Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

In a strategic review back in August, downstream fuel supplier and convenience operator <a href="https://www.smartkarma.com/entities/caltex-australia-ltd" target="_blank" data-smartkarma-citation="entities:345:1" rel="noopener">Caltex Australia (CTX AU)</a> <a href="https://www.asx.com.au/asxpdf/20190827/pdf/447wg6297n33s0.pdf" target="_blank" rel="noopener">identified</a> 500 sites it considered would match its convenience retail strategy; with a further 50 sites to be divested.
Yesterday, <a href="https://www.smartkarma.com/entities/caltex-australia-ltd" target="_blank" data-smartkarma-citation="entities:345:1" rel="noopener">Caltex Australia (CTX AU)</a> <a href="https://www.asx.com.au/asxpdf/20191125/pdf/44bwq8x7xg0cdh.pdf" target="_blank" rel="noopener">announced</a> plans for a property IPO involving 250 freehold sites of those 500 core sites previously flagged. The intention was/is to spin-off 49%, with Caltex retaining a majority interest, and entering into long-term lease agreements over each site, making annual rental payments of A$80-100mn, or a possible market cap of A$1.8bn, if using the mid-way of the rent figures and 5% yield. The transaction was/is expected to be completed in the first half of 2020. 
It turns out there were significantly more developments taking place behind the scenes. Caltex has now <a href="https://www.asx.com.au/asxpdf/20191126/pdf/44bylc73fnjmbn.pdf" target="_blank" rel="noopener">announced</a> the receipt of a US$5.8bn non-binding, indicative conditional proposal from convenience-store operator <a href="https://www.smartkarma.com/entities/alimentation-couche-tard-inc" target="_blank" data-smartkarma-citation="entities:25103:1" rel="noopener">Alimentation Couche-Tard (ATD/A CN)</a> at A$34.50/share, in cash, by way of a Scheme, less any dividends declared by Caltex.
This proposal followed an earlier indicative bid from Couche-Tard at A$32, which was rejected on the basis the price was inadequate.
Couche-Tard's Offer is subject to a number of conditions, including due diligence, securing necessary financing, MACs, FIRB and unanimous support from Caltex's board. Caltex said the IPO was not related to Couche-Tard's proposal.
The proposal is at a preliminary stage and there can be no guarantee ongoing discussion will lead to a firm Offer, but I think Caltex needs to engage here. 
As always, more below the fold.
<hr>
For more about the particulars of Australian M&amp;A, please see the <a href="https://www.smartkarma.com/insights/quiddity-australia-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:30118" rel="noopener">Quiddity Australia M&amp;A Guide 2019</a>.

In a strategic review back in August, downstream fuel supplier and convenience operator Caltex Australia (CTX AU) identified 500 sites it considered would match its convenience retail strategy; with a further 50 sites to be divested.
Yesterday, Caltex Australia (CTX AU) announced plans for a property IPO involving 250 freehold sites of those 500 core sites previously flagged. The intention was/is to spin-off 49%, with Caltex retaining a majority interest, and entering into long-term lease agreements over each site, making annual rental payments of A$80-100mn, or a possible market cap of A$1.8bn, if using the mid-way of the rent figures and 5% yield. The transaction was/is expected to be completed in the first half of 2020. 
It turns out there were significantly more developments taking place behind the scenes. Caltex has now announced the receipt of a US$5.8bn non-binding, indicative conditional proposal from convenience-store operator Alimentation Couche-Tard (ATD/A CN) at A$34.50/share, in cash, by way of a Scheme, less any dividends declared by Caltex.
This proposal followed an earlier indicative bid from Couche-Tard at A$32, which was rejected on the basis the price was inadequate.
Couche-Tard's Offer is subject to a number of conditions, including due diligence, securing necessary financing, MACs, FIRB and unanimous support from Caltex's board. Caltex said the IPO was not related to Couche-Tard's proposal.
The proposal is at a preliminary stage and there can be no guarantee ongoing discussion will lead to a firm Offer, but I think Caltex needs to engage here. 
As always, more below the fold.

For more about the particulars of Australian M&amp;A, please see the Quiddity Australia M&amp;A Guide 2019.

Caltex's Proposed Retail IPO Triggers Revised Bid From Couche-Tard

Ampol

Caltex's Proposed Retail IPO Triggers Revised Bid From Couche-Tard