In today’s briefing:
- Appen (APX AU): Telus’ 48% Premium; 10% Short Interest; Potential ASX200 Deletion
- NetEase (9999 HK): Steady Without New Games in 1Q22 and New Games in Pipeline, Buy
- UMC (UMC.US; 2303.TT): 3Q22 Order Is Full- The Demand from Asia Is Turning Weak, but US Is Stronger
- Iljin Materials: Is the Potential Change in Compulsory Tender Offer Forcing Owner to Speed Up Sale?
- BGH and Sixth Street to Lob an Offer for Pushpay?
- Penny Stock Philippine Tech Gambling Company DFNN Has First Mover Position in Fast Recovering Market
Appen (APX AU): Telus’ 48% Premium; 10% Short Interest; Potential ASX200 Deletion
- Telus International (TIXT US) has made an unsolicited, conditional and non-binding indicative proposal to acquire 100% of Appen Ltd (APX AU) at A$9.5/share, valuing the company at A$1.17bn.
- The offer is a 48% premium to the last close but a discount to longer-term VWAPs. It should require a bump for the Appen Board to unanimously recommend to shareholders.
- Appen Ltd (APX AU) is a potential deletion from the S&P/ASX 200 (AS51 INDEX) at the June rebalance. Short interest is 10% of shares out. There will be covering.
NetEase (9999 HK): Steady Without New Games in 1Q22 and New Games in Pipeline, Buy
- Total revenue grew by 15% YoY and operating margin improved YoY in 1Q22.
- The authorities began to grant licenses and new games will be launched in China and overseas.
- We set an upside of 25% and a price target at US$120. Buy.
UMC (UMC.US; 2303.TT): 3Q22 Order Is Full- The Demand from Asia Is Turning Weak, but US Is Stronger
- We believe UMC’s 3Q22 order is full, but the growth could be within 3% QoQ.
- Asian clients are turning weak, and US clients are getting stronger.
- The mainland China demand could be making an impact because of the COVID-19 pandemic.
Iljin Materials: Is the Potential Change in Compulsory Tender Offer Forcing Owner to Speed Up Sale?
- Heo Jae-Myeong, the CEO of Iljin Materials, is planning to sell his 53.3% stake in the company.
- Potential buyers of Iljin Materials include Lotte, SK, LG, and POSCO.
- The CEO Heo Jae-Myung could potentially receive greater amounts of money if he sells the company now, rather than waiting when the compulsory tender offer could be made into law.
BGH and Sixth Street to Lob an Offer for Pushpay?
- Sixth Street and BGH Capital entered into a cooperation agreement with the aim to acquire Pushpay Holdings (PPH NZ) through a scheme of arrangement. They have a combined 20.3% stake.
- In addition to Sixth Street/BGH, Pushpay also noted expressions of interest from multiple parties. The high recurring revenue, profitability and cash generation make it a target.
- As the Australian takeover premium ranges from 20% to 40%, we think that a bid of at least A$1.46 (30% takeover premium) will be necessary for due diligence access.
Penny Stock Philippine Tech Gambling Company DFNN Has First Mover Position in Fast Recovering Market
- Launched in late 2020, inPlay.ph is the first pure play online real money gambling platform aimed at attacking revenue of illegal sites.
- DFNN is also licensed for electronic gaming machines, a sports betting exchange and pari-mutuel betting for the government run Pagcor sector.
- Income from interactive tech platforms including the online gaming unit increased 116.6% for the quarter to 229.3m php.
Before it’s here, it’s on Smartkarma
