In today’s briefing:
- FWD Group (1828 HK): Offering Details & Index Entry Timeline
- Santos (STO AU): Why FIRB Should Block ADNOC’s Takeover
- New World Resources (NWC AU): Kinterra Firms A$0.057/Share Off-Market Offer
- New World Resources (NWC AU): CAML Raises to A$0.062, Next Move Kinterra
- RLE REIT Liquidation Strategy: Potential Upside, Risks, and Market Conditions Impacting Asset Sales
- Ain’s Purchase of Kraft a Sign of More Drugstore M&A to Come
- Nanoco: Potential Upside Amidst IP Valuation and Cash Distribution Plans
- Strategic Review Highlights GSF’s Potential Upside Amidst Discounted Valuation
- Tritax Overtakes Blackstone in Warehouse REIT Showdown – Optionality Remains
FWD Group (1828 HK): Offering Details & Index Entry Timeline
- FWD Group Holdings (FWD HK) is looking to raise up to HK$3.99bn (US$508m) in its IPO, valuing the company at HK$48.82bn (US$6.22bn).
- Cornerstone investors will take up more than half the base offering and that will delay index inclusion to well into 2026.
- FWD Group Holdings (FWD HK) could be added to the HSCI Index and Southbound Stock Connect in December. That could bring some buying into the stock from mainland investors.
Santos (STO AU): Why FIRB Should Block ADNOC’s Takeover
- There is no shortage of opinions on whether FIRB will back/oppose the Santos Offer, as Australia seeks to balance attracting foreign investment with the need to protect national interests.
- The key question is how Australia benefits from Santos becoming a foreign-owned national oil/gas company? Can ADNOC accelerated/bolster existing projects/operations? Can ADNOC better negotiate native title rights for domestic supply?
- And should Australia readily sell 100% in a critical infrastructure complex; yet if the roles were reversed, foreigners are capped at 49% ownership in UAE’s similar critical assets?
New World Resources (NWC AU): Kinterra Firms A$0.057/Share Off-Market Offer
- Kinterra has now firmed an off-market Offer for at A$0.057/share for copper-play New World Resources (NWC AU). There is no minimum acceptance condition.
- Kinterra’s Bidder’s Statement will be dispatched no later than the 10th July, at which time the Offer will open. A Target statement is expected 15 days later.
- Central Asia Metals (CAML LN) has matchng rights. Expect those rights to be used.
New World Resources (NWC AU): CAML Raises to A$0.062, Next Move Kinterra
- After market close, CAML acquired a total of 253.0 million New World Resources (NWC AU) shares via off-market trades, representing 7.08% of the outstanding shares, at A$0.062 per share.
- Central Asia Metals (CAML LN)’s scheme and takeover offer has increased to A$0.062, a 12.7% premium to CAML’s previous A$0.055 offer and an 8.8% premium to Kinterra’s A$0.057 offer.
- CAML and Kinterra’s stake prevents the other from exercising compulsory acquisition rights. Despite CAML’s offer representing a 121.4% premium to the undisturbed price, there remains headroom for a bidding war.
RLE REIT Liquidation Strategy: Potential Upside, Risks, and Market Conditions Impacting Asset Sales
- RLE, a London-listed REIT, is undergoing a three-year liquidation with £122m in commercial property and £7m cash.
- The portfolio’s occupancy is 82%, with a 6.92% net initial yield and a 9% reversionary yield.
- Risks include potential delays in asset sales, cash burn, and dependence on UK real estate market recovery.
Ain’s Purchase of Kraft a Sign of More Drugstore M&A to Come
- The merger of Tsuruha and Welcia got the green light in May and will further galvanise the sector to consolidate, especially in prescriptions due to the shortage of qualified staff.
- Which is why Ain has confirmed the acquisition of Kanto-based prescription drug chains operated by Kraft.
- The move will help maintain Ain’s dominance in the dispensing pharmacy sector and encourage further M&A.
Nanoco: Potential Upside Amidst IP Valuation and Cash Distribution Plans
- Nanoco’s market cap is £19m, with £15.2m cash as of March 2025, and potential 50% upside from sale.
- The company is pursuing a sale process, reaching out to over 200 targets, with non-binding bids expected.
- Nanoco’s IP portfolio includes over 350 patents, valued at £46m on the balance sheet, with potential litigation proceeds.
Strategic Review Highlights GSF’s Potential Upside Amidst Discounted Valuation
- GSF trades at a 36% discount with an 11% yield, despite being geographically diversified and least levered among peers.
- Strategic review includes management termination fee removal, capital allocation advisement, and $80m ITC proceeds for dividends and debt repayment.
- GSF’s EBITDA is expected to exceed £40m in 2025, with a forward EV/EBITDA multiple of approximately 7x.
Tritax Overtakes Blackstone in Warehouse REIT Showdown – Optionality Remains
- Tritax’s 114.2p bid trumps Blackstone’s final 110.6p, offering shareholders equity upside, dividends, and strategic synergies.
- Blackstone may re-enter despite finality; deadline for a counter is early September.
- Shares trade above implied value, signalling expectations of a re-bid or improved offer, but spreads are tight and arb returns are fully compressed.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
The New Barbarians: AI Agent Edition and more
Unlock all research summaries