Daily Brief Australia: Guzman Y Gomez, Altium Ltd, IDP Education, Brookside Energy and more

• Guzman Y Gomez plans to raise around US$160m in its Australian IPO.
• GYG is a quick service restaurant business with more than 200 restaurants globally. It mainly focuses on fresh, made-to-order, Mexican-inspired food.
• In this note, we look at the company’s prior performance and future prospects.

• The Altium Ltd (ALU AU) IE considers Renesas Electronics (6723 JP)’ A$68.50 scheme offer fair and reasonable as it is above the midpoint of the A$62.37 to A$70.27 valuation range. 
• The offer is conditional on remaining regulatory approvals (FIRB, CFIUS) and shareholder approval. 
• The offer price is attractive and 31% above the all-time high. At the last close and for the 1 August payment, the gross/annualised spread was 1.7%/11.6%.

• With the review period complete, there are 3 stocks that are close to the deletion zone and could be removed from the index at the June rebalance.
• Even if there are no constituent changes, capping changes will lead to one-way turnover of 3.6% and a one-way trade of A$83m.
• There are 6 stocks with over A$5m to trade from passive trackers but the impact on the stocks is not very high.

• Guzman Y Gomez plans to raise around US$160m in its Australian IPO.
• GYG is a quick service restaurant business with more than 200 restaurants globally. It mainly focuses on fresh, made-to-order, Mexican-inspired food.
• In this note, we talk about the not-so-positive aspects of the deal.

• Back on the 15th Feb, Renesas Electronics (6723 JP), a supplier of advanced semiconductors, entered into a Scheme with Altium Ltd (ALU AU).
• Altium shareholders are being offered A$68.50/share, in cash, a lifetime high.
• The Scheme Booklet is now out, with a Scheme Meeting to be held on the 12th July. Expected implementation on the 1 August. The IE says fair & reasonable.

• Long Brookside Energy offers high-quality assets at a significant discount to its net present value and reserves value
• Investors are essentially getting 5,000 acres, 1,400 barrels of production, and 12 million barrels of reserves in the South SCOOP play in Oklahoma for a bargain
• Management is actively buying back shares to take advantage of the undervaluation, with plans for more buybacks in the future

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.