Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back in December last year, Aussie-listed equities manager <a href="https://www.smartkarma.com/entities/perpetual-ltd" target="_blank" data-smartkarma-citation="entities:599:1" rel="noopener">Perpetual Ltd (PPT AU) </a><a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02750947-2A1492987?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">rejected</a> <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Washington H. Soul Pattinson (SOL AU)</a>'s $3bn all-scrip non-binding indicative proposal. </li>
<li>Yet Soul Patt's proposal was in sync with Perpetual's previously flagged intentions to explore a potential separation of its corporate trust and wealth management businesses, from its asset management business.</li>
<li>Perpetual has now <a href="https://announcements.asx.com.au/asxpdf/20240508/pdf/063ccykhk7w69h.pdf" target="_blank" rel="noopener">entered a Scheme</a>, to carve out the corporate trust and wealth management businesses to KKR for A$2.175bn. A lack of clarity on net proceeds saw shares rollover.</li>
</ul>


Back in December last year, Aussie-listed equities manager Perpetual Ltd (PPT AU) rejected Washington H. Soul Pattinson (SOL AU)'s $3bn all-scrip non-binding indicative proposal. 
Yet Soul Patt's proposal was in sync with Perpetual's previously flagged intentions to explore a potential separation of its corporate trust and wealth management businesses, from its asset management business.
Perpetual has now entered a Scheme, to carve out the corporate trust and wealth management businesses to KKR for A$2.175bn. A lack of clarity on net proceeds saw shares rollover.


Perpetual (PPT AU): Shareholders Divided Over Carve Out

<ul>
<li>On the 18th July, diagnostic imaging provider <a href="https://www.smartkarma.com/entities/capitol-health-ltd" target="_blank" data-smartkarma-citation="entities:14504:1" rel="noopener">Capitol Health (CAJ AU)</a> entered a Scheme with <a href="https://www.smartkarma.com/entities/integral-diagnostics-ltd" target="_blank" data-smartkarma-citation="entities:24306:1" rel="noopener">Integral Diagnostics (IDX AU)</a>. IDX will issue 0.12849 new IDX shares for each Capitol share</li>
<li>Upon completing the transaction, Integral would hold ~63% in the MergeCo. They key risk is the ACCC signing off. A decision is expected on (or around) the 28th November.  </li>
<li>The Scheme Booklet is <a href="https://announcements.asx.com.au/asxpdf/20240924/pdf/0687rhtyjsbvt0.pdf" target="_blank" rel="noopener">now out</a>, with a Scheme Meeting to be held on the 31st October. Expected implementation on the 14th November. The IE says fair &amp; reasonable.</li>
</ul>


On the 18th July, diagnostic imaging provider Capitol Health (CAJ AU) entered a Scheme with Integral Diagnostics (IDX AU). IDX will issue 0.12849 new IDX shares for each Capitol share
Upon completing the transaction, Integral would hold ~63% in the MergeCo. They key risk is the ACCC signing off. A decision is expected on (or around) the 28th November.  
The Scheme Booklet is now out, with a Scheme Meeting to be held on the 31st October. Expected implementation on the 14th November. The IE says fair &amp; reasonable.


Capitol Health (CAJ AU)/Integral Diagnostics (IDX AU):  31st Oct Merger Vote

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of ASX Stocks as of Aug 23rd (reported today) which has an aggregated short interest worth USD24.7bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Goodman, Fortescue, Bluescope Steel, Westgold Resources, Charter Hall, Aristocrat Leisure.</li>
</ul>


We analyzed the changes in short interest of ASX Stocks as of Aug 23rd (reported today) which has an aggregated short interest worth USD24.7bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Goodman, Fortescue, Bluescope Steel, Westgold Resources, Charter Hall, Aristocrat Leisure.


