In today’s briefing:
- StubWorld: Geely Is (Mostly) Trading “Rich”; And May Still Bump Zeekr Terms
- Korea Zinc Announces Cancellation of Its Treasury Shares
- Aadhar Housing Finance IPO Lockup – PE Owner Is up 5.6x, with US$800m Lockup Expiry Soon
- Webjet (WJL AU): Undisclosed Buyer Buying
- Wanda Hotel Development’s Asset Sale: Potential Upside and Key Risks Analyzed
- Domain Holdings (DHG AU): CoStar’s A$4.43 Binding Proposal a Done Deal
- AVJennings (AVJ AU): Scheme Vote on 11 July
StubWorld: Geely Is (Mostly) Trading “Rich”; And May Still Bump Zeekr Terms
- Geely Auto (175 HK)‘s discount to NAV is less than half its 12-month average. And Geely is generally trading tighter to listed PRC auto peers.
- Preceding my comments on Geely – and NTT Data Corp (9613 JP) – are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Korea Zinc Announces Cancellation of Its Treasury Shares
- Korea Zinc (010130 KS)’s chairman Choi Yoon-Beom announced that the company will cancel all 2.04 million treasury shares that the company acquired through a tender offer last year.
- Now the company has finally decided to cancel all of the treasury shares this year, this should have a positive impact on its share price.
- Korea Zinc announced better than expected earnings in 1Q25. Korea Zinc achieved more than 3.5-fold increase in sales in the strategic minerals sector, including antimony, indium, and bismuth in 1Q25.
Aadhar Housing Finance IPO Lockup – PE Owner Is up 5.6x, with US$800m Lockup Expiry Soon
- Aadhar Housing Finance raised around US$360m in its India IPO in May 2024, via selling a mix of primary and secondary shares. Its IPO lockup is set to expire soon
- AHF is focused on the low income housing segments (ticket size less than INR1.5m) in India. It offers a range of mortgage-related loan products.
- In this note, we will talk about the lockup dynamics and possible placement.
Webjet (WJL AU): Undisclosed Buyer Buying
- On the 30th September 2024, B2C-player Webjet Group (WJL AU) demerged from (now) B2B-player WEB Travel Group (WEB AU). This was discussed in Thoughts On Webjet (WEB AU)’s Demerger.
- Webjet is up 34% this week, on decent volume. The word on the street is that an undisclosed buyer with ~5% was seeking to add an additional 5% (19.6mn shares).
- Webjet announced after market yesterday it had became aware of such a buyer. That’s all the information at hand.
Wanda Hotel Development’s Asset Sale: Potential Upside and Key Risks Analyzed
- Wanda Hotel Development plans to sell hotel management operations to Tongcheng Travel for HK$2.4bn, exceeding its market cap.
- WHD intends to return most sale proceeds to shareholders, retaining some for working capital and future investments.
- WHD retains valuable real estate assets, including Chicago condos and a Guilin shopping mall, with potential additional sales.
Domain Holdings (DHG AU): CoStar’s A$4.43 Binding Proposal a Done Deal
- Domain Holdings Australia (DHG AU) entered a scheme implementation deed with Costar Group (CSGP US) at A$4.43 per share, a 42.0% premium to the undisturbed price.
- As CoStar is a US entity, FIRB approval should be forthcoming. The scheme vote is low-risk, as Nine (60.05% of outstanding shares) will vote in favour of it.
- While attractive to precedent transaction multiples, the offer remains light compared to peer multiples. At the last close and for an end-of-August payment, the gross/annualised spread is 1.1%/3.6%.
AVJennings (AVJ AU): Scheme Vote on 11 July
- The Avjennings Ltd (AVJ AU) IE considers AVID’s A$0.655 offer fair and reasonable as it is above its A$0.54-0.61 valuation range.
- The offer is conditional on shareholder and regulatory approvals (FIRB and OIO). The vote is low-risk, as SC Global (54.02% of outstanding shares) will vote in favour.
- The attractive offer represents a 98.5% premium to the undisturbed price. At the last close and for a 14 August payment, the gross/annualised spread is 0.8%/2.8%.
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
Unlock all research summaries