Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sumitomo-electric-industries" target="_blank" data-smartkarma-citation="entities:10496:1" rel="noopener">Sumitomo Electric Industries (5802 JP)</a> is taking over to subs through tender offers. Both are light. Both this one for <a href="https://www.smartkarma.com/entities/techno-associe-co-ltd" target="_blank" data-smartkarma-citation="entities:3893:1" rel="noopener">Techno Associe (8249 JP)</a> and <strong><a href="https://www.smartkarma.com/insights/sumitomo-electric-buys-out-sub-nissin-electric-6641-at-1-700-share-ath-but-still-too-low" target="_blank" rel="noopener">the one for Nissin Electric</a></strong>.</li>
<li>Both deals are light -slightly offensive, but in different ways. The Board decisions are more offensive than the actual prices, but it's Sumi Elec buying, so those are offensive too.</li>
<li>There's a history here. Sumi Elec went to 51% at an offensively low price (EV/EBITDA below zero) in 2019. But this is probably a done deal anyway.</li>
</ul>



Sumitomo Electric Industries (5802 JP) is taking over to subs through tender offers. Both are light. Both this one for Techno Associe (8249 JP) and the one for Nissin Electric.
Both deals are light -slightly offensive, but in different ways. The Board decisions are more offensive than the actual prices, but it's Sumi Elec buying, so those are offensive too.
There's a history here. Sumi Elec went to 51% at an offensively low price (EV/EBITDA below zero) in 2019. But this is probably a done deal anyway.


Sumitomo Elec Buys Out Sub Techno Associé) At ¥1,695/Share - Insulting Explanation. Deserves More.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sumitomo-electric-industries" target="_blank" data-smartkarma-citation="entities:10496:1" rel="noopener">Sumitomo Electric Industries (5802 JP)</a> has announced a takeover of two of its subsidiaries today. The larger one is <a href="https://www.smartkarma.com/entities/nissin-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:18567:1" rel="noopener">Nissin Electric (6641 JP)</a>. </li>
<li>This deal, done for governance purposes, hits an all-time high price. But, like others, it ignores synergies in pricing, has an inadequate premium, and process is just bad.</li>
<li>But given the shareholder structure, this is highly likely to sail through un-molested. </li>
</ul>



Sumitomo Electric Industries (5802 JP) has announced a takeover of two of its subsidiaries today. The larger one is Nissin Electric (6641 JP). 
This deal, done for governance purposes, hits an all-time high price. But, like others, it ignores synergies in pricing, has an inadequate premium, and process is just bad.
But given the shareholder structure, this is highly likely to sail through un-molested. 


Sumitomo Electric Buys Out Sub Nissin Electric (6641) At ¥1,700/Share - ATH But Still Too Low

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/techno-associe-co-ltd" target="_blank" data-smartkarma-citation="entities:3893:1" rel="noopener">Techno Associe (8249 JP)</a> has recommended <a href="https://www.smartkarma.com/entities/sumitomo-electric-industries" target="_blank" data-smartkarma-citation="entities:10496:1" rel="noopener">Sumitomo Electric Industries (5802 JP)</a>’s tender offer of JPY1,695 per share, an 36.9% premium to the undisturbed price (2 February).</li>
<li>The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.</li>
<li>The tender offer is attractive and represents an all-time share price high. This suggests a done deal. The tender offer period is from 3 February to 22 March.</li>
</ul>



Techno Associe (8249 JP) has recommended Sumitomo Electric Industries (5802 JP)’s tender offer of JPY1,695 per share, an 36.9% premium to the undisturbed price (2 February).
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
The tender offer is attractive and represents an all-time share price high. This suggests a done deal. The tender offer period is from 3 February to 22 March.


