Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Thematic (Sector/Industry)

Surprisingly, NHN Entertainment (which was spun off from Naver in 2013) made USD40m investment in Ticket Monster (one of the three major social commerce companies in Korea along with the famous Coupang and WeMakePrice). In return of this investment, NHN Entertainment is believed to receive slightly less than 3 percent equity in Ticket Monster.Earlier this year, Ticket Monster publicly announced its plan of USD300m fundraising in a bid to compete more effectively against Softbank-backed Coupang…

Surprisingly, NHN Entertainment (which was spun off from Naver in 2013) made USD40m investment in Ticket Monster (one of the three major social commerce companies in Korea along with the famous Coupang and WeMakePrice). In return of this investment, NHN Entertainment is believed to receive slightly less than 3 percent equity in Ticket Monster.Earlier this year, Ticket Monster publicly announced its plan of USD300m fundraising in a bid to compete more effectively against Softbank-backed Coupang…

NHN Entertainment Invests in Ticket Monster - Implications for Softbank and Softbank-Backed Coupang

Transport Sector, China and Asia-focused Research

Charles De Trenck

My updates back in December to reiterate the negative in containers (and bulk) and anticipated a weak 2016, to be sure. But in recent weeks it appears the market has gotten even weaker. I am sure our friends from Drewry have experienced this as well. A few key details below on rates that have gone even further south than 2009.In recent weeks we understand from friends that some markets in Intra-Asia have gone into negative pricing.This means that lines have to try to recoup some of their losses…

My updates back in December to reiterate the negative in containers (and bulk) and anticipated a weak 2016, to be sure. But in recent weeks it appears the market has gotten even weaker. I am sure our friends from Drewry have experienced this as well. A few key details below on rates that have gone even further south than 2009.In recent weeks we understand from friends that some markets in Intra-Asia have gone into negative pricing.This means that lines have to try to recoup some of their losses…

Container Shipping Industry Last Few Weeks Factoring in Doomsday

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

<ul>
<li>Following yesterday's Nikkei report, <a href="https://www.smartkarma.com/entities/nippon-sheet-glass-co-ltd" target="_blank" data-smartkarma-citation="entities:9013:1" rel="noopener">Nippon Sheet Glass (5202 JP)</a> outlined its restructuring plan to create a new NSG group. The minority cash-out price is JPY500. </li>
<li>The third-party allotment to Apollo and the share consolidation require shareholder approval of the special resolutions at the late June AGM. The transaction will be completed in late November.</li>
<li>While the offer is light, the vote should pass. The offer resulted from a market check, and without it, there is a non-negligible risk that the equity will be worthless. </li>
</ul>


Following yesterday's Nikkei report, Nippon Sheet Glass (5202 JP) outlined its restructuring plan to create a new NSG group. The minority cash-out price is JPY500. 
The third-party allotment to Apollo and the share consolidation require shareholder approval of the special resolutions at the late June AGM. The transaction will be completed in late November.
While the offer is light, the vote should pass. The offer resulted from a market check, and without it, there is a non-negligible risk that the equity will be worthless. 


Nippon Sheet Glass (5202 JP): The Cash-Out Offer Is a Bittersweet Bailout

<ul>
<li>Nikkei <a href="https://asia.nikkei.com/business/business-deals/japan-s-nsg-seeks-support-from-fund-as-m-a-loan-deadline-nears" target="_blank" rel="noopener">reported</a> that <a href="https://www.smartkarma.com/entities/nippon-sheet-glass-co-ltd" target="_blank" data-smartkarma-citation="entities:9013:1" rel="noopener">Nippon Sheet Glass (5202 JP)</a> has been considering restructuring through delisting, following the receipt of over JPY300 billion in support from Apollo and a consortium of banks.</li>
<li>Post-Restructuring, NSG’s net debt/EBITDA ratio will decline materially. NSG will delist through a squeeze-out of existing shareholders at JPY500 per share, a 23.5% premium to the last close. </li>
<li>The squeeze-out price is low, below adjusted book value and recent highs. However, the EGM vote will pass, as post-restructuring, Apollo/banks will own more than two-thirds of voting rights.  </li>
</ul>


Nikkei reported that Nippon Sheet Glass (5202 JP) has been considering restructuring through delisting, following the receipt of over JPY300 billion in support from Apollo and a consortium of banks.
Post-Restructuring, NSG’s net debt/EBITDA ratio will decline materially. NSG will delist through a squeeze-out of existing shareholders at JPY500 per share, a 23.5% premium to the last close. 
The squeeze-out price is low, below adjusted book value and recent highs. However, the EGM vote will pass, as post-restructuring, Apollo/banks will own more than two-thirds of voting rights.  


Nippon Sheet Glass (5202 JP): Rumoured Restructuring and Squeeze-Out at JPY500

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>There are 39 adds/34 deletes for the JPX Nikkei 400 Index to bring the number of index constituents back to 400. There are stocks with multiple days ADV to trade.</li>
<li>Based on the adds, deletes and capping changes, we estimate one way turnover of 6.7% and a round-trip trade of JPY 946bn (US$6.4bn).</li>
<li>The adds have outperformed the deletes over the last year and there has been a move higher in the last few days too.</li>
</ul>


There are 39 adds/34 deletes for the JPX Nikkei 400 Index to bring the number of index constituents back to 400. There are stocks with multiple days ADV to trade.
Based on the adds, deletes and capping changes, we estimate one way turnover of 6.7% and a round-trip trade of JPY 946bn (US$6.4bn).
The adds have outperformed the deletes over the last year and there has been a move higher in the last few days too.


JPX Nikkei 400 Index Rebalance: US$6.4bn Round-Trip Trade Coming Up

Japan

AGC Inc manufactures and sells a variety of glass products. Main products include glass for construction, glass for liquid crystal display(LCD), and glass for automobiles.  The Company also produces electronic parts, fine chemicals, and new ceramics.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

AGC Inc (5201 JP)

NHN Entertainment Invests in Ticket Monster - Implications for Softbank and Softbank-Backed Coupang

Surprisingly, NHN Entertainment (which was spun off from Naver in 2013) made USD40m investment in Ticket Monster (one of the three major social...

Sanghyun Park

Container Shipping Industry Last Few Weeks Factoring in Doomsday

My updates back in December to reiterate the negative in containers (and bulk) and anticipated a weak 2016, to be sure. But in recent weeks it...

Charles De Trenck

Nippon Sheet Glass (5202 JP): The Cash-Out Offer Is a Bittersweet Bailout

While the offer is light, the vote should pass. The offer resulted from a market check, and without it, there is a non-negligible risk that the...

Arun George

Nippon Sheet Glass (5202 JP): Rumoured Restructuring and Squeeze-Out at JPY500

The rumoured restructuring eases the debt burden. While the squeeze-out price is light, the EGM vote will pass, as post-restructuring, Apollo/banks...

Arun George

JPX Nikkei 400 Index Rebalance: US$6.4bn Round-Trip Trade Coming Up

There are 39 adds/34 deletes for the JPX Nikkei 400 Index resulting in a one-way turnover of 6.7% and a round-trip trade of JPY 946bn (US$6.4bn)....

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)