Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Doosan Bobcat Inc / Equity Capital Markets

This is Part I of our in-depth analysis of Doosan Bobcat IPO. Our Part I report has three major sections, including a) comparable companies valuation/margins analysis, b) an explanation of a potential cyclical downturn in the US housing market, and c) a financial analysis of the company. <a href="https://www.smartkarma.com/entities/23592" target="_blank" data-smartkarma-citation="entities:23592:1">Doosan Bobcat Inc. (1253130D KS)</a>, which was established on April 25th, 2014, manufactures compact construction equipment including skid-steer loaders, compact track loaders, mini-excavators, and generators.Our initial valuation analysis suggests that the intrinsic value of Doosan Bobcat shares are about 8-22% lower than the low-end IPO valuation range of 4.1 trillion won (US$3.7 billion) which would be about 3.2 trillion won (US$2.95 billion) to 3.77 trillion won (US$3.4 billion).

This is Part I of our in-depth analysis of Doosan Bobcat IPO. Our Part I report has three major sections, including a) comparable companies valuation/margins analysis, b) an explanation of a potential cyclical downturn in the US housing market, and c) a financial analysis of the company. Doosan Bobcat Inc. (1253130D KS), which was established on April 25th, 2014, manufactures compact construction equipment including skid-steer loaders, compact track loaders, mini-excavators, and generators.Our initial valuation analysis suggests that the intrinsic value of Doosan Bobcat shares are about 8-22% lower than the low-end IPO valuation range of 4.1 trillion won (US$3.7 billion) which would be about 3.2 trillion won (US$2.95 billion) to 3.77 trillion won (US$3.4 billion). 

Doosan Bobcat IPO (Part 1) - Beware of High Valuation & A Cyclical Downturn

Public Relations and Social Media Manager, Dechert LLP

Peggy Heffner

Public Relations and Social Media Manager

Dechert is a global specialist law firm

Dechert LLP

Dechert is a global specialist law firm.
Focused on sectors with the greatest complexities, legal intricacies and highest regulatory demands, we excel in delivering practical commercial judgment and deep legal expertise for high-stakes matters.

Our work is widely recognized. We have 20 standout practices noted by Chambers Global, including global-wide rankings for arbitration, corporate investigations, anti-corruption, investment funds and life sciences. Named Antitrust Team of the Year, Chambers USA commends our “accomplished group” as “routinely sought after to handle some of the most significant litigation and transactions in the antitrust world.” 

In an increasingly challenging environment, clients look to us to serve them in ways that are faster, sharper and leaner without compromising excellence. We developed a first-of-its kind legal project management department, which uses technology, people and processes to drive efficiency and deliver value for our clients.

We are innovators. Dechert ranked #7 in the Financial Times’ Top North American Innovative Law Firms. Financial Times also recognizes us among the Top European Innovative Law Firms and highly commends World Compass, our marketing compliance service, which offers investment firms advice in more than 100 jurisdictions.

Event-Driven

<ul><li>Significant merger investigations during the first half of 2016 lasted 9.5 months on average—on par with CY2015, but more than 30 percent longer than from 2011 to 2013.</li><li>In the first half of 2016, there were 14 significant merger investigations, which is on pace to challenge the record set in CY2015.</li><li>The antitrust agencies filed seven complaints over the 12 months ending Q2 2016, compared to four complaints in the prior 12 months.</li><li>The government lost three merger challenges over the past 10 months after not losing a single trial challenging a reportable transaction in the prior eight years.</li><li>Merger litigation filed in 2015 lasted nearly 5 months, about 20 percent longer than earlier litigated challenges.</li></ul>

Significant merger investigations during the first half of 2016 lasted 9.5 months on average—on par with CY2015, but more than 30 percent longer than from 2011 to 2013.In the first half of 2016, there were 14 significant merger investigations, which is on pace to challenge the record set in CY2015.The antitrust agencies filed seven complaints over the 12 months ending Q2 2016, compared to four complaints in the prior 12 months.The government lost three merger challenges over the past 10 months after not losing a single trial challenging a reportable transaction in the prior eight years.Merger litigation filed in 2015 lasted nearly 5 months, about 20 percent longer than earlier litigated challenges.

