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>In response to media speculation, <a href="https://www.smartkarma.com/entities/cie-de-saint-gobain" target="_blank" data-smartkarma-citation="entities:21547:1" rel="noopener">Cie De Saint-Gobain (SGO FP)</a> confirmed a non-binding proposal for <a href="https://www.smartkarma.com/entities/csr-ltd" target="_blank" data-smartkarma-citation="entities:17380:1" rel="noopener">CSR Ltd (CSR AU)</a> at A$9.00, a 32.9% premium to the undisturbed price.</li>
<li>Saint-Gobain is conducting confirmatory due diligence. CSR is at a trading halt concerning receiving a proposal regarding a potential material transaction involving CSR.</li>
<li>Shareholders should be supportive as the offer represents a 15-year high. The timing of a binding agreement is the key risk.  </li>
</ul>


In response to media speculation, Cie De Saint-Gobain (SGO FP) confirmed a non-binding proposal for CSR Ltd (CSR AU) at A$9.00, a 32.9% premium to the undisturbed price.
Saint-Gobain is conducting confirmatory due diligence. CSR is at a trading halt concerning receiving a proposal regarding a potential material transaction involving CSR.
Shareholders should be supportive as the offer represents a 15-year high. The timing of a binding agreement is the key risk.  


CSR (CSR AU): Saint-Gobain’s Non-Binding Proposal at A$9.00

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seven-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:803:1" rel="noopener">Seven Group Holdings (SVW AU)</a> has launched a takeover offer for <a href="https://www.smartkarma.com/entities/boral-ltd" target="_blank" data-smartkarma-citation="entities:1487:1" rel="noopener">Boral Ltd (BLD AU)</a>. The minimum consideration is A$6.05 (A$1.50 cash and 0.1116 SVW shares per BLD share).</li>
<li>Based on SVW reaching certain voting thresholds, the offer could be increased by an additional A$0.20 cash per share, implying a maximum consideration of A$6.25 per share.</li>
<li>While the low offer premium could deter acceptances, SVW aims to spur acceptances by warning it will delist BLD and not pay dividends for the foreseeable future. </li>
</ul>



Seven Group Holdings (SVW AU) has launched a takeover offer for Boral Ltd (BLD AU). The minimum consideration is A$6.05 (A$1.50 cash and 0.1116 SVW shares per BLD share).
Based on SVW reaching certain voting thresholds, the offer could be increased by an additional A$0.20 cash per share, implying a maximum consideration of A$6.25 per share.
While the low offer premium could deter acceptances, SVW aims to spur acceptances by warning it will delist BLD and not pay dividends for the foreseeable future. 


Boral (BLD AU): Seven Group (SVW AU)’s Carrot and Stick Offer

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>Having lagged competitors on share price basis since Holcim/Lafarge merger, on 29 January, <a href="https://www.smartkarma.com/entities/holcim-ltd-7f60ceaa-51af-4f85-ac5f-114595eb04f3" target="_blank" data-smartkarma-citation="entities:27916:1" rel="noopener">Holcim (HOLN SW)</a> announced plans to spin-off and list its North American business in the US.</li>
<li>Infrastructure and housing are reponsible for U.S. comparables to trade on 14.7x median EV/NTM Fwd EBITDA, in sharp contrast to 5.4x median EV/NTM Fwd EBITDA of European comparables. </li>
<li>Even if valuing the RoW business at the lower median European multiples, the spin-off should be value accretive. My fair value estimate of CHF 84.47/share represents 25.7% upside.</li>
</ul>


Having lagged competitors on share price basis since Holcim/Lafarge merger, on 29 January, Holcim (HOLN SW) announced plans to spin-off and list its North American business in the US.
Infrastructure and housing are reponsible for U.S. comparables to trade on 14.7x median EV/NTM Fwd EBITDA, in sharp contrast to 5.4x median EV/NTM Fwd EBITDA of European comparables. 
Even if valuing the RoW business at the lower median European multiples, the spin-off should be value accretive. My fair value estimate of CHF 84.47/share represents 25.7% upside.


