In today’s briefing:
- Santos (STO AU): XRG Consortium’s Big Offer; Index Impact
- Near-Term Value-Up Plays in the Pipeline: Samsung Electronics & Kakao
- Merger Arb Mondays (16 June) – Mayne, Pointsbet, Fengxiang, HKBN, Seven & I, Shibaura, Smartpay
- Santos Ltd (STO AU): FIRB Approval For XRG’s Tilt Will Be No Pushover
Santos (STO AU): XRG Consortium’s Big Offer; Index Impact
- A consortium comprising ADNOC and Carlyle have offered US$5.76/share (A$8.8807/share) to take Santos Ltd (STO AU) private. That values Santos equity at A$28.8bn and an Enterprise Value of A$36bn.
- With the offer price at a premium of 28%-44% to last and VWAPs, and the Board supporting the offer, this looks like a done deal.
- Santos Ltd (STO AU) is a member of all the major S&P/ASX indices and there will be ad hoc inclusions to the indices at the time of the delisting.
Near-Term Value-Up Plays in the Pipeline: Samsung Electronics & Kakao
- Local chatter’s building that Samsung Electronics and Kakao might drop value-up disclosures by end-June to mid-July, as both cozy up to the new administration and move into its inner circle.
- Jay Lee’s surprise solo meeting with President Lee marked a turning point, signaling Samsung’s intent to step out of SK’s shadow and take the lead under the new regime.
- Value-Up details aren’t final, but Samsung’s likely to reaffirm >35% payout, while Kakao’s set to focus on ROE improvement and multiple expansion.
Merger Arb Mondays (16 June) – Mayne, Pointsbet, Fengxiang, HKBN, Seven & I, Shibaura, Smartpay
- We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: Mayne Pharma (MYX AU), Insignia Financial (IFL AU), ENN Energy (2688 HK), Smartpay Holdings (SPY NZ), Seven & I Holdings (3382 JP), Smart Share Global (EM US).
- Lowest spreads: Bright Smart Securities And (1428 HK), Avjennings Ltd (AVJ AU), Toyota Industries (6201 JP), Nippon Road (1884 JP), AEON Mall (8905 JP), Nissin Corp (9066 JP).
Santos Ltd (STO AU): FIRB Approval For XRG’s Tilt Will Be No Pushover
- Aussie O&G producer Santos Ltd (STO AU) has announced a non-binding Scheme from XRG, which comprises Abu Dhabi’s National Oil Company, Abu Dhabi Development Holding Company, and Carlyle
- The consortium is offering US$5.76 (A$8.89)/share, a 28% premium to last close. Initial Offers were pitched at US$5.04/share, followed by US$5.42/share.
- Confirmatory due diligence has been afforded. A firm bid would require a multitude of reg approvals in Australia, PNG, and the US.
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