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

Canvest Environmental Protection Group / Event-Driven

<ul>
<li>We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.</li>
<li>Highest spreads: <a href="https://www.smartkarma.com/entities/i-pex-inc" target="_blank" data-smartkarma-citation="entities:12587:1" rel="noopener">I-PEX (6640 JP)</a>, <a href="https://www.smartkarma.com/entities/lac-co-ltd" target="_blank" data-smartkarma-citation="entities:8480:1" rel="noopener">Lac Co Ltd (3857 JP),</a><a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>, <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a>, <a href="https://www.smartkarma.com/entities/get-nice-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:29667:1" rel="noopener">Get Nice Financial Group Ltd (1469 HK)</a>. </li>
<li>Lowest spreads: <a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks &amp; System Integr (1973 JP)</a>, <a href="https://www.smartkarma.com/entities/net-one-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:1279:1" rel="noopener">Net One Systems (7518 JP)</a>, <a href="https://www.smartkarma.com/entities/platinum-asset-management" target="_blank" data-smartkarma-citation="entities:914:1" rel="noopener">Platinum Asset Management (PTM AU)</a>, <a href="https://www.smartkarma.com/entities/t-gaia-corp" target="_blank" data-smartkarma-citation="entities:8339:1" rel="noopener">T Gaia Corp (3738 JP)</a>, <a href="https://www.smartkarma.com/entities/elematec-corp" target="_blank" data-smartkarma-citation="entities:2866:1" rel="noopener">Elematec Corp (2715 JP)</a>. </li>
</ul>


We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: I-PEX (6640 JP), Lac Co Ltd (3857 JP),Seven &amp; I Holdings (3382 JP), Shanghai Henlius Biotech (2696 HK), Get Nice Financial Group Ltd (1469 HK). 
Lowest spreads: Nec Networks &amp; System Integr (1973 JP), Net One Systems (7518 JP), Platinum Asset Management (PTM AU), T Gaia Corp (3738 JP), Elematec Corp (2715 JP). 


Merger Arb Mondays (11 Nov) - Canvest, Get Nice, I-PEX, LAC, I'rom, Net One, Fuji Soft, NEC Networks

<ul>
<li>A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.</li>
<li>ECM developments: <a href="https://www.smartkarma.com/entities/bundl-technologies-private-limited-swiggy" target="_blank" data-smartkarma-citation="entities:35630:1" rel="noopener">Swiggy (1255298D IN)</a> aims to raise up to US$1.4 billion through an IPO at a price range of Rs371-390.</li>
<li>Event-Driven developments: <a href="https://www.smartkarma.com/entities/fujitec-co-ltd" target="_blank" data-smartkarma-citation="entities:11686:1" rel="noopener">Fujitec Co Ltd (6406 JP)</a>, <a href="https://www.smartkarma.com/entities/i-pex-inc" target="_blank" data-smartkarma-citation="entities:12587:1" rel="noopener">I-PEX (6640 JP)</a>, <a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks &amp; System Integr (1973 JP)</a>, <a href="https://www.smartkarma.com/entities/net-one-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:1279:1" rel="noopener">Net One Systems (7518 JP)</a>, <a href="https://www.smartkarma.com/entities/lac-co-ltd" target="_blank" data-smartkarma-citation="entities:8480:1" rel="noopener">Lac Co Ltd (3857 JP)</a>, Get Nice. </li>
</ul>


A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Swiggy (1255298D IN) aims to raise up to US$1.4 billion through an IPO at a price range of Rs371-390.
Event-Driven developments: Fujitec Co Ltd (6406 JP), I-PEX (6640 JP), Nec Networks &amp; System Integr (1973 JP), Net One Systems (7518 JP), Lac Co Ltd (3857 JP), Get Nice. 


Weekly Deals Digest (10 Nov) - Fujitec, I-PEX, NEC Networks, Net One, LAC, Get Nice, Swiggy

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lac-co-ltd" target="_blank" data-smartkarma-citation="entities:8480:1" rel="noopener">Lac Co Ltd (3857 JP)</a> has recommended a pre-conditional tender offer from <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI Corp (9433 JP)</a> at JPY1,160, a 55.5% premium to the last close. </li>
<li>The pre-condition relates to an exception based on the provisions of the Financial Instruments and Exchange Law. The offer is anticipated to commence in late November. </li>
<li>While the offer is attractive compared to historical trading ranges, it is below the midpoint of the IFA DCF valuation range. Nevertheless, the required minority acceptance rate is achievable.    </li>
</ul>



Lac Co Ltd (3857 JP) has recommended a pre-conditional tender offer from KDDI Corp (9433 JP) at JPY1,160, a 55.5% premium to the last close. 
The pre-condition relates to an exception based on the provisions of the Financial Instruments and Exchange Law. The offer is anticipated to commence in late November. 
While the offer is attractive compared to historical trading ranges, it is below the midpoint of the IFA DCF valuation range. Nevertheless, the required minority acceptance rate is achievable.    


