In today’s briefing:
- JD.com (9618 HK) Announces TWO Spin-Offs (That Were Always Going To Be Spinoffs)
- Concentrix/Webhelp: A Good Deal for GBL
- DB Hitek: KCGI Goes Activist & A Potential Inclusion in MSCI Korea Standard Index in 2023
JD.com (9618 HK) Announces TWO Spin-Offs (That Were Always Going To Be Spinoffs)
- Two days ago, media reported Alibaba Group (9988 HK) / Alibaba (ADR) (BABA US) would split and possibly list several businesses. Last night Cainiao was reported as starting listing preparations.
- Last night, JD.com Inc. (9618 HK) made two announcements it was proposing to spin off and list its JD Property and JD Industrial arms. This is NOT a spinoff war.
- JD raised Series A and B for both companies. These were always going to be spins, like Health, Digits, and Logistics. JD Properties will be biggish.
Concentrix/Webhelp: A Good Deal for GBL
- Concentrix has signed a deal to merge with Webhelp (unlisted) in a cash and shares deal worth roughly $4.8 billion, including net debt. Webhelp is 59.15% owned by GBL.
- GBL obtains €1,787 million (vs. €1,721 million last valuation). GBL doesn’t miss on a good deal, even momentarily reversing the trend of increasing share of private assets in portfolio.
- The discount, albeit recently tightening, stays at a high level, 36.9%, despite the good deal and higher portfolio visibility and cash holdings.
DB Hitek: KCGI Goes Activist & A Potential Inclusion in MSCI Korea Standard Index in 2023
- It was announced on 30 March that a local activist firm called KCGI has invested 7.05% stake in DB Hitek, spending 196.4 billion won on buying this amount.
- KCGI mentioned that DB Hitek’s corporate value is extremely undervalued that the company should cancel its treasury shares and establish independent Board of Directors.
- The probability of DB Hitek being included in MSCI Korea Standard could rise materially if its market cap climbs to more than 4 trillion won in the coming weeks.
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