In today’s briefing:
- BMPS’s Hostile Takeover Bid for Mediobanca: Strategic and Financial Implications
- Veritas Finance Pre-IPO Tearsheet
- What the Airtel-Bajaj Finance Partnership Means for Their Growth Plans?
- Financial Products Group Co (7148 JP): Q1 FY09/25 flash update
- M&A Capital Partners (6080 JP): Q1 FY09/25 flash update
- EQD | Nifty 50 Option Strategy – Implied Volatility Is Not as Rich as It Seems
- Strike (6196 JP): Q1 FY09/25 flash update
- Abrdn European Logistics Income Trust Liquidation: 23% Upside Potential Amid Asset Sales
BMPS’s Hostile Takeover Bid for Mediobanca: Strategic and Financial Implications
- Hostile Takeover Attempt: BMPS launched a €13.3B all-share bid for Mediobanca, offering a 5% premium, but Mediobanca rejected it, citing governance conflicts and strategic misalignment.
- Shareholder and Dilution Risks: BMPS shareholders face 39.3% dilution, while Delfin and Caltagirone’s post-merger 24% stake raises governance concerns, potentially sidelining smaller investors.
- The deal faces integration risks, and Mediobanca’s shareholder resistance, with BMPS’s falling stock price erasing the initial premium, making success increasingly uncertain.
Veritas Finance Pre-IPO Tearsheet
- Veritas Finance Ltd (1392490D IN) is looking to raise around US$323m in its upcoming India IPO. The bookrunners on the deal are ICICI, HDFC, Jefferies, Kotak and Nuvama.
- Veritas Finance Limited (VFL) is a retail focused non-banking finance company (NBFC) in India primarily providing loans to micro small and medium enterprises (MSMEs) and self-employed individuals.
- As per the CRISIL report, the firm was the fastest-growing NBFC in terms of AUM growth during FY22-24, growing at a CAGR of 61.76%.
What the Airtel-Bajaj Finance Partnership Means for Their Growth Plans?
- Airtel-Bajaj Finance partnership is a game-changer in the digital financial services sector in India. It combines the strengths of both companies to create a powerful platform.
- By leveraging Airtel’s extensive distribution network and Bajaj Finance’s financial expertise, this collaboration has the potential to disrupt the market and challenge established players.
- It follows the successful playbook of other global partnerships and demonstrates how digital platforms and financial institutions can work together to enhance financial accessibility
Financial Products Group Co (7148 JP): Q1 FY09/25 flash update
- In Q1 FY09/25, revenues increased by 14.6% YoY, while operating and recurring profits decreased by 7.7% and 7.4% respectively.
- The Leasing Fund Business reported a 26.5% YoY revenue decline, with a segment profit margin of 87.7%, down 1.2pp YoY.
- The International Real Estate Fund Business achieved a 356.6% YoY revenue increase, with a gross profit margin of 90.6%, up 8.5pp YoY.
M&A Capital Partners (6080 JP): Q1 FY09/25 flash update
- Revenue in Q1 FY09/25 reached JPY7.3bn, a 131.8% YoY increase, driven by higher average fees per deal.
- Operating profit and recurring profit both increased by 465.1% YoY to JPY3.3bn, with net income rising 465.7% YoY.
- The company revised its dividend policy, increasing the payout ratio target to 30%, raising FY09/25 dividends to JPY51.84.
EQD | Nifty 50 Option Strategy – Implied Volatility Is Not as Rich as It Seems
- NIFTY Index implied volatility could be seen as rich when compared to its own history and in comparison to realized volatility.
- Putting implied volatility into context with NIFTY Index market levels and trends will lead to a different conclusion. Implied volatility is not nearly as rich as conventional measures suggest.
- This Insight provides a quantitative indication at which price implied volatility can be assessed as rich, given current relative index levels.
Strike (6196 JP): Q1 FY09/25 flash update
- Revenue was JPY3.7bn (-0.3% YoY), with operating profit at JPY531mn (-60.5% YoY) and recurring profit at JPY523mn (-61.1% YoY).
- Strike closed 105 M&A deals (-0.9% YoY), with 288 new contracts (+25.2% YoY) and 1,083 contract backlogs.
- Cost of revenue increased 40.5% YoY to JPY1.8bn, while SG&A expenses rose 27.2% YoY to JPY1.3bn.
Abrdn European Logistics Income Trust Liquidation: 23% Upside Potential Amid Asset Sales
- ASLI is undergoing a managed wind-down with a 23% upside to NAV estimates, selling properties above NAV.
- Recent sales include three assets for €45m, with further large assets in due diligence, supporting NAV estimates.
- Risks include potential higher disposal costs and management incentives, but a margin of safety exists with current pricing.
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