Daily Brief Industrials: TRYT , Austal Ltd, Virgin Australia Holdings, SK Inc, Porr Ag, Randstad Holding Nv, Spectris PLC, Chemring Group PLC and more

• In early February, articles suggesting the PE owner of TRYT (9164 JP) wanted to cash out. Performance post-IPO had been bad. Catching up to the IPO price would be tough.
• But a second round of bidding came about, so the stock went limit up. Then it settled in the ¥480 range for three weeks. Then started to climb. 
• Now the company and its PE firm owner have announced a sale to a new PE Firm at ¥880/share. This is below IPO Price but it will get done.

• The Hanwha Group has received approval from the US’ CFIUS to acquire up to a 100% stake in Aussie-based shipbuilding and defense firm Austal Ltd (ASB AU).
• Hanwha currently holds 9.9% and a further 9.9% via a cash settled total return swap. Apparently Hanwha had initially filed with CFIUS to approve a 19.9% stake acquisition.
• Hanwha has also applied to FIRB to lift its position to 19.9%.  It’s unlikely the local regulator would block Hanwha subsequent to CFIUS’ nod. Note: Austal “disputes” CFIUS’ approval.

• Virgin Australia Holdings (VGN AU) is looking to raise A$685m in a secondary offering, valuing the company at A$2.27bn. The stock is expected to start trading on 24 June.
• Bain Capital and management are escrowed on their shares till early 2026. There is no escrow for Qatar Airways, but they have indicated that their shareholding is strategic.
• Virgin Australia Holdings (VGN AU) could be added to the S&P/ASX 300 Index in September and there could be global index inclusions in November and December.

• TRYT (9164 JP) has recommended a tender offer from Carlyle Group / (CG US) at JPY880, a 34.6% premium to last close and a 135.3% premium to the undisturbed price.
• Despite 26.7% below the IPO price, the offer is attractive compared to peer multiples and is above the mid-point of the IFA DCF valuation range.
• The chance of a competing proposal is low, as Carlyle’s offer was the highest in the auction. EQT has provided an irrevocable (60.00% ownership ratio), which ensures a done deal.  

• In this insight, we discuss the preferred shares of five major holding companies and how the share price gap relative to their common counterparts could decrease. 
• There is a relatively easy way to improve shareholder value of these holding companies which is to cancel the entire preferred shares that trade at discount to their common counterparts.
• The common shares of these five companies have experienced an average share price appreciation of 33.2% YTD versus 28.7% appreciation for their preferred shares counterparts.

PORR Group is domiciled in Austria with a business focused on solid-margin, niche markets such as data centres, infrastructure and specialist applications. Geographically, it targets markets with strong contractor protections, reliable customers and local resources that enable it to complete projects on time and to the highest standards. Over the past 20 years, PORR has delivered a stable EBIT margin of 2.0–3.3% in all but four years and a top-line CAGR of 7.2%.

• In this edition: • Randstad Holding | CareerBuilder + Monster weighing sale of firm • PostNL | the fall of the Dutch coalition government as a potential trigger for D+3?
• • Dutch politics | VVD rules our new collaboration with Geert Wilders’ Freedom Party (PVV)

• High-Conviction setup: Advent’s £37.63/share proposal offers an 85% premium; Spectris’ board is supportive, PUSU deadline is July 7 under UK Takeover Code.
• Attractive arbitrage: current spread offers ~17.5% gross upside; limited antitrust concerns and supportive FX backdrop enhance deal certainty. Interloper risk is modest but non-zero.
• Valuation re-rating: offer implies 14.1x EV/NTM EBITDA vs. 10.1x peer median, justified by control premium, margin uplift potential, and depressed pre-deal valuation (~6.1x).

Chemring’s H125 results showcase solid momentum in a transformed defence landscape, with order intake surging 42% to £488m and the order book reaching a record £1.3bn. Revenue grew 5% y-o-y to £234.3m, while the underlying operating margin improved modestly to 11.6%. Order book strength provides 85% visibility for FY25 revenue. With EU defence spending set to rise by more than €100bn by 2027 and the UK targeting 2.5% of GDP, Chemring’s positioning in niche market areas including energetics and electronic warfare creates a potentially solid investment case for the multi-decade rearmament cycle.