In today’s briefing:
- Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag
- StubWorld: Iljin Holdings – Discounts On Discounts
- Doosan Bobcat Block Deal Sale – Overhang Remains
Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag
- Doosan Bobcat Inc (241560 KS) aims to sell a US$145m block. Its recent price momentum is strong but past deals have shown mixed results.
- The deal doesn’t appear to be well flagged and is a relatively large one to digest, representing 20.9 days of its three month ADV.
- In this note, we will run the deal through our ECM framework and comment on other deal dynamics.
StubWorld: Iljin Holdings – Discounts On Discounts
- Iljin Holdings (015860 KS)‘s implied stub is around levels just prior to the onset of Covid, despite strong subsequent deconsolidated earnings. 50.1%-held Iljin Diamond (081000 KS) is itself heavily discounted.
- Preceding my comments on Iljin 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%.
Doosan Bobcat Block Deal Sale – Overhang Remains
- Doosan Bobcat Inc (241560 KS) announced a block deal sale of 5 million shares. representing 5% of outstanding shares.
- There are three major reasons why we have a negative view of the block deal sale and on Doosan Bobcat.
- Two of these reasons include an overhang associated with remaining shares which could be sold as well as a potential downturn in construction markets in North America and Europe.
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