In today’s briefing:
- Goodman Group (GMG AU) Placement: Limited Index Flows
- Goodman Group Placement – Large Shareholder Looking to Raise US$1.2bn but Discount Is Tight
- DigiCo Infrastructure REIT IPO – Looks Decent – After All the Adjustments
- Latin Resources (LRS AU): 16th January Merger Vote
- Latin Resources (LRS AU): Pilbara Minerals (PLS AU)’s Scheme Vote on 16 January
- SG Fleet (SGF AU): Now PEP’s A$3.50/Share Firm Offer
- Amaero International Ltd – Locking in supply of US melt and forged titanium bar
Goodman Group (GMG AU) Placement: Limited Index Flows
- China Investment Corp owns 7.84% of Goodman Group (GMG AU) and is looking to sell 50.4m shares (2.64% of shares out) at a price range of A$37.55-37.6/share, a tiny discount.
- Goodman Group (GMG AU) has run away from its peers over the last couple of years and there could be a move lower in the stock following the placement.
- There will be limited passive buying in the short-term coinciding with the placement. There will be some more passive buying in February.
Goodman Group Placement – Large Shareholder Looking to Raise US$1.2bn but Discount Is Tight
- CIC is looking to raise around US$1.2bn, via selling around 2.6% of its stake in Goodman Group (GMG AU) , via a block trade.
- Goodman’s shares have performed exceptionally well over the past year, driven by its pivot towards data centers.
- In this note, we will talk about the placement and run the deal through our ECM framework.
DigiCo Infrastructure REIT IPO – Looks Decent – After All the Adjustments
- DigiCo REIT (DIGICO AU) is looking to raise around US$1.3bn in its Australian IPO.
- DigiCo REIT (DREIT) aims to be a diversified owner, operator and developer of data centres, with a global portfolio and broad investment mandate across stabilised, value-add and development opportunities
- We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.
Latin Resources (LRS AU): 16th January Merger Vote
- Back on the 15th August, lithium play Latin Resources (LRS AU) entered into a Scheme with Pilbara Minerals (PLS AU). PLS offered 0.07 new PLS shares for every LRS share.
- The Scheme Booklet was slightly delayed to reflect Pilbara’s recently adjusted FY25 guidance – nothing deal/project related.
- The Scheme Booklet is now out, with a Scheme Meeting to be held on the 16th Jan. Expected implementation on the 4th Feb. The IE (BDO) says fair & reasonable.
Latin Resources (LRS AU): Pilbara Minerals (PLS AU)’s Scheme Vote on 16 January
- On 29 November, the Latin Resources (LRS AU) IE considered Pilbara Minerals (PLS AU)’s all-scrip offer fair and reasonable. The offer is 0.07 PLS share per LRS share.
- The key conditions are LRS shareholder and Brazilian regulatory approvals. No disinterested shareholder holds the 25% blocking stake, and low retail ownership lowers the headcount test risk.
- An attractive offer and the lack of a competing bidder suggest a done deal. At the last close, for the 4 February payment, the gross/annualised spread was 2.9%/18.8%.
SG Fleet (SGF AU): Now PEP’s A$3.50/Share Firm Offer
- Back on the 25 November, SG Fleet (SGF AU) (SGF), an Aussie provider of fleet leasing services, announced a A$3.50/share non-binding/indicative proposal from Sydney PE outfit Pacific Equity Partners (PEP).
- The initial due diligence period was extended one week to the 6th December. That short timeframe suggested a firm Offer was imminent. Both parties have now entered into a SID.
- Terms remains the same as the NBIO. SGF’s largest shareholder, Super Group (SPG SJ) (53.58%), is supportive. Implementation is expected in the 1Q25.
Amaero International Ltd – Locking in supply of US melt and forged titanium bar
- RaaS has published a flash comment on advanced materials manufacturing group Amaero International (ASX:3DA) following the company’s announcement yesterday that it has signed a three-year supply agreement for US melt and forged titanium bar with The Perryman Company, a US-based privately owned, fully-integrated manufacturer of titanium products.
- For the term of the contract, Amaero says Perryman will be its preferred and primary supplier of high-quality, reliable and scalable US melt and forged titanium alloy bar feedstock for the atomisation of premium spherical powder.
- The contract guarantees that Amaero will have sufficient titanium bars to meet anticipated contractual demand for Ti64 powder in an environment of heightening tariff wars between the US and China, limited sources of supply for critical metals and ongoing demand from the US defence, aerospace and space components sector for full lot traceability of feedstock.
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