Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back on the <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02656122-6A1145856?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">19 April</a>,  <a href="https://www.smartkarma.com/entities/silk-laser-australia-ltd" target="_blank" data-smartkarma-citation="entities:33498:1" rel="noopener"><strong>Silk Laser Australia (SLA AU)</strong></a>, an operator of specialist clinic networks across Australia, announced a $3.15/share NBIO from <strong><a href="https://www.smartkarma.com/entities/wesfarmers-ltd" target="_blank" data-smartkarma-citation="entities:1104:1" rel="noopener">Wesfarmers Ltd (WES AU)</a></strong>.</li>
<li>Wesfarmers was granted 30 <em>business</em> days to undertake due diligence on an exclusive basis. Ahead of that expiry, <strong><a href="https://www.smartkarma.com/entities/ec-healthcare" target="_blank" data-smartkarma-citation="entities:22630:1" rel="noopener">EC Healthcare (2138 HK)</a></strong> has crashed the party with a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02668554-2A1450648?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">$3.35/share NBIO</a>.</li>
<li>Silk's board considers ECH's proposal to be superior. Wesfarmers has five business days to respond. I expect they will. </li>
</ul>


Back on the 19 April,  Silk Laser Australia (SLA AU), an operator of specialist clinic networks across Australia, announced a $3.15/share NBIO from Wesfarmers Ltd (WES AU).
Wesfarmers was granted 30 business days to undertake due diligence on an exclusive basis. Ahead of that expiry, EC Healthcare (2138 HK) has crashed the party with a $3.35/share NBIO.
Silk's board considers ECH's proposal to be superior. Wesfarmers has five business days to respond. I expect they will. 


Silk Laser: EC Healthcare's Superior Counter

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/silk-laser-australia-ltd" target="_blank" data-smartkarma-citation="entities:33498:1" rel="noopener">Silk Laser Australia (SLA AU)</a> disclosed a non-binding indicative offer from <a href="https://www.smartkarma.com/entities/ec-healthcare" target="_blank" data-smartkarma-citation="entities:22630:1" rel="noopener">EC Healthcare (2138 HK)</a> at A$3.35 per share, a 6.3% premium to <a href="https://www.smartkarma.com/entities/wesfarmers-ltd" target="_blank" data-smartkarma-citation="entities:1104:1" rel="noopener">Wesfarmers Ltd (WES AU)</a>’s offer of A$3.15.</li>
<li>The Board has concluded that EC Healthcare’s offer is superior. Wesfarmers has matching rights which expire on 30 May. </li>
<li>Wesfarmers has the balance sheet and synergies to bump its offer. However, it is uncertain if EC Healthcare can engage in a bidding war due to a modest balance sheet.</li>
</ul>



Silk Laser Australia (SLA AU) disclosed a non-binding indicative offer from EC Healthcare (2138 HK) at A$3.35 per share, a 6.3% premium to Wesfarmers Ltd (WES AU)’s offer of A$3.15.
The Board has concluded that EC Healthcare’s offer is superior. Wesfarmers has matching rights which expire on 30 May. 
Wesfarmers has the balance sheet and synergies to bump its offer. However, it is uncertain if EC Healthcare can engage in a bidding war due to a modest balance sheet.


Silk Laser Australia (SLA AU): David Vs Goliath Bidding Battle

External broker reports(aggregated public sources), Taylor Collison

Taylor Collison

External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul><li>On 19 April 2023, Wesfarmers Limited (ASX:WES) through its subsidiary Australian Pharmaceuticals Industries Pty Ltd (API) proposed a non-binding, indicative and conditional proposal to acquire 100% of SLA for cash consideration of $3.15.</li><li>Wilson Asset Management who hold 9.3% of SLA will vote in favour of the scheme.</li><li><div><div><div><p>The Board of SLA have concluded that in the best interests of shareholders they will progress the Indicative Proposal and allow WES to undertake due diligence, and negotiation of a binding Scheme Implementation Scheme.</p></div></div></div></li><li><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></li></ul>

On 19 April 2023, Wesfarmers Limited (ASX:WES) through its subsidiary Australian Pharmaceuticals Industries Pty Ltd (API) proposed a non-binding, indicative and conditional proposal to acquire 100% of SLA for cash consideration of $3.15.Wilson Asset Management who hold 9.3% of SLA will vote in favour of the scheme.The Board of SLA have concluded that in the best interests of shareholders they will progress the Indicative Proposal and allow WES to undertake due diligence, and negotiation of a binding Scheme Implementation Scheme.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Silk Laser Australia Limited (SLA) - Offer from Wesfarmers

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/wesfarmers-ltd" target="_blank" data-smartkarma-citation="entities:1104:1" rel="noopener">Wesfarmers Ltd (WES AU)</a></strong> has made a non-binding indicative Offer, by way of a Scheme, for <strong><a href="https://www.smartkarma.com/entities/silk-laser-australia-ltd" target="_blank" data-smartkarma-citation="entities:33498:1" rel="noopener">Silk Laser Australia (SLA AU)</a></strong>, an operator of specialist clinic networks across Australia. </li>
<li>The Offer Price of $3.15/share is a decent 30.2% premium to last close. Wilson Asset Management, with 9.3% of shares out, is supportive. </li>
<li>Wesfarmers has been granted 30 days to undertake due diligence on an exclusive basis.</li>
</ul>



Wesfarmers Ltd (WES AU) has made a non-binding indicative Offer, by way of a Scheme, for Silk Laser Australia (SLA AU), an operator of specialist clinic networks across Australia. 
The Offer Price of $3.15/share is a decent 30.2% premium to last close. Wilson Asset Management, with 9.3% of shares out, is supportive. 
Wesfarmers has been granted 30 days to undertake due diligence on an exclusive basis.


<ul><li>In 1H23, SLA had cash sales of $102.8m (vs TCe of $102.5m).</li><li>This is a strong result (+35% vs pcp) with early trading data provided by SLA for the first seven weeks of 2H23 February confirming continued strong trading with like for like cash sales +10% vs pcp.</li><li>SLA produced revenue and EBITDA of $50.5m and $12.5m respectively vs TC estimates of $54m and $13.75m.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

In 1H23, SLA had cash sales of $102.8m (vs TCe of $102.5m).This is a strong result (+35% vs pcp) with early trading data provided by SLA for the first seven weeks of 2H23 February confirming continued strong trading with like for like cash sales +10% vs pcp.SLA produced revenue and EBITDA of $50.5m and $12.5m respectively vs TC estimates of $54m and $13.75m.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Silk Laser Australia Limited (SLA) - 1H23 Result – Outperforming Expectations

Australia

Silk Laser Australia Ltd provides personal care services. The Company offers skin and hair care treatment, surgery, body sculpting, and cosmetic injection services. Silk Laser Clinics serves customers in Australia.

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Silk Laser Australia (SLA AU)

Silk Laser: EC Healthcare's Superior Counter

Wesfarmers has a 9.3% stake. They have been conducting DD for over a month. Unless there is something untoward in the accounts, they will counter....

David Blennerhassett