IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

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

Tatsuta Electric Wire & Cable / Event-Driven

TATSUTA ELECTRIC WIRE AND CABLE CO., LTD. manufactures wires and cables. The Company's products include power cables, optic fiber cables and its related devices, bonding wires, and water leakage detection systems.  Tatsuta Wire & Cable also produces environmentally friendly cables.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> has increased the <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> tender offer price by 8.3% to JPY780 and extended the offer period to 19 August.</li>
<li>Eneos tried to get the required acceptances by refusing to bump and subsequently extending the offer period. The tactics failed as minorities required a bump due to the market re-rating. </li>
<li>While the revised offer remains light, the token bump and deal fatigue should suffice to nudge the marginal vote to accept. At the last close, the gross/annualised spread was 5.0%/85.8%.</li>
</ul>



ENEOS Holdings (5020 JP) has increased the Tatsuta Electric Wire &amp; Cable (5809 JP) tender offer price by 8.3% to JPY780 and extended the offer period to 19 August.
Eneos tried to get the required acceptances by refusing to bump and subsequently extending the offer period. The tactics failed as minorities required a bump due to the market re-rating. 
While the revised offer remains light, the token bump and deal fatigue should suffice to nudge the marginal vote to accept. At the last close, the gross/annualised spread was 5.0%/85.8%.


Tatsuta Electric (5809 JP): Eneos Returns with a Token Bump to JPY780

Arvida Group Ltd owns and operates senior care living facilities in New Zealand.

<ul>
<li>On 22 July, <a href="https://www.smartkarma.com/entities/arvida-group-ltd" target="_blank" data-smartkarma-citation="entities:14485:1" rel="noopener">Arvida (ARV NZ)</a> entered a scheme implementation agreement with Stonepeak at NZ$1.70, a 65.0% premium to the undisturbed price.</li>
<li>The transaction will require OIO approval, statutory supervisors' consent and shareholder approval. The <a href="https://www.smartkarma.com/entities/metlifecare-ltd" target="_blank" data-smartkarma-citation="entities:19219:1" rel="noopener">Metlifecare Ltd (MET NZ)</a> precedent suggests that the OIO and statutory supervisor should be forthcoming.</li>
<li>The offer is attractive, and shareholders representing 18% of outstanding shares are supportive. At the last close and for a November payment, the gross/annualised spread was 4.9%/14.2%.  </li>
</ul>


On 22 July, Arvida (ARV NZ) entered a scheme implementation agreement with Stonepeak at NZ$1.70, a 65.0% premium to the undisturbed price.
The transaction will require OIO approval, statutory supervisors' consent and shareholder approval. The Metlifecare Ltd (MET NZ) precedent suggests that the OIO and statutory supervisor should be forthcoming.
The offer is attractive, and shareholders representing 18% of outstanding shares are supportive. At the last close and for a November payment, the gross/annualised spread was 4.9%/14.2%.  


Arvida Group (ARV NZ): Stonepeak’s Binding Proposal at NZ$1.70

CPMC Holdings Ltd. manufactures food packaging products.

<ul>
<li>On 15 July, the precondition for Changping Industrial’s HK$6.87 offer for <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC Holdings (906 HK)</a> was satisfied, but the despatch of the offer document was delayed until or before 30 July.</li>
<li>Since <a href="https://www.smartkarma.com/entities/org-technology-co-ltd-a" target="_blank" data-smartkarma-citation="entities:17510:1" rel="noopener">ORG Technology Co., Ltd. A (002701 CH)</a> announced its HK$7.21 offer on 7 June, the shares have traded above Changping Industrial's offer on all but bar one trading day</li>
<li>Changping Industrial has three options: launch at unchanged terms (low probability), match ORG’s offer (medium probability) or bump marginally higher than ORG’s offer (high probability).</li>
</ul>


On 15 July, the precondition for Changping Industrial’s HK$6.87 offer for CPMC Holdings (906 HK) was satisfied, but the despatch of the offer document was delayed until or before 30 July.
Since ORG Technology Co., Ltd. A (002701 CH) announced its HK$7.21 offer on 7 June, the shares have traded above Changping Industrial's offer on all but bar one trading day
Changping Industrial has three options: launch at unchanged terms (low probability), match ORG’s offer (medium probability) or bump marginally higher than ORG’s offer (high probability).


