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>In response to the Nikkei report, <a href="https://www.smartkarma.com/entities/scsk-corp" target="_blank" data-smartkarma-citation="entities:19996:1" rel="noopener">Scsk Corp (9719 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/sumitomo-corp" target="_blank" data-smartkarma-citation="entities:5380:1" rel="noopener">Sumitomo Corp (8053 JP)</a> at JPY5,700, a 31.5% premium to the last close.</li>
<li>The offer is attractive compared to precedent transactions, is above the midpoint of the IFA DCF valuation range and represents an all-time high. </li>
<li>An attractive offer facilitates deal completion. The tender runs from 30 October to 12 December, with payment commencing from 19 December.</li>
</ul>


In response to the Nikkei report, Scsk Corp (9719 JP) has recommended a tender offer from Sumitomo Corp (8053 JP) at JPY5,700, a 31.5% premium to the last close.
The offer is attractive compared to precedent transactions, is above the midpoint of the IFA DCF valuation range and represents an all-time high. 
An attractive offer facilitates deal completion. The tender runs from 30 October to 12 December, with payment commencing from 19 December.


SCSK Corp (9719 JP): Sumitomo (8053 JP)’s Attractive Tender Offer at JPY5,700

<ul>
<li>Today, the <a href="https://www.nikkei.com/article/DGXZQOUC291X90Z21C25A0000000/" target="_blank" rel="noopener">Nikkei reported</a> that <a href="https://www.smartkarma.com/entities/sumitomo-corp" target="_blank" data-smartkarma-citation="entities:5380:1" rel="noopener">Sumitomo Corp (8053 JP)</a> plans to privatise <a href="https://www.smartkarma.com/entities/scsk-corp" target="_blank" data-smartkarma-citation="entities:19996:1" rel="noopener">Scsk Corp (9719 JP)</a> through a tender offer. Both shares were placed on a trading halt.</li>
<li>The Nikkei states that the total acquisition cost would be around JPY800 billion, based on an arbitrary assumption that the offer will be around 20% above the undisturbed price.</li>
<li>The privatisation is strategically sensible. The rumoured offer price of JPY5,109.60 is attractive compared to peer multiples and would represent an all-time high. </li>
</ul>


Today, the Nikkei reported that Sumitomo Corp (8053 JP) plans to privatise Scsk Corp (9719 JP) through a tender offer. Both shares were placed on a trading halt.
The Nikkei states that the total acquisition cost would be around JPY800 billion, based on an arbitrary assumption that the offer will be around 20% above the undisturbed price.
The privatisation is strategically sensible. The rumoured offer price of JPY5,109.60 is attractive compared to peer multiples and would represent an all-time high. 


SCSK Corp (9719 JP): Sumitomo (8053 JP)’s Rumoured Privatisation Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ntt-data-corp" target="_blank" data-smartkarma-citation="entities:11232:1" rel="noopener">NTT Data Corp (9613 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a> at JPY4,000 per share, a 33.7% premium to the last close.</li>
<li>The Nikkei earlier reported on the offer. The offer represents an all-time high and is attractive compared to historical trading ranges, peer multiples and precedent transactions. </li>
<li>The offer could be considered light as it is below the midpoint of the target IFA’s DCF valuation range. However, the shareholder structure suggests a done deal.  </li>
</ul>



NTT Data Corp (9613 JP) has recommended a tender offer from NTT (Nippon Telegraph &amp; Telephone) (9432 JP) at JPY4,000 per share, a 33.7% premium to the last close.
The Nikkei earlier reported on the offer. The offer represents an all-time high and is attractive compared to historical trading ranges, peer multiples and precedent transactions. 
The offer could be considered light as it is below the midpoint of the target IFA’s DCF valuation range. However, the shareholder structure suggests a done deal.  