ASX Short Interest Weekly (Aug 23rd): Goodman, Fortescue, Bluescope Steel, Westgold Resources

<ul>
<li>Back in April 2022, Australia's largest private hospital operator <a href="https://www.smartkarma.com/entities/ramsay-health-care-ltd" target="_blank" data-smartkarma-citation="entities:673:1" rel="noopener">Ramsay Health Care (RHC AU)</a> announced an unsolicited, non-binding Offer from KKR at A$88.00/share. Arguably, KKR dodged a bullet.</li>
<li>RHC's share price took another leg down last week after RHC announced weaker-than-expected FY24 earnings; plus a write-down of its European/UK ops. RHC is now ~50% adrift of KKR's NBIO.</li>
<li>Not altogether surprisingly, various media sources are reporting private equity outfits are (again) running a diagnostic check on RHC. </li>
</ul>


Back in April 2022, Australia's largest private hospital operator Ramsay Health Care (RHC AU) announced an unsolicited, non-binding Offer from KKR at A$88.00/share. Arguably, KKR dodged a bullet.
RHC's share price took another leg down last week after RHC announced weaker-than-expected FY24 earnings; plus a write-down of its European/UK ops. RHC is now ~50% adrift of KKR's NBIO.
Not altogether surprisingly, various media sources are reporting private equity outfits are (again) running a diagnostic check on RHC. 


Private Equity Examining Ramsay Health (RMC AU). Again.

<ul>
<li>Back on the 17th June, diagnostic imaging provider <a href="https://www.smartkarma.com/entities/capitol-health-ltd" target="_blank" data-smartkarma-citation="entities:14504:1" rel="noopener">Capitol Health (CAJ AU)</a> announced it had entered into a process deed with <a href="https://www.smartkarma.com/entities/integral-diagnostics-ltd" target="_blank" data-smartkarma-citation="entities:24306:1" rel="noopener">Integral Diagnostics (IDX AU)</a>. Terms are now firmed.
</li>
<li>
IDX will issue 0.12849 new IDX shares for each Capitol share. Scrip terms are unchanged from that announced previously. Upon completing the transaction, Integral would hold 63% in the NewCo. </li>
<li>Apart from ACCC signing off, this transaction looks priced to complete. </li>
</ul>


Back on the 17th June, diagnostic imaging provider Capitol Health (CAJ AU) announced it had entered into a process deed with Integral Diagnostics (IDX AU). Terms are now firmed.


IDX will issue 0.12849 new IDX shares for each Capitol share. Scrip terms are unchanged from that announced previously. Upon completing the transaction, Integral would hold 63% in the NewCo. 
Apart from ACCC signing off, this transaction looks priced to complete. 


Capitol Health (CAJ AU)/Integral Diagnostics (IDX AU): An Improved Image - Now Firmed

Australia

Washington H. Soul Pattinson & Company Limited is an investment holding company. The Company owns shares and properties, coal mining, bulk handling, commercial television licensee, telecommunications carrier, merchant banking, funds management, pharmaceutical retailing, manufacture, processing and marketing of biscuits and cakes.

Washington H. Soul Pattinson and Co. Ltd (SOL AU)

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Washington H. Soul Pattinson and Co. Ltd (SOL AU)

Perpetual (PPT AU): Shareholders Divided Over Carve Out

Perpetual (PPT AU) is down >7% after the ATO flagged a likely tax bill between A$493mn-A$529mn arising from the KKR deal. "Perpetual ... disagrees...

David Blennerhassett

Capitol Health (CAJ AU)/Integral Diagnostics (IDX AU): 31st Oct Merger Vote

Trading wide at a ~5.2%/45% gross/annualised spread. I'm still not comfortable with the ACCC risk here. I'd avoid the arb. I'd be looking...

David Blennerhassett

ASX Short Interest Weekly (Aug 23rd): Goodman, Fortescue, Bluescope Steel, Westgold Resources

We analyzed ASX short interest report for the past week and highlight short interest changes in Goodman, Fortescue, Bluescope Steel, Westgold...

Ke Yan, CFA, FRM

Private Equity Examining Ramsay Health (RMC AU). Again.

Ramsay's share price is pretty beaten up. FY24 earnings are expected to be roughly in line with FY22 figures. And KKR was still willing to pay...

David Blennerhassett

Capitol Health (CAJ AU)/Integral Diagnostics (IDX AU): An Improved Image - Now Firmed

I'm not entirely comfortable with ACCC risk here. Without that comfort, I'd avoid the arb. I'd be looking at Healius (HLS AU) on the back on this...

David Blennerhassett

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