Antitrust Investigation Duration Near Record Levels; Merger Litigation Taking Longer, Too

M&A Reporting, CTFN

Jonathan Spitzer

M&A Reporting

CTFN

Bringing the marketplace leading coverage of mergers, events, and major corporate actions, CTFN has a team of seasoned reporters from Los Angeles to London, publishing news that advances stories that matter to event-driven investors and deal professionals.

A source close to Zoomlion said that the company was "very keen" on acquiring Terex and "absolutely loved" its management.  However, Zoomlion has a "very disciplined" approach to M&amp;A and was not willing to pay a price of $31 per share or above for the rest of Terex, as Terex management had requested.

A source close to Zoomlion said that the company was "very keen" on acquiring Terex and "absolutely loved" its management.  However, Zoomlion has a "very disciplined" approach to M&amp;A and was not willing to pay a price of $31 per share or above for the rest of Terex, as Terex management had requested.

Terex/Zoomlion Deal Faltered on Price; Konecranes May Need Divestiture with MHPS

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Equity Bottom-Up

Over the next 24 months, a range of heavy equipment makers in agricultural, construction, mining, and trucking equipment will begin offering telematics as standard equipment in their products. This is a little-discussed $15 billion market that encompasses practically all technologies for sending, receiving, and storing data via telecommunications devices.As this theme continues to play out, we see a few attractive investment opportunities to own excellent franchises with solid exposure to telematics, attractive moats, and reasonable valuationsAnalyst: Kwame Webb

Over the next 24 months, a range of heavy equipment makers in agricultural, construction, mining, and trucking equipment will begin offering telematics as standard equipment in their products. This is a little-discussed $15 billion market that encompasses practically all technologies for sending, receiving, and storing data via telecommunications devices.As this theme continues to play out, we see a few attractive investment opportunities to own excellent franchises with solid exposure to telematics, attractive moats, and reasonable valuationsAnalyst: Kwame Webb

Telematics in Heavy Equipment: Significant Potential to Strengthen Moats, but Many OEMs Are Passing

Chinese construction machinery manufacturer Zoomlion Co. Ltd. might not be able to finance its proposed $30 per share all-cash offer for U.S. rival Terex Corp., a source familiar with the industry told <a href="http://ctfn.news" target="_blank">CTFN</a>.

Chinese construction machinery manufacturer Zoomlion Co. Ltd. might not be able to finance its proposed $30 per share all-cash offer for U.S. rival Terex Corp., a source familiar with the industry told CTFN.

Zoomlion's Financing for Terex Bid Questioned

United States

Terex Corporation is a diversified global manufacturer operating in four business segments: aerial work platforms; construction; cranes; and materials processing.  Terex manufactures a broad range of equipment for use in various industries including the construction, infrastructure, quarrying, mining, shipping, transportation, refining, energy and utility industries.

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Terex Corp (TEX US)

Doosan Bobcat IPO (Part 1) - Beware of High Valuation & A Cyclical Downturn

This is Part I of our in-depth analysis of Doosan Bobcat IPO. Our Part I report has three major sections, including a) comparable companies...

Douglas Kim

Antitrust Investigation Duration Near Record Levels; Merger Litigation Taking Longer, Too

Significant merger investigations during the first half of 2016 lasted 9.5 months on average—on par with CY2015, but more than 30 percent longer...

Dechert LLP

Terex/Zoomlion Deal Faltered on Price; Konecranes May Need Divestiture with MHPS

A source close to Zoomlion said that the company was "very keen" on acquiring Terex and "absolutely loved" its management. However, Zoomlion has a...

CTFN

Telematics in Heavy Equipment: Significant Potential to Strengthen Moats, but Many OEMs Are Passing

Over the next 24 months, a range of heavy equipment makers in agricultural, construction, mining, and trucking equipment will begin offering...

Morningstar, Inc.

Zoomlion's Financing for Terex Bid Questioned

Chinese construction machinery manufacturer Zoomlion Co. Ltd. might not be able to finance its proposed $30 per share all-cash offer for U.S. rival...

CTFN

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