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

Emmerson Resources (ERM AU): Pan African Resources’ Strategically Sensible Scheme Offer

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Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/emmerson-resources-ltd" target="_blank" data-smartkarma-citation="entities:18705:1" rel="noopener">Emmerson Resources (ERM AU)</a> IE considers <a href="https://www.smartkarma.com/entities/pan-african-resources-plc" target="_blank" data-smartkarma-citation="entities:23518:1" rel="noopener">Pan African Resources (PAF LN)</a>’s offer (0.1493 PAN CDI shares per ERM share) fair and reasonable.</li>
<li>Unusually, the IE’s valuation (A$0.087 to A$0.139) is well below the undisturbed price (A$0.33), apparently due to low liquidity and to the DCF valuation not factoring in all the reserves.</li>
<li>The key condition is ERM shareholder approval. The scheme vote is low risk as the substantial shareholders will be supportive (irrevocables or high premium to their price paid).</li>
</ul>


The Emmerson Resources (ERM AU) IE considers Pan African Resources (PAF LN)’s offer (0.1493 PAN CDI shares per ERM share) fair and reasonable.
Unusually, the IE’s valuation (A$0.087 to A$0.139) is well below the undisturbed price (A$0.33), apparently due to low liquidity and to the DCF valuation not factoring in all the reserves.
The key condition is ERM shareholder approval. The scheme vote is low risk as the substantial shareholders will be supportive (irrevocables or high premium to their price paid).


Emmerson Resources (ERM AU): Scheme Vote on 15 June