Daily Brief Financials: UnipolSai SpA, Bitcoin, Mirae Asset Securities, Arthur J Gallagher & Co, Freshworks and more

• Unipol Gruppo S.p.A (UNI IM) offers €2.7/share to buy out UnipolSai SpA (US IM), for an implied €7.64 billion equity value, 12.6% premium, in an awaited move to simplify the group’s structure.
• If taken in full, would be worth €1,126.9 million. The share alternative is 3 UNI MI x 10 US IM, and does not account for the huge discount/NAV of Unipol.
• Gross spread is: 1.63%/21.5% (cash/share alternative respectively). Annualised return of cash offer is 7.51%. I would expect the share alternative to progressively close the discount.

• Today, we are launching our new weekly cryptocurrency note called ‘Crypto Crisp’.
• In ‘Crypto Crisp’, every Monday, we will explore the upcoming week in crypto, reflecting on the previous week’s developments.
• The aim of ‘Crypto Crisp’ is to efficiently and precisely bring you up to date with the crypto industry in just a few minute’s worth of reading time.

• It has been reported in numerous local media outlets that WeBull is discussing with the local financial authorities to enter the Korean retail stock brokerage market.
• If the Korean financial authorities provide a license to WeBull to directly provide stock brokerage services to the Korean retail market, this would be the first case ever.
• If FSC grants a full license to WeBull to operate stock brokerage services to retail investors in Korea, this could result in the local brokerages losing market shares to WeBull

Key points

• Arthur J Gallagher is a strong player in the U.S. SME broking market with fair value shares trading at $245 and 16.0x EV/2024E EBITDA
• Expected 5-year returns of around 10% IRR / 1.5x MOIC with 7.5% EBITDA growth rate, potential for higher returns with 15% IRR / 2.0x MOIC
• Insurance brokers like Arthur J Gallagher are benefiting from firm P&C pricing cycle, inflation protection, and tight labor market, providing stability and growth opportunities with focus on sustainable organic growth trends.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Freshworks had a strong fourth quarter in 2023, with revenue exceeding the high end of its financial estimates at $160.1 million.
• They significantly improved their operating efficiency, changing from using cash for operations in 2022 to generating $78 million of free cash flow in 2023.
• For the full year 2023, Freshworks finished with a revenue of $596.4 million and free cash flow margin of 13%.