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  • The Avanti Group Advice Clients On Alibaba IPO

    The Avanti Group is advising clients on Alibaba Holding Ltd as discussions continue regarding the company's IPO listing currently in dispute over retaining control of China's largest e commerce company that could see the highly anticipated IPO of Alibaba Holding Ltd move its listing to the United States.

    The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor's attention to what may see China's largest e-commerce company listing for initial public offering outside of Hong Kong due to listing restrictions.

    As the markets have watched on patiently, talks designed to list the largest of China's e commerce companies, Alibaba on the Hong Kong Stock exchange may have fallen through over dispute over control to list different classes of shares. The company, which has seen in recent months valuations of between $105 and S120 billion dollars, was earmarked to be the former British colony's largest IPO since 2010.

    Alibaba's valuation makes it the third largest internet based company in the world after Google and Amazon, estimated to have been capable of raising as much as $12 billion in its floatation in Hong Kong. This would have been an exceedingly modest level given the company's expected operating profit of $7.1 billion in 2014. The company already accounts for 70% of all package deliveries in China valued at $163 billion last year.

    "It really has come down to one crucial sticking point, Hong Kong doesn't allow dual voting class shares on listing and without this the company's founder Jack Ma and his partners would be unable to control board nominations with their small number of shares, subsequently losing control of what they've built. The U.S however does allow such listings to take place and this is what would seem to be the reason for the change in venue," said Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    Alibaba's rise to the third largest internet company in the world has been fueled by the unprecedented growth of China's internet usage base, some 591 million and increasing. This has seen what started as a one man's business operating out of an apartment in 1999 expanding to employ over 24,000 workers and give its founder an estimated net worth of $3.7 billion, making him one of the richest men in China.

    "While this breakdown in talks and any subsequent changes to the IPO listing may be in accordance with the best outcomes for the founder and his partners, it may end up being far more beneficial to the company as a whole to have a U.S listing. E-commerce and internet based IPO's have been doing very well in the U.S over the last few years and a lot of Western investors may simply see this as more accessible than one based in Hong Kong, whilst the Asian investor will follow the desirable share holding, we shall continue to advice our clients and investors as the situation develops," concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.

    Oct 07 10:36 PM | Link | Comment!
  • The Avanti Group Advise Clients On Jarden Purchase

    The Avanti Group is advising clients on Jarden Corp as the retail brand manager adds to its repertoire, candle manufacturer and retailer Yankee Candle.

    The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor's attention to what has been described as an opportunistic purchase by Jarden Corp, acquiring brand name scented candle maker and retailer Yankee Candle for $1.75 billion. The deal is reportedly a straight cash transaction between Jarden and the fund that owns Yankee, managed by Madison Dearborn Partners LLC, which acquired Yankee in 2007 for $1.4 billion.

    "As a product line it makes sense for Jarden to acquire Yankee as their sales and supply network are both well established and performing rather well. For Yankee it gives a greater sense of stability when your owner is retailing such a diverse range of products. Furthermore, it gives Yankee automatic access to Jarden's international retail supply chain, which of course brings enhanced opportunity for expansion," said Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    The deal comes to fruition at a opportune time for the two companies, with both experiencing solid growth in earning and vigorous expansion of their retail presence. Yankee who also manufactures potpourri and home décor saw its sales rise 7.4 percent last year to $844.2 million as it expanded its retail supply points to 35,000 locations in North America. Many analysts believe that Yankee will make a good fit under the Jarden umbrella, which also holds brands such as Mr. Coffee and Health o meter products.

    Shareholders of both companies saw the markets react positively to news of the deal with Jarden Corp shares rising 10 percent to $47.43 in the largest single day move for the company since 2009. This brings the company's gains for the year to 38 percent, far out performing the S&P 500's 15 percent gains. Shareholders of both Yankee and Madison Dearborn are expected to reap benefits totaling $550 million.

    "This is a very positive example of how the market rewards what it sees as a good fit in a combined business model. Both sides should be greatly benefited in cost savings and expanded supply infrastructure across the spectrum of their operations. In the short term, shareholders have been well rewarded and we would expect continuing good results and solid performance from the Jarden corporation umbrella. We will continue to monitor and advise our clients on developments affecting current and future holdings in both companies," concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.

    Sep 28 2:18 AM | Link | Comment!
  • The Avanti Group Advise Clients On Apache Deal

    The Avanti Group is advising clients on opportunities in Apache Corporation, after the troubled oil and gas company agrees to sell a significant stake of its Egyptian operations to Sinopec.

    The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor's attention to developing news within the Apache Corporation.

    Shareholders in Houston based Apache Corp, have seen welcome news with the entry of the giant Chinese oil company China Petrochemical Corp. (Sinopec) into the fray, Apache has spent a turbulent year in which it has struggled to divest itself of assets in attempts to raise $4 billion to put toward key restructuring projects. The Sinopec deal will see the company acquire its much-needed cash yet retain profitable revenue streams in the joint venture with China's largest oil refiner.

    The deal will see Sinopec, which has seen profits surge after its cost cutting and own restructuring drive, buy a 33 percent stake in Apache's Egyptian oil and gas operations for $3.1 billion. It is expected that the day-to-day business model will be managed as a joint concern between the two companies, something that Sinopec has done with other large stake holdings in resource providers.

    "There had been a lot of concern for the final outcome of Apache's efforts, not so much as to whether or not they would raise the required funds and achieve their restructure goals, but more on the question of how much the company would have to lose in assets. There were a lot of sharks in the water, but this deal with Sinopec has put them firmly back on dry land again," commented Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    The position in Apache's Egyptian operation has been a profitable ongoing concern since its inception and has remained untroubled by political events in the country over recent years. Production figures for 2012 show that the fields provided 100'000 barrels of oil and 354 million cubic feet of natural gas per day with figures expected to increase further with planned infrastructure additions.

    "Sinopec has a well-earned reputation for bringing long-term and profitable strategy to its joint ventures, between this and their own commanding performance in China this year they have given a well need stamp of confidence to Apache and the market has taken note. Sinopec does not make rash decisions, they fully expect their concerns to increase in value and have proven themselves repeatedly.

    We are closely monitoring this sector and advising our clients appropriately as to best place their current positions," concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.

    Sep 15 8:46 PM | Link | Comment!
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