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>
<a href="https://www.smartkarma.com/entities/perpetual-ltd" target="_blank" data-smartkarma-citation="entities:599:1" rel="noopener">Perpetual Ltd (PPT AU)</a> has received a revised non-binding indicative proposal from EQT at A$22.07 per share, a 2.0% premium to the previously rejected offer of A$21.64 per share. </li>
<li>While the revised offer remains below the Board’s rumoured floor price of A$25.00, it is reasonable compared to historical ranges and is a 42.4% premium to the undisturbed price. </li>
<li>Given the low premium to the earlier rejected offer, the Board is highly likely to reject the revised offer. Nevertheless, the Board will be under pressure to engage.  </li>
</ul>



Perpetual Ltd (PPT AU) has received a revised non-binding indicative proposal from EQT at A$22.07 per share, a 2.0% premium to the previously rejected offer of A$21.64 per share. 
While the revised offer remains below the Board’s rumoured floor price of A$25.00, it is reasonable compared to historical ranges and is a 42.4% premium to the undisturbed price. 
Given the low premium to the earlier rejected offer, the Board is highly likely to reject the revised offer. Nevertheless, the Board will be under pressure to engage.  


Perpetual (PPT AU): EQT Returns with a Revised NBIO at A$22.07

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/perpetual-ltd" target="_blank" data-smartkarma-citation="entities:599:1" rel="noopener">Perpetual Ltd (PPT AU)</a> has been in the cross hairs since KKR's all-in 2010 tilt; while bids have landed for various units, all of which came to nought.</li>
<li>In March of this year, Perpetual announced it was offloading its wealth management arm to Bain for A$550mn. Then last week, Perpetual rejected EQT's A$21.64/share all cash NBIO.</li>
<li>Perpetual is trading ~12% adrift of those indicative terms - and down 9% in the past year.  There are signs the Street is turning (mildly) positive.</li>
</ul>



Perpetual Ltd (PPT AU) has been in the cross hairs since KKR's all-in 2010 tilt; while bids have landed for various units, all of which came to nought.
In March of this year, Perpetual announced it was offloading its wealth management arm to Bain for A$550mn. Then last week, Perpetual rejected EQT's A$21.64/share all cash NBIO.
Perpetual is trading ~12% adrift of those indicative terms - and down 9% in the past year.  There are signs the Street is turning (mildly) positive.


Revisiting Perpetual (PPT AUJ) After EQT's Revived - And Rejected - Bid

<ul>
<li>I tally 29 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.</li>
<li>One new deal was discussed on Smartkarma this week: that <a href="https://www.smartkarma.com/entities/dentsu-inc" target="_blank" data-smartkarma-citation="entities:12434:1" rel="noopener">Dentsu Inc (4324 JP)</a> had finalised plans to take its system integrator subsidiary <a href="https://www.smartkarma.com/entities/dentsu-soken-inc" target="_blank" data-smartkarma-citation="entities:20535:1" rel="noopener">Dentsu Soken (4812 JP)</a> private.</li>
<li>Key updates/news also took place on: <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://www.smartkarma.com/entities/atlas-arteria-ltd" target="_blank" data-smartkarma-citation="entities:14430:1" rel="noopener">Atlas Arteria (ALX AU)</a>, <a href="https://www.smartkarma.com/entities/qube-holdings-ltd" target="_blank" data-smartkarma-citation="entities:958:1" rel="noopener">Qube Holdings (QUB AU)</a>, and <a href="https://www.smartkarma.com/entities/nippon-dry-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:13528:1" rel="noopener">Nippon Dry Chemical (1909 JP)</a>.</li>
</ul>


I tally 29 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
One new deal was discussed on Smartkarma this week: that Dentsu Inc (4324 JP) had finalised plans to take its system integrator subsidiary Dentsu Soken (4812 JP) private.
Key updates/news also took place on: Perpetual Ltd (PPT AU), Atlas Arteria (ALX AU), Qube Holdings (QUB AU), and Nippon Dry Chemical (1909 JP).


Asia-Pac Weekly Wrap: Info Services Intl Dentsu, Perpetual, Atlas Arteria, Qube, Nippon Dry Chem

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digital-garage-inc" target="_blank" data-smartkarma-citation="entities:13747:1" rel="noopener">Digital Garage (4819 JP)</a> is probably too cheap. There is a fair bit of "easy" value there even assuming all the equity affiliate stakes are worth, well, nothing.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a> (CRP)'s 81.81%-held <a href="https://www.smartkarma.com/entities/china-resources-new-energy-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:50306:1" rel="noopener">China Resources New Energy (001248 CH)</a> xlosed up ~137% on debut, and worth ~350% of CRP's market cap. That's not sustainable.</li>
<li>
<a href="https://www.smartkarma.com/entities/atlas-arteria-ltd" target="_blank" data-smartkarma-citation="entities:14430:1" rel="noopener">Atlas Arteria (ALX AU)</a> sticks to its guns, urging shareholders to hold their stock, signalling IFM can pay more. But realistically, IFM has declared terms best &amp; final.</li>
</ul>



Digital Garage (4819 JP) is probably too cheap. There is a fair bit of "easy" value there even assuming all the equity affiliate stakes are worth, well, nothing.

China Resources Power (836 HK) (CRP)'s 81.81%-held China Resources New Energy (001248 CH) xlosed up ~137% on debut, and worth ~350% of CRP's market cap. That's not sustainable.

Atlas Arteria (ALX AU) sticks to its guns, urging shareholders to hold their stock, signalling IFM can pay more. But realistically, IFM has declared terms best &amp; final.


Last Week In Event SPACE: Digital Garage/Kakaku, Chine Resources Power, Atlas Arteria

<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

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)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

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

Perpetual (PPT AU): EQT Returns with a Revised NBIO at A$22.07

Given the low premium to the earlier rejected offer, the Board is highly likely to reject the revised offer. Nevertheless, the Board will be under...

Arun George

Revisiting Perpetual (PPT AUJ) After EQT's Revived - And Rejected - Bid

Perpetual is not expensive here. I might get some exposure here; but preferably on any material pullback as the EQT buzz subsides.

David Blennerhassett

Asia-Pac Weekly Wrap: Info Services Intl Dentsu, Perpetual, Atlas Arteria, Qube, Nippon Dry Chem

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Last Week In Event SPACE: Digital Garage/Kakaku, Chine Resources Power, Atlas Arteria

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

Perpetual (PPT AU): Shareholders Divided Over Carve Out

Perpetual has rejected a A$21.64/share Offer - less any divs - from EQT. EQT dipped out on Perpetual’s 2024 break-up process. As did Soul Patts,...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)