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Vulcan Materials Company delivered a positive result and managed an all-around beat in the quarter.</li><li>Vulcan has increased its gross margin and strictly managed SAG costs to increase its adjusted EBITDA margin by 350 basis points year-to-date.</li><li>With excellent price growth and restrained cost increases over the previous year, cash gross profit per ton increased.</li></ul>

Vulcan Materials Company delivered a positive result and managed an all-around beat in the quarter.Vulcan has increased its gross margin and strictly managed SAG costs to increase its adjusted EBITDA margin by 350 basis points year-to-date.With excellent price growth and restrained cost increases over the previous year, cash gross profit per ton increased.

Vulcan Materials Company: Solidifying Its Base with Surging Gross Margins! - Major Drivers

Equity Capital Markets

Vulcan Materials Co / Equity Capital Markets

<ul><li>It was a successful Q1 for Vulcan Materials as they delivered an all-around beat and projected attractive growth for 2023.</li><li>Despite lower volumes in significant product lines, gross profit improved by 12%, and gross margin expanded by 90 basis points.</li><li>We give Vulcan Materials Company a 'Hold' rating with a revised target price.</li></ul>

It was a successful Q1 for Vulcan Materials as they delivered an all-around beat and projected attractive growth for 2023.Despite lower volumes in significant product lines, gross profit improved by 12%, and gross margin expanded by 90 basis points.We give Vulcan Materials Company a 'Hold' rating with a revised target price.

Vulcan Materials Company: Does It Have A Significant Competitive Advantage? – Key Drivers

United States

Vulcan Materials Company produces construction aggregates.  The Company principal product lines are aggregates, asphalt mix and concrete, and cement.

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Vulcan Materials Co (VMC US)

CSR (CSR AU): Saint-Gobain’s Non-Binding Proposal at A$9.00

Shareholders should be supportive as the offer represents a 15-year high. The timing of a binding agreement is the key risk.

Arun George

Boral (BLD AU): Seven Group (SVW AU)’s Carrot and Stick Offer

While the low offer premium could deter acceptances, SVW aims to spur acceptances by warning it will delist BLD and not pay dividends for the...

Arun George

Value from US Spin-Off

Holcim plans to spin-off and list its North American business in the US, which should be value accretive and could result in a 25.7% upside.

Jesus Rodriguez Aguilar

Vulcan Materials Company: Solidifying Its Base with Surging Gross Margins! - Major Drivers

Vulcan Materials Company delivered a positive result and managed an all-around beat in the quarter. Vulcan has increased its gross margin and...

Baptista Research

Vulcan Materials Company: Does It Have A Significant Competitive Advantage? – Key Drivers

It was a successful Q1 for Vulcan Materials as they delivered an all-around beat and projected attractive growth for 2023. Despite lower volumes...

Baptista Research

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CSR (CSR AU): Saint-Gobain’s Non-Binding Proposal at A$9.00

Shareholders should be supportive as the offer represents a 15-year high. The timing of a binding agreement is the key risk.

Arun George

Boral (BLD AU): Seven Group (SVW AU)’s Carrot and Stick Offer

While the low offer premium could deter acceptances, SVW aims to spur acceptances by warning it will delist BLD and not pay dividends for the...

Arun George

Value from US Spin-Off

​Holcim plans to spin-off and list its North American business in the US, which should be value accretive and could result in a 25.7% upside.

Jesus Rodriguez Aguilar

Vulcan Materials Company: Solidifying Its Base with Surging Gross Margins! - Major Drivers

Vulcan Materials Company delivered a positive result and managed an all-around beat in the quarter. Vulcan has increased its gross margin and...

Baptista Research

Vulcan Materials Company: Does It Have A Significant Competitive Advantage? – Key Drivers

It was a successful Q1 for Vulcan Materials as they delivered an all-around beat and projected attractive growth for 2023. Despite lower volumes...

Baptista Research

Holcim plans to spin-off and list its North American business in the US, which should be value accretive and could result in a 25.7% upside.