TMT: Uniden Holdings, Tencent, My E.G. Services and more

In today’s briefing:

Uniden (6815) MBO – Cornwall Tests Market Norms By Launching a Low-Premium MBO

Uniden Holdings (6815 JP) is a ubiquitous manufacturer in its niche field of CBs, scanners, radar detectors, and marine radios. It used to be famous for cordless phones.
That was then. Manufacturing revenues dropped 90% in 20yrs, there were some weird related party transactions, an accounting scandal, and now the company is fixing itself.
And now value fund Cornwall Capital has launched an MBO at a [checks notes] 2.5% premium to last trade. This is going to be interesting.

Tencent has been actively divesting its investments (mainly in China) given the ongoing regulatory challenges faced by tech platforms in China. Moreover, macroeconomic conditions also have led to these sell-downs.
The company has explicitly mentioned that it would restructure its investment portfolio to manage risk, this includes divestments and distribution to shareholders.
The latest sell-down was Tencent (700 HK) stake in online education platform Koolearn, whose share price more-than tripled this month following its venture into livestreaming.

My E.G. Services (MYEG MK) ‘s share price is pummelled down from the reopening sentiment, although investors missed the point on this given the range of services MyEG offers.
Plenty of the upsides from the new JV in the Philippines and Indonesia are yet to contribute to the full extent due to COVID-19.
Trades at 19x PER, a deep discount to its historical highs despite stable profitability and a healthy ROE at 23%.

Before it’s here, it’s on Smartkarma