LAC (3857 JP): KDDI (9433 JP)’s Pre-Conditional Tender Offer at JPY1,160

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>13mos ago we saw a sea change. Toyota Group started the process of cross-holding unwinds. They've moved quickly. LOTS of unwinding and so far nearly ¥2trln in buybacks announced.</li>
<li>Aisin, Toyota, and Toyota Industries (TIC) sold Denso first. Then Denso sales of TIC and Renesas, then Aisin, then Exedy, now TIC is selling the rest of its Denso.</li>
<li>Denso announced lower guidance and an overwhelming buyback - as much as liquidity would allow - to offset TIC and non-life sellers. Reading between the lines, there are interesting details.</li>
</ul>


13mos ago we saw a sea change. Toyota Group started the process of cross-holding unwinds. They've moved quickly. LOTS of unwinding and so far nearly ¥2trln in buybacks announced.
Aisin, Toyota, and Toyota Industries (TIC) sold Denso first. Then Denso sales of TIC and Renesas, then Aisin, then Exedy, now TIC is selling the rest of its Denso.
Denso announced lower guidance and an overwhelming buyback - as much as liquidity would allow - to offset TIC and non-life sellers. Reading between the lines, there are interesting details.


Toyota Group Musical Shares - Toyota Industries' (6201) Big Multi-Year Denso (6902) Selldown & More

Derivatives and Quantitative Strategist

Gaudenz Schneider

Quantitative Analysis

<ul>
<li>The five-year data on past Bank of Japan interest rate decisions suggests that realized <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> volatility tends to slightly and temporarily increase after a rate decision announcement.</li>
<li>Investors might make use of this observation by adjusting the timing of directional trades around rate decisions or by using options.</li>
<li>With monetary policy expected to become more active in the next months, its effect on volatility might grow.</li>
</ul>


The five-year data on past Bank of Japan interest rate decisions suggests that realized Nikkei 225 (NKY INDEX) volatility tends to slightly and temporarily increase after a rate decision announcement.
Investors might make use of this observation by adjusting the timing of directional trades around rate decisions or by using options.
With monetary policy expected to become more active in the next months, its effect on volatility might grow.


EQD | Nikkei 225 Realized Volatility Following Rate Decisions

Japan

KDDI CORPORATION provides mobile communication services and sells mobile devices.  The Company also is a broadband provider.

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KDDI Corp (9433 JP)

Merger Arb Mondays (11 Nov) - Canvest, Get Nice, I-PEX, LAC, I'rom, Net One, Fuji Soft, NEC Networks

This week, the highest gross spreads are I-PEX (47.6%), LAC (29.5%), Seven & I (25.1%), Henlius (17.1%), Get Nice Financial (14.5%), Canvest...

Arun George

Weekly Deals Digest (10 Nov) - Fujitec, I-PEX, NEC Networks, Net One, LAC, Get Nice, Swiggy

Last week, notable developments occurred in Event-Driven (Fujitec, I-PEX, NEC Networks, Net One, LAC, Get Nice) and ECM (Swiggy).

Arun George

LAC (3857 JP): KDDI (9433 JP)’s Pre-Conditional Tender Offer at JPY1,160

While the offer is attractive compared to historical trading ranges, it is below the midpoint of the IFA DCF valuation range. Nevertheless, the...

Arun George

Toyota Group Musical Shares - Toyota Industries' (6201) Big Multi-Year Denso (6902) Selldown & More

Toyota Group cross-holding unwinds are more than ¥1trln already and buybacks are close to ¥2trln since The Aisin Announcement. Today, TIC sells,...

Travis Lundy

EQD | Nikkei 225 Realized Volatility Following Rate Decisions

Data shows that Nikkei 225 volatility tends to rise after Bank of Japan rate decisions, suggesting potential trading strategies for investors as...

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Merger Arb Mondays (11 Nov) - Canvest, Get Nice, I-PEX, LAC, I'rom, Net One, Fuji Soft, NEC Networks

This week, the highest gross spreads are I-PEX (47.6%), LAC (29.5%), Seven & I (25.1%), Henlius (17.1%), Get Nice Financial (14.5%), Canvest...

Arun George

Weekly Deals Digest (10 Nov) - Fujitec, I-PEX, NEC Networks, Net One, LAC, Get Nice, Swiggy

Last week, notable developments occurred in Event-Driven (Fujitec, I-PEX, NEC Networks, Net One, LAC, Get Nice) and ECM (Swiggy).

Arun George

LAC (3857 JP): KDDI (9433 JP)’s Pre-Conditional Tender Offer at JPY1,160

While the offer is attractive compared to historical trading ranges, it is below the midpoint of the IFA DCF valuation range. Nevertheless, the...

Arun George

Toyota Group Musical Shares - Toyota Industries' (6201) Big Multi-Year Denso (6902) Selldown & More

Toyota Group cross-holding unwinds are more than ¥1trln already and buybacks are close to ¥2trln since The Aisin Announcement. Today, TIC sells,...

Travis Lundy

EQD | Nikkei 225 Realized Volatility Following Rate Decisions

​Data shows that Nikkei 225 volatility tends to rise after Bank of Japan rate decisions, suggesting potential trading strategies for investors as...

Gaudenz Schneider

Data shows that Nikkei 225 volatility tends to rise after Bank of Japan rate decisions, suggesting potential trading strategies for investors as...