In today’s briefing:
- Great Eastern (GE SP): OCBC Bumps Terms – $30.15/Share Exit Offer
- Glass Half Full: Arbitrage Opportunities in Verallia’s Tender Path
- Top 30 Best Performing Stocks in KOSPI in Past Week and Surging Price of Samsung Life Insurance
- Event-Driven Optionality in ProSieben: Playing the Floor, Targeting the Upside
- Webjet Group Faces Potential Takeover Amidst Interest from BGH Capital, Helloworld, and International Giants
Great Eastern (GE SP): OCBC Bumps Terms – $30.15/Share Exit Offer
- The prior Offer for Great Eastern Holdings (GE SP) closed on the 12th July 2024, with OCBC holding 93.62%. Shares have been suspended ever since. Compulsory acquisition was not afforded.
- To break the deadlock, I mused in This Needs To Be Sorted: Great Eastern (GE SP)’s Protracted Suspension, that OCBC needed to come out with a improved Offer of ~S$30/share.
- That has now unfolded. Minorities have the option of a S$30.15/share Exit Offer; or voting for the resumption of trading, which will be possible via the issuance of bonus shares.
Glass Half Full: Arbitrage Opportunities in Verallia’s Tender Path
- BWGI’s tender offer for Verallia has secured regulatory approvals and board support. With strong financial backing and irrevocable commitments, the threshold for success is achievable but not guaranteed.
- While early entrants at €27 enjoy strong arbitrage returns, recent prices near €28.14 offer minimal spread. The current trade hinges on bump potential or long-term rerating prospects.
- Erallia trades at 6.3x EV/EBITDA vs. Vidrala’s 7.9x. The DCF fair value implies ~30% upside, making holding shares a credible strategy even if the offer fails or underwhelms.
Top 30 Best Performing Stocks in KOSPI in Past Week and Surging Price of Samsung Life Insurance
- In this insight, we also provide a list of 30 top performing stocks in KOSPI in the past one week (in terms of price performance and trading value).
- We also discuss the surging share price of Samsung Life Insurance which suggests a near-term regulation change that could require the company to partially dispose its stake in Samsung Electronics.
- With Lee Jae-Myung becoming the new South Korean President, the probability of Samsung Life Insurance being forced to sell its stake in Samsung Electronics has risen much more.
Event-Driven Optionality in ProSieben: Playing the Floor, Targeting the Upside
- Offer Period: Both PPF and MFE offers expire August 13, 2025, allowing shareholders to weigh competing bids. The synchronized deadline heightens pressure on MFE to respond or risk losing influence.
- Options Strategy: Buying the €7.10 call offers low-cost exposure to a potential bump. With breakeven at €7.26 and decent delta, it’s a tactical way to play a revised MFE bid.
- Spread Trade: A €7.10/€7.40 call spread caps risk at €0.10 and offers 3:1 reward potential. Attractive for investors expecting moderate upside without committing full premium or needing full stock exposure.
Webjet Group Faces Potential Takeover Amidst Interest from BGH Capital, Helloworld, and International Giants
- BGH Capital and Garry Weiss hold an 11% stake in WJL, acquired at A$0.80/share, and submitted a rejected offer at the same price.
- Helloworld increased its stake in WJL to 15%, purchasing shares at A$0.85 and A$0.89/share, and proposed a merger.
- WJL suspended its share buyback program amid takeover interest, and instructed advisors to explore alternative buyers.
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