In today’s briefing:
- Infomedia (IFM AU): TPG’s Clean Deal
- Infomedia (IFM AU): TPG’s Binding Proposal at A$1.72
- Credit Corp (CCP AU) Vs. Magellan (MFG AU): Mean Reversion Beats Momentum, 19% Return
- Can Champion Iron Deliver On Growth Projects?
- CWGYF: Is Wave Energy Finally Ready For Prime Time?
Infomedia (IFM AU): TPG’s Clean Deal
- Infomedia Ltd (IFM AU), a automotive software firm, has entered into a Scheme Implementation Deed with PE-outfit TPG.
- TPG is offering A$1.72/share, a 30% premium to last close. The transaction requires FIRB signing off. The Offer has the unanimous backing of Infomedia’s boards.
- As discussed in Infomedia (IFM AU): Now A Three-Way Hunt, Infomedia fielded various indicative Offers (including TA Associates/Viburnum, Battery Ventures, and Solera) in 2022, none of which went the distance.
Infomedia (IFM AU): TPG’s Binding Proposal at A$1.72
- Infomedia Ltd (IFM AU) entered a scheme implementation deed with TPG Inc (TPG US) at A$1.72, a 30.3% premium to the undisturbed price of A$1.32 (5 August).
- The scheme is conditional on FIRB and shareholder approval. Shareholders should be supportive, given a reasonable offer and Infomedia’s history of non-binding bids.
- At the last close and for an end-of-November payment, the gross/annualised spread is 2.4%/7.5%.
Credit Corp (CCP AU) Vs. Magellan (MFG AU): Mean Reversion Beats Momentum, 19% Return
- This is a follow-up on the relative value trade between Credit Corp (CCP AU) and Magellan Financial (MFG AU), originally flagged due to a significant deviation in their price ratio.
- Highlight: Credit Corp (CCP AU) surged 16.2% post-earnings, driving the pair to close with a 19.1% return in just 7 days.
- Why Read: Demonstrates how mean-reversion setups can still outperform, even in the presence of strong momentum. A valuable Insight for relative value traders navigating trend-heavy environments.
Can Champion Iron Deliver On Growth Projects?
- Rising costs and weak pricing weighed on first quarter earnings for Champion Iron, but development projects remain on course to support growth.
- -Champion Iron’s first quarter production and earnings disappoint -Record sales, but rising costs and lower realised pricing -Capex projects on track, liquidity expected to improve -Improving balance sheet, but still sensitive to commodity prices
CWGYF: Is Wave Energy Finally Ready For Prime Time?
- Since the beginning of the Industrial Revolution, people have looked to the sea as a potential source of nearly unlimited, sustainable energy that rolls by our coasts every day in the form of wave energy.
- As early as the 19th century, inventors began devising plans to harness this energy to power early mechanical devices inside mills, water pumps, and later, even small electrical systems.
- However, despite the tantalizing appeal of this resource, wave energy has yet to be fully developed into a viable commercial alternative to mainstream renewable energy sources like wind and solar.
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