Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>I tally 43 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma.</li>
<li>Six new deal was discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/aub-group-limited" target="_blank" data-smartkarma-citation="entities:11179:1" rel="noopener">AUB  (AUB AU)</a>, <a href="https://www.smartkarma.com/entities/ane-cayman-inc" target="_blank" data-smartkarma-citation="entities:35025:1" rel="noopener">ANE (9956 HK)</a>, <a href="https://www.smartkarma.com/entities/scsk-corp" target="_blank" data-smartkarma-citation="entities:19996:1" rel="noopener">SCSK (9719 JP)</a>, <a href="https://www.smartkarma.com/entities/brainpad-inc" target="_blank" data-smartkarma-citation="entities:11499:1" rel="noopener">Brainpad (3655 JP)</a>, <a href="https://www.smartkarma.com/entities/sumitomo-riko-company-ltd" target="_blank" data-smartkarma-citation="entities:14955:1" rel="noopener">Sumitomo Riko (5191 JP)</a>, and <a href="https://www.smartkarma.com/entities/sumitomo-densetsu-co-ltd" target="_blank" data-smartkarma-citation="entities:1530:1" rel="noopener">Sumitomo Densetsu (1949 JP)</a>.</li>
<li>Key updates/news also took place on: <a href="https://www.smartkarma.com/entities/humm-group" target="_blank" data-smartkarma-citation="entities:35366:1" rel="noopener">Humm Group (HUM AU)</a>, <a href="https://www.smartkarma.com/entities/oneconnect-financial-technology-co-ltd-2e580cf8-6a65-4148-ac1e-f9a8a167856a" target="_blank" data-smartkarma-citation="entities:36656:1" rel="noopener">Oneconnect Financial Technology (6638 HK)</a>, <a href="https://www.smartkarma.com/entities/hang-seng-bank-ltd" target="_blank" data-smartkarma-citation="entities:24:1" rel="noopener">Hang Seng Bank (11 HK)</a>, <a href="https://www.smartkarma.com/entities/ashimori-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:13918:1" rel="noopener">Ashimori Industry (3526 JP)</a>, <a href="https://www.smartkarma.com/entities/restaurant-brands-nz-ltd" target="_blank" data-smartkarma-citation="entities:11891:1" rel="noopener">Restaurant Brands NZ (RBD NZ)</a>. </li>
</ul>


I tally 43 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma.
Six new deal was discussed on Smartkarma this week: AUB  (AUB AU), ANE (9956 HK), SCSK (9719 JP), Brainpad (3655 JP), Sumitomo Riko (5191 JP), and Sumitomo Densetsu (1949 JP).
Key updates/news also took place on: Humm Group (HUM AU), Oneconnect Financial Technology (6638 HK), Hang Seng Bank (11 HK), Ashimori Industry (3526 JP), Restaurant Brands NZ (RBD NZ). 


Mostly) Asia-Pac M&A: SCSK Corp, AUB, Brainpad, ANE Cayman, Sumitomo Densetsu, Sumitomo Densetsu

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/sumitomo-riko-company-ltd" target="_blank" data-smartkarma-citation="entities:14955:1" rel="noopener">Sumitomo Riko Company (5191 JP)</a> has recommended a tender offer from <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> at JPY2,600, a 20.6% premium to the undisturbed price.</li>
<li>The offer is arguably attractive as it is above the midpoint of the special committee/target IFA DCF valuation range and represents an all-time high. </li>
<li>The offer is light as it implies a discount to peer multiples. However, the significant cross-holders on the register suggest that the minimum tendering condition should be met. </li>
</ul>



Sumitomo Riko Company (5191 JP) has recommended a tender offer from Sumitomo Electric Industries (5802 JP) at JPY2,600, a 20.6% premium to the undisturbed price.
The offer is arguably attractive as it is above the midpoint of the special committee/target IFA DCF valuation range and represents an all-time high. 
The offer is light as it implies a discount to peer multiples. However, the significant cross-holders on the register suggest that the minimum tendering condition should be met. 