Techno Associe (8249 JP): JPY1,695 Tender Offer from Sumitomo Electric

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nissin-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:18567:1" rel="noopener">Nissin Electric (6641 JP)</a> has recommended <a href="https://www.smartkarma.com/entities/sumitomo-electric-industries" target="_blank" data-smartkarma-citation="entities:10496:1" rel="noopener">Sumitomo Electric Industries (5802 JP)</a>’s tender offer of JPY1,700 per share, an 22.7% premium to the undisturbed price (2 February).</li>
<li>The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.</li>
<li>The tender offer is attractive in comparison to peer multiples and historical price ranges. Excluding the offeror, there are no substantial shareholders. This suggests a done deal. </li>
</ul>



Nissin Electric (6641 JP) has recommended Sumitomo Electric Industries (5802 JP)’s tender offer of JPY1,700 per share, an 22.7% premium to the undisturbed price (2 February).
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
The tender offer is attractive in comparison to peer multiples and historical price ranges. Excluding the offeror, there are no substantial shareholders. This suggests a done deal. 


Nissin Electric (6641 JP): JPY1,700 Tender Offer from Sumitomo Electric

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>Global PMX is an auto parts maker in Taiwan which could be a key beneficiary of a recovery in cars ships shortage. </li>
<li>Volkswagen's CEO Herbert Diess recently mentioned that the worst of the global chip shortage may be in the rear-view mirror.</li>
<li>Our base case valuation of Global PMX is implied price of 250 TWD per share. This represents 39% higher than the current price. </li>
</ul>


Global PMX is an auto parts maker in Taiwan which could be a key beneficiary of a recovery in cars ships shortage. 
Volkswagen's CEO Herbert Diess recently mentioned that the worst of the global chip shortage may be in the rear-view mirror.
Our base case valuation of Global PMX is implied price of 250 TWD per share. This represents 39% higher than the current price. 


Global PMX - A Key Beneficiary in Taiwan of a Recovery in Cars Chips Shortage

Japan

Sumitomo Electric Industries, Ltd. manufactures electric wires, cables, and their related equipment.  The Company's products include optical fibers, wire harnesses, antennas for broadcasting stations, and electric monitoring systems.  Sumitomo Electric also produces disc brakes and antilock braking systems for automobiles and printed circuit board.

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Sumitomo Electric Industries (5802 JP)

Techno Associe (8249 JP): JPY1,695 Tender Offer from Sumitomo Electric

The tender offer is attractive and represents an all-time share price high. This suggests a done deal. The tender offer period is from 3 February...

Arun George

Nissin Electric (6641 JP): JPY1,700 Tender Offer from Sumitomo Electric

The tender offer is attractive in comparison to peer multiples and historical price ranges. Excluding the offeror, there are no substantial...

Arun George

Global PMX - A Key Beneficiary in Taiwan of a Recovery in Cars Chips Shortage

Global PMX is an auto parts maker in Taiwan which could be a key beneficiary of a recovery in cars ships shortage in 2022.

Douglas Kim

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Sumitomo Elec Buys Out Sub Techno Associé) At ¥1,695/Share - Insulting Explanation. Deserves More.

Sumitomo Electric is taking out two subs. One large-ish, one small. Both are being done at the wrong price. But Friendly Shareholders probably get...

Travis Lundy

Sumitomo Electric Buys Out Sub Nissin Electric (6641) At ¥1,700/Share - ATH But Still Too Low

Sumitomo Electric is taking out two subs. One large-ish, one small. Both are being done at the wrong price. But Friendly Shareholders probably get...

Travis Lundy

Techno Associe (8249 JP): JPY1,695 Tender Offer from Sumitomo Electric

The tender offer is attractive and represents an all-time share price high. This suggests a done deal. The tender offer period is from 3 February...

Arun George

Nissin Electric (6641 JP): JPY1,700 Tender Offer from Sumitomo Electric

The tender offer is attractive in comparison to peer multiples and historical price ranges. Excluding the offeror, there are no substantial...

Arun George

Global PMX - A Key Beneficiary in Taiwan of a Recovery in Cars Chips Shortage

Global PMX is an auto parts maker in Taiwan which could be a key beneficiary of a recovery in cars ships shortage in 2022.

Douglas Kim