In today’s briefing:
- SK Rent A Car: SK Networks’ Tender Offer
- Ventia Services Group US$450m Placement Lockup Expiry – Past Deals Have Done Well
- Quiddity Leaderboard T50/100 Sep 23: Final Expectations; AI Frenzy Fades; Wisdom Marine TDIV DEL
- Quiddity Leaderboard TDIV Sep 23: Wisdom Marine Could Underperform the Index
- Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It
- Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]
- Monthly Chinese Express Tracker | July Growth Slows | Pricing Hits Record Low | (August 2023)
- Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers
- C.H. Robinson Worldwide Inc.: 3 Catalysts Responsible For Its Growth! – Financial Forecasts
SK Rent A Car: SK Networks’ Tender Offer
- Korean car rental play SK Rent A Car (068400 KS) has announced a Tender Offer from SK Networks (001740 KS), its largest shareholder with ~76%.
- SK Rent shareholders have the option of receiving cash or SK Networks scrip. Appraisal rights are also afforded.
- The shareholder vote is a lock. The current trade is the cash offer, which is trading tight to terms.
Ventia Services Group US$450m Placement Lockup Expiry – Past Deals Have Done Well
- Ventia Services Group Pty (VNT AU)’s two largest shareholders, Apollo Global Management and CIMIC Group, will come off their placement linked lockup soon.
- The two largest shareholders together owned nearly 30% of the company and have pared their stake twice this year.
- In this note, we will talk about the likely placement and past deal performance.
Quiddity Leaderboard T50/100 Sep 23: Final Expectations; AI Frenzy Fades; Wisdom Marine TDIV DEL
- Today is the base date for the T50 and T100 Indices for the September 2023 Rebalance.
- In this insight, we take a look at the final expectations for ADDs/DELs for the T50 and T100 Indices.
- Previously, I expected five and three changes for the T50 and T100 indices, respectively, but now I see four changes for both indices.
Quiddity Leaderboard TDIV Sep 23: Wisdom Marine Could Underperform the Index
- In this insight, we take a look at Quiddity’s final flow expectations for the September 2023 index rebalance.
- In my previous insight, I revised my AUM assumption upwards but now I have revised it downwards based on the latest available data.
- Based on the latest available data, I see 47 names with positive index flow expectations and 3 names with negative index flow expectations (including the DEL Wisdom Marine).
Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It
- Multiple local news outlets reported Hanwha Ocean is undergoing a 2.5 trillion won equity increase. The official disclosure regarding this matter is expected to be released within this month.
- We have repeatedly observed a pattern of testing the waters through leaks to the local media. The case of Hanwha Ocean can also be seen in this light.
- It’s challenging to envision this magnitude being absorbed seamlessly by the market. There is a considerable likelihood that both issuers and bankers will aggressively attract inflows of arbitrage-seeking hot money.
Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]
- After the market close on 21 August, it was reported that Harim Group, Dongwon Group, LX Group, and Hapag-Lloyd have been short-listed as preliminary bidders for HMM.
- KDB and KOBC are selling 38.9% stake in HMM on a fully diluted basis. The local media have mentioned that the potential sales price could be about 5-6 trillion won.
- We continue to have a Negative view of HMM. e expect additional 20-30%+ downside risk over the next 6-12 months.
Monthly Chinese Express Tracker | July Growth Slows | Pricing Hits Record Low | (August 2023)
- Chinese express parcel volume growth was 11.7% in July, far slower than in Feb-May
- July ASP for all segments fell to 8.84 Yuan per piece, the lowest in at least ten years
- Industry leader SF Holding partly insulated from margin pressure by air, international
Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers
- Emerson Electric’s results were a major disappointment as the company failed to meet the revenue as well as the earnings expectations of Wall Street.
- The company’s focus on key growth areas, including energy transition, nearshoring, and its leading software portfolio, positions it to capture growth opportunities and drive value for its customers and stakeholders in the foreseeable future.
- The company’s pricing strategies, and solid operational performance are key factors that contributed to the exceptional results in the third quarter.
C.H. Robinson Worldwide Inc.: 3 Catalysts Responsible For Its Growth! – Financial Forecasts
- C.H.
- Robinson Worldwide delivered disappointing results as the company could not meet the revenue and earnings expectations of Wall Street.
- The company’s truckload and LTL businesses faced varying market conditions, with truckload volumes declining and LTL shipments remaining flat but declining AGP per order.
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