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

Pepper Money (PPM AU): Challenger Reduced Offer Should Be Rejected

Weekly Deals Digest (22 Mar) - VOYAH, Dongfeng, MCJ, Itochu Shokuhin, Insignia, Pepper Money, IJM

Merger Arb Mondays (23 Mar) - Qube, Pepper, Bluescope, Skyworth, ENN, Makino, Sankei Real, MCJ, IJM

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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

<ul>
<li>In response to an AFR article, <a href="https://www.smartkarma.com/entities/pepper-money-ltd-australia" target="_blank" data-smartkarma-citation="entities:24157:1" rel="noopener">Pepper Money (PPM AU)</a> disclosed a non-binding scheme proposal from <a href="https://www.smartkarma.com/entities/challenger-ltd" target="_blank" data-smartkarma-citation="entities:16870:1" rel="noopener">Challenger Ltd (CGF AU)</a> under which Challenger and KKR will jointly acquire Pepper. </li>
<li>The offer is at A$2.60, a 47.7% premium to the undisturbed price of A$1.76 and a 15.0% premium to the last close. The Board has granted due diligence access. </li>
<li>The NBIO is attractive compared to peer multiples and historical trading ranges. The presence of KKR (the largest shareholder) in the consortium suggests a high probability of a binding proposal.</li>
</ul>


In response to an AFR article, Pepper Money (PPM AU) disclosed a non-binding scheme proposal from Challenger Ltd (CGF AU) under which Challenger and KKR will jointly acquire Pepper. 
The offer is at A$2.60, a 47.7% premium to the undisturbed price of A$1.76 and a 15.0% premium to the last close. The Board has granted due diligence access. 
The NBIO is attractive compared to peer multiples and historical trading ranges. The presence of KKR (the largest shareholder) in the consortium suggests a high probability of a binding proposal.


Pepper Money (PPM AU): Challenger and KKR’s Attractive NBIO