IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

CAR Inc’s Conditional VGO from MBK Partners

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<p><a href="https://www.smartkarma.com/entities/car-inc" target="_blank" data-smartkarma-citation="entities:942:1" rel="noopener">Car Inc (699 HK)</a> provides car rental services, including car rentals and fleet rentals in China. On Thursday, <a href="https://in.reuters.com/article/car-inc-mbk-partners-m-a/exclusive-mbk-partners-leads-group-in-talks-to-take-hk-listed-car-inc-private-sources-idINKBN25G0KY" target="_blank" rel="noopener">a Reuters article</a> claimed that a consortium led by MBK Partners is seeking to privatise CAR at more than HK$3.10 per share. The consortium which includes Boyu Capital is said to be in talks with Beijing Automotive Group (BAIC Group). The rumoured low-end privatisation price of HK$3.10 per share is in line with the price paid by Jinggangshan BAIC (40% owned by BAIC Group) to recently acquire CAR shares from UCAR and Amber Green (pending approval). </p><div class="content-highlight"><p>At the last close price of HK$2.60 per share, the gross spread to the rumoured low-end privatisation price of HK$3.10 per share is 19%. We think there is a good chance that a privatisation bid materialises but in the event of no-bid, the downside risk is low. </p></div>

Car Inc (699 HK) provides car rental services, including car rentals and fleet rentals in China. On Thursday, a Reuters article claimed that a consortium led by MBK Partners is seeking to privatise CAR at more than HK$3.10 per share. The consortium which includes Boyu Capital is said to be in talks with Beijing Automotive Group (BAIC Group). The rumoured low-end privatisation price of HK$3.10 per share is in line with the price paid by Jinggangshan BAIC (40% owned by BAIC Group) to recently acquire CAR shares from UCAR and Amber Green (pending approval). At the last close price of HK$2.60 per share, the gross spread to the rumoured low-end privatisation price of HK$3.10 per share is 19%. We think there is a good chance that a privatisation bid materialises but in the event of no-bid, the downside risk is low. 

Car Inc

CAR Inc in a Privatisation Play?