proforma leverage would increase to 3.6x.
REA has not stated that the offer is final. Rightmove investors and Board may require further persuasion, as the implied probability of deal success is just 58%.


REA/Rightmove: Third Proposal Seems Close to Fair Value

United Kingdom

Rightmove plc operates the UK's largest online real estate property portal, rightmove.co.uk, and the Rightmove app. The company offers online property portal services, advertising services for residential and commercial properties, and provides property market data. Rightmove is headquartered in Milton Keynes, United Kingdom, and was founded in 2000.

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Rightmove (RMV LN)

Domain Holdings (DHG AU): CoStar Returns with a Final NBIO at A$4.43

A binding proposal should be forthcoming. The revised and final offer is attractive compared to precedent transaction multiples. The vote is low...

Arun George

Domain Holdings (DHG AU): CoStar Raids the Register and Launches a NBIO at A$4.20

While attractive to precedent transaction multiples, the offer is light compared to peer multiples. Nine, the controlling shareholder, is...

Arun George

Last Week in Event SPACE: DFI/JD.com/Yonghui, Alibaba/Sun Art, New World Development, Austal

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Quiddity Leaderboard ASX Dec 24: Three Changes Possible; New Long-Short Ideas

There could be 5x-9x ADV to trade for the expected ADDs and DELs for ASX 200 in December 2024. We currently estimate one-way flow for the ASX 200...

Janaghan Jeyakumar, CFA

REA/Rightmove: Third Proposal Seems Close to Fair Value

The Board of Rightmove PLC (RMV LN) will consider REA Group Ltd (REA AU)'s third proposal (implied value of 770p/share, 39% premium, 20.4x EV/NTM...

Jesus Rodriguez Aguilar

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