CPMC Holdings (906 HK): Decisions, Decisions as Changping Industrial’s Offer Set to Open

Ansarada Group Ltd operates as an AI-powered virtual data rooms and deal making company. The Company offers deals and corporate transactions, portfolio and asset management, tender life cycle management, governance risk and compliance, and post deal integration solutions. Ansarada Group serves customers worldwide.

<ul>
<li>The <a href="https://www.smartkarma.com/entities/ansarada-group-ltd" target="_blank" data-smartkarma-citation="entities:30718:1" rel="noopener">Ansarada Group Ltd (AND AU)</a> IE considers Datasite’s A$2.50 scheme offer fair and reasonable. However, the inter-conditional carve-out transaction is NOT fair but reasonable. </li>
<li>ACCC clearance (findings on 6 June) is a prerequisite for FIRB approval (scheme condition). As Datasite has a limited Australian presence, ACCC approval should be forthcoming. </li>
<li>The offer is attractive, with no vocal shareholder opposition. At the last close and for the 1 July payment, the gross/annualised spread was 2.5%/12.2%.</li>
</ul>


The Ansarada Group Ltd (AND AU) IE considers Datasite’s A$2.50 scheme offer fair and reasonable. However, the inter-conditional carve-out transaction is NOT fair but reasonable. 
ACCC clearance (findings on 6 June) is a prerequisite for FIRB approval (scheme condition). As Datasite has a limited Australian presence, ACCC approval should be forthcoming. 
The offer is attractive, with no vocal shareholder opposition. At the last close and for the 1 July payment, the gross/annualised spread was 2.5%/12.2%.


Ansarada (AND AU): Scheme Vote on 14 June

The Furukawa Battery Co., Ltd. manufactures batteries.  The Company's products are used for automobiles, home appliances, office equipment, lighting, and aerospace development.  Furukawa Battery has a sales office in Thailand.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/furukawa-battery-co-ltd" target="_blank" data-smartkarma-citation="entities:6513:1" rel="noopener">Furukawa Battery (6937 JP)</a> recommended a pre-conditional tender offer from Advantage Partners, <a href="https://www.smartkarma.com/entities/tokyo-century-corp" target="_blank" data-smartkarma-citation="entities:8053:1" rel="noopener">Tokyo Century Corp (8439 JP)</a> and <a href="https://www.smartkarma.com/entities/furukawa-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:5193:1" rel="noopener">Furukawa Electric (5801 JP)</a> consortium at JPY1,400, 22.6% premium to the undisturbed price.</li>
<li>The precondition is approval under the competition laws of Japan and Thailand. The offer is long-dated and anticipated to commence in March 2025.</li>
<li>While not a knockout bid, the required minority acceptance rate is not onerous. A long-dated offer presents a free option on a bump due to earnings upside or a counteroffer.</li>
</ul>



Furukawa Battery (6937 JP) recommended a pre-conditional tender offer from Advantage Partners, Tokyo Century Corp (8439 JP) and Furukawa Electric (5801 JP) consortium at JPY1,400, 22.6% premium to the undisturbed price.
The precondition is approval under the competition laws of Japan and Thailand. The offer is long-dated and anticipated to commence in March 2025.
While not a knockout bid, the required minority acceptance rate is not onerous. A long-dated offer presents a free option on a bump due to earnings upside or a counteroffer.


Furukawa Battery (6937 JP): Long-Dated Pre-Conditional Offer at JPY1,400

Global Equity Research Ltd
Uncompromised, Independent, Conflict-Free Research

Tatsuta Electric (5809 JP): Eneos Returns with a Token Bump to JPY780

While the revised offer remains light, the token bump and deal fatigue should suffice to nudge the marginal vote to accept. At the last close, the...

Arun George

Arvida Group (ARV NZ): Stonepeak’s Binding Proposal at NZ$1.70

The offer is attractive, and shareholders representing 18% of outstanding shares are supportive. At the last close and for a November payment, the...

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CPMC Holdings (906 HK): Decisions, Decisions as Changping Industrial’s Offer Set to Open

Changping Industrial has three options: launch at unchanged terms (low probability), match ORG’s offer (medium probability) or bump marginally...

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Ansarada (AND AU): Scheme Vote on 14 June

Datasite has received ACCC clearance for the Ansarada scheme privatisation, which is a prerequisite for FIRB approval (scheme condition). The...

Arun George

Furukawa Battery (6937 JP): Long-Dated Pre-Conditional Offer at JPY1,400

While not a knockout bid, the required minority acceptance rate is not onerous. A long-dated offer presents a free option on a bump due to earnings...

Arun George