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/takara-holdings-inc" target="_blank" data-smartkarma-citation="entities:11074:1" rel="noopener">Takara Holdings (2531 JP)</a> has been under pressure from activist Value Act. Friday they announced they would buy out their major listed subsidiary <a href="https://www.smartkarma.com/entities/takara-bio-inc" target="_blank" data-smartkarma-citation="entities:10766:1" rel="noopener">Takara Bio Inc (4974 JP)</a>. </li>
<li>The premium is at 43+%. That's pretty good, but the Tender Offer at ¥1,150/share is below the price at which it traded for a decade til two years ago.</li>
<li>This will almost certainly get done. By itself, it doesn't seem to be an activist bumpitrage target. </li>
</ul>



Takara Holdings (2531 JP) has been under pressure from activist Value Act. Friday they announced they would buy out their major listed subsidiary Takara Bio Inc (4974 JP). 
The premium is at 43+%. That's pretty good, but the Tender Offer at ¥1,150/share is below the price at which it traded for a decade til two years ago.
This will almost certainly get done. By itself, it doesn't seem to be an activist bumpitrage target. 


[Japan M&A] Activist-Pressured Takara Holdings (2531) Takes Out Sub Takara Bio (4974)

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/takara-holdings-inc" target="_blank" data-smartkarma-citation="entities:11074:1" rel="noopener">Takara Holdings (2531 JP)</a> has launched tender offer for the ordinary shares of <a href="https://www.smartkarma.com/entities/takara-bio-inc" target="_blank" data-smartkarma-citation="entities:10766:1" rel="noopener">Takara Bio Inc (4974 JP)</a> at the price of ¥1,150 per share to acquire all the shares.</li>
<li>Currently, Takara Holdings holds 73,350,000 shares in Takara Bio, representing a controlling ownership of 60.91%. Takara Holdings plans to make Takara Bio its wholly owned subsidiary.</li>
<li>Amid bleak outlook for the operating environment, no near-term performance improvement is expected for Takara Bio. It will be wise to tender shares in the offer.</li>
</ul>



Takara Holdings (2531 JP) has launched tender offer for the ordinary shares of Takara Bio Inc (4974 JP) at the price of ¥1,150 per share to acquire all the shares.
Currently, Takara Holdings holds 73,350,000 shares in Takara Bio, representing a controlling ownership of 60.91%. Takara Holdings plans to make Takara Bio its wholly owned subsidiary.
Amid bleak outlook for the operating environment, no near-term performance improvement is expected for Takara Bio. It will be wise to tender shares in the offer.


Takara Bio (4974 JP): Timely Tender Offer from Takara Holdings (2531 JP) To Delight Shareholders

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/takara-bio-inc" target="_blank" data-smartkarma-citation="entities:10766:1" rel="noopener">Takara Bio Inc (4974 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/takara-holdings-inc" target="_blank" data-smartkarma-citation="entities:11074:1" rel="noopener">Takara Holdings (2531 JP)</a> at JPY1,150, a 43.6% premium to the last close. </li>
<li>The offer is arguably attractive as it is above the midpoint of the IFA DCF valuation range and implies a P/B of 1.37x. </li>
<li>However, the offer is light compared to historical trading ranges and is opportunistically timed. Nevertheless, the low required tendering rate points to a done deal.</li>
</ul>



Takara Bio Inc (4974 JP) has recommended a tender offer from Takara Holdings (2531 JP) at JPY1,150, a 43.6% premium to the last close. 
The offer is arguably attractive as it is above the midpoint of the IFA DCF valuation range and implies a P/B of 1.37x. 
However, the offer is light compared to historical trading ranges and is opportunistically timed. Nevertheless, the low required tendering rate points to a done deal.


Takara Bio (4974 JP): Takara Holdings (2531 JP)’s Tender Offer Is Light but Done

Thematic (Sector/Industry)

<ul>
<li>As we are heading into 2023, let us look back on the performance of some of our global healthcare stocks recommended throughout 2022.</li>
<li>Four stocks on which I am bullish, generated more than 50% return since their recommendations. 10 stocks on which I am bearish plunged more than 20%.</li>
<li>For 2023, investors should continue to focus on established healthcare companies, having strong and flexible balance sheet with muti-year revenue visibility.</li>
</ul>


As we are heading into 2023, let us look back on the performance of some of our global healthcare stocks recommended throughout 2022.
Four stocks on which I am bullish, generated more than 50% return since their recommendations. 10 stocks on which I am bearish plunged more than 20%.
For 2023, investors should continue to focus on established healthcare companies, having strong and flexible balance sheet with muti-year revenue visibility.


2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

<ul>
<li>Over the last six months, <a href="https://www.smartkarma.com/entities/sosei-group-corp" target="_blank" data-smartkarma-citation="entities:770:1" rel="noopener">Sosei Group (4565 JP)</a> gained 37%, while <a href="https://www.smartkarma.com/entities/takara-bio-inc" target="_blank" data-smartkarma-citation="entities:10766:1" rel="noopener">Takara Bio Inc (4974 JP)</a> plunged 21%. During the same time, benchmark indices Nikkei 225 and Topix gained 1.8%.</li>
<li>Sosei is expected to continue its outperformance driven by clinical progress of the existing collaboration programs. Sosei’s strong track record of drug discovery enhances conviction on its future growth potential.</li>
<li>Takara has been on an accelerated growth path since FY21, thanks to COVID-19 testing revenue. The company will be negatively impacted by the declining demand for the COVID-19 tests.</li>
</ul>


Over the last six months, Sosei Group (4565 JP) gained 37%, while Takara Bio Inc (4974 JP) plunged 21%. During the same time, benchmark indices Nikkei 225 and Topix gained 1.8%.
Sosei is expected to continue its outperformance driven by clinical progress of the existing collaboration programs. Sosei’s strong track record of drug discovery enhances conviction on its future growth potential.
Takara has been on an accelerated growth path since FY21, thanks to COVID-19 testing revenue. The company will be negatively impacted by the declining demand for the COVID-19 tests.


Japan Healthcare: Pair Trade Ideas- Long Sosei Group (4565 JP), Short Takara Bio (4974 JP)

Japan

TAKARA BIO INC. is a biopharmaceutical company.  The Company researches and develops reagents for genome engineering and analysis, technology used for gene therapy, and natural health food products using mushrooms and seaweed body and extracts.

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Takara Bio Inc (4974 JP)

[Japan M&A] Activist-Pressured Takara Holdings (2531) Takes Out Sub Takara Bio (4974)

Takara Standard, under pressure from Value Act (who owns 15%) to Do Something, has announced a buyout of listed sub Takara Bio. This is a 43%...

Travis Lundy

Takara Bio (4974 JP): Timely Tender Offer from Takara Holdings (2531 JP) To Delight Shareholders

Takara Holdings has launched tender offer for the ordinary shares of Takara Bio at the price of ¥1,150 per share to acquire all the shares....

Tina Banerjee

Takara Bio (4974 JP): Takara Holdings (2531 JP)’s Tender Offer Is Light but Done

The offer is light compared to historical trading ranges and is opportunistically timed. Nevertheless, the low required tendering rate points to a...

Arun George

2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

From my coverage universe, two Taiwanese stocks generated 59% and 71% returns in nearly six months. New product launch and geography expansion are...

Tina Banerjee

Japan Healthcare: Pair Trade Ideas- Long Sosei Group (4565 JP), Short Takara Bio (4974 JP)

Over the last six months, Sosei shares gained 37%, while Takara Bio shares plunged 21%. No immediate reversal is expected. The performance gap...

Tina Banerjee

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