Sumitomo Riko (5191 JP): Sumitomo Electric (5802 JP)’s Tender Offer Is Light but Likely Done

Travis Lundy

<ul>
<li>Today partway through the day, <a href="https://www.smartkarma.com/entities/daiwa-house-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:237:1" rel="noopener">Daiwa House Industry (1925 JP)</a>, <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>, and <a href="https://www.smartkarma.com/entities/sumitomo-densetsu-co-ltd" target="_blank" data-smartkarma-citation="entities:1530:1" rel="noopener">Sumitomo Densetsu (1949 JP)</a> announced Daiwa House would buy out Sumitomo Densetsu for ¥9,760/share. </li>
<li>Sumitomo Electric will sell its stake to the company ¥6,877/share. Minorities get 11.9x Mar26 EBITDA. The Bidder is buying at 9.9x. </li>
<li>At an ATH, and a nice premium, and 3x book, this looks like a pretty good takeout price. Daiwa House has plans for it.</li>
</ul>


Today partway through the day, Daiwa House Industry (1925 JP), Sumitomo Electric Industries (5802 JP), and Sumitomo Densetsu (1949 JP) announced Daiwa House would buy out Sumitomo Densetsu for ¥9,760/share. 
Sumitomo Electric will sell its stake to the company ¥6,877/share. Minorities get 11.9x Mar26 EBITDA. The Bidder is buying at 9.9x. 
At an ATH, and a nice premium, and 3x book, this looks like a pretty good takeout price. Daiwa House has plans for it.


[Japan M&A] Daiwa House Buyout of Sumitomo Densetsu (1949 JP) At ¥9,760 - A Good Exit

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sumitomo-densetsu-co-ltd" target="_blank" data-smartkarma-citation="entities:1530:1" rel="noopener">Sumitomo Densetsu (1949 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/daiwa-house-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:237:1" rel="noopener">Daiwa House Industry (1925 JP)</a> at JPY9,760, a 28.1% premium to the undisturbed price.</li>
<li>The process is deficient due to the lack of an auction and the offeror's reliance on less than 100% voter turnout to pass the EGM share consolidation vote.</li>
<li>Nevertheless, the offer is attractive, as it represents an all-time high and is above the high end of the IFA DCF valuation range. </li>
</ul>



Sumitomo Densetsu (1949 JP) has recommended a tender offer from Daiwa House Industry (1925 JP) at JPY9,760, a 28.1% premium to the undisturbed price.
The process is deficient due to the lack of an auction and the offeror's reliance on less than 100% voter turnout to pass the EGM share consolidation vote.
Nevertheless, the offer is attractive, as it represents an all-time high and is above the high end of the IFA DCF valuation range. 


Sumitomo Densetsu (1949 JP): Daiwa House Industry (1925 JP)’s Attractive Tender Offer at JPY9,760

<ul>
<li>Today with the earnings announcement, <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> announced it would buy out minorities in <a href="https://www.smartkarma.com/entities/sumitomo-riko-company-ltd" target="_blank" data-smartkarma-citation="entities:14955:1" rel="noopener">Sumitomo Riko Company (5191 JP)</a>, its rubber products subsidiary. </li>
<li>The price is low, and especially so when one considers the significant net receivables and inventory number (about 2mos of revenue, but one turn of annual EBITDA).</li>
<li>Crossholders and insiders, however, own nearly 15% of the company, and that makes blocking this deal difficult, despite its low price, and lack of synergies considered in the price.</li>
</ul>


Today with the earnings announcement, Sumitomo Electric Industries (5802 JP) announced it would buy out minorities in Sumitomo Riko Company (5191 JP), its rubber products subsidiary. 
The price is low, and especially so when one considers the significant net receivables and inventory number (about 2mos of revenue, but one turn of annual EBITDA).
Crossholders and insiders, however, own nearly 15% of the company, and that makes blocking this deal difficult, despite its low price, and lack of synergies considered in the price.


[Japan M&A] Sumi Elec Buys Out Minorities in Sumitomo Riko (5191 JP) For ¥2,600 - Low Price/Multiple

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)

Mostly) Asia-Pac M&A: SCSK Corp, AUB, Brainpad, ANE Cayman, Sumitomo Densetsu, Sumitomo Densetsu

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Sumitomo Riko (5191 JP): Sumitomo Electric (5802 JP)’s Tender Offer Is Light but Likely Done

The offer is light as it implies a discount to peer multiples. However, the significant cross-holders on the register suggest that the minimum...

Arun George

[Japan M&A] Daiwa House Buyout of Sumitomo Densetsu (1949 JP) At ¥9,760 - A Good Exit

Daiwa House has agreed with parent Sumitomo Elec to buy out electrical construction firm Sumitomo Densetsu at ¥9,760. Sumi Elec will get 30% less....

Travis Lundy

Sumitomo Densetsu (1949 JP): Daiwa House Industry (1925 JP)’s Attractive Tender Offer at JPY9,760

Despite a deficient process, the offer is attractive, as it represents an all-time high and is above the high end of the IFA DCF valuation range.

Arun George

[Japan M&A] Sumi Elec Buys Out Minorities in Sumitomo Riko (5191 JP) For ¥2,600 - Low Price/Multiple

Sumitomo Electric announced it would buy out minorities in automotive rubber products subsidiary Sumitomo Riko today. The price is pretty light,...

Travis Lundy

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