NTT DATA (9613 JP): NTT (9432 JP) Tender Offer at JPY4,000

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Japanese markets surged, with the Nikkei rising 3.2% on a weaker yen, strong earnings, and tech sector gains, while BoJ held rates steady amid cautious forecasts.</li>
<li>Japan’s economic data showed mixed trends, including falling industrial output, modest retail growth, and declining consumer confidence, raising concerns about domestic demand and labour market softness.</li>
<li>Top stock performers included Sumi Pharma, Toyota Industries, and Nidec, driven by strong earnings, privatization speculation, and bold profit and restructuring plans that lifted investor sentiment.</li>
</ul>


Japanese markets surged, with the Nikkei rising 3.2% on a weaker yen, strong earnings, and tech sector gains, while BoJ held rates steady amid cautious forecasts.
Japan’s economic data showed mixed trends, including falling industrial output, modest retail growth, and declining consumer confidence, raising concerns about domestic demand and labour market softness.
Top stock performers included Sumi Pharma, Toyota Industries, and Nidec, driven by strong earnings, privatization speculation, and bold profit and restructuring plans that lifted investor sentiment.


Japan Strategy Weekly | Seven-Day Winning Streak

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kkr-co-inc" target="_blank" data-smartkarma-citation="entities:27333:1" rel="noopener">KKR &amp; Co (KKR US)</a> has increased its <a href="https://www.smartkarma.com/entities/fuji-soft-inc" target="_blank" data-smartkarma-citation="entities:17504:1" rel="noopener">Fuji Soft Inc (9749 JP)</a> offer to JPY9,850, a 4.2% premium to the previous JPY9,451 offer and a 2.6% premium to Bain’s JPY9,600 offer.</li>
<li>A bump from KKR was expected and necessary, as the shares have consistently traded above its previous offer. Bain is scheduled to launch its competing offer this week. </li>
<li>Expect a final round of bids, as KKR's offer is not final. The shares closed above KKR's offer, which remains below the high end of the IFA DCF valuation range. </li>
</ul>



KKR &amp; Co (KKR US) has increased its Fuji Soft Inc (9749 JP) offer to JPY9,850, a 4.2% premium to the previous JPY9,451 offer and a 2.6% premium to Bain’s JPY9,600 offer.
A bump from KKR was expected and necessary, as the shares have consistently traded above its previous offer. Bain is scheduled to launch its competing offer this week. 
Expect a final round of bids, as KKR's offer is not final. The shares closed above KKR's offer, which remains below the high end of the IFA DCF valuation range. 


Fuji Soft (9749 JP): Nearing the Endgame as KKR Bumps to JPY9,850

Japan

BIPROGY Inc. offers technology services. The Company provides cloud computing and outsourcing, computer and network system sales, software development and sales, system related services, and other services. BIPROGY provides its services throughout Japan.

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BIPROGY (8056 JP)

SCSK Corp (9719 JP): Sumitomo (8053 JP)’s Attractive Tender Offer at JPY5,700

The offer is attractive compared to precedent transactions, is above the midpoint of the IFA DCF valuation range and represents an all-time high....

Arun George

SCSK Corp (9719 JP): Sumitomo (8053 JP)’s Rumoured Privatisation Offer

The privatisation is strategically sensible. The rumoured offer price of JPY5,109.60 (JPY800 billion acquisition cost) is attractive compared to...

Arun George

NTT DATA (9613 JP): NTT (9432 JP) Tender Offer at JPY4,000

While below the midpoint of the target IFA’s DCF valuation, the offer represents an all-time high and is attractive compared to historical trading...

Arun George

Japan Strategy Weekly | Seven-Day Winning Streak

Japanese markets surged on weaker yen, strong earnings, and tech gains, while BoJ held rates steady; mixed economic data raises concerns about...

Mark Chadwick

Fuji Soft (9749 JP): Nearing the Endgame as KKR Bumps to JPY9,850

The bump was required. Expect a final round of bids, as KKR's offer is not final. The shares closed above KKR's offer, which remains below the high...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SCSK Corp (9719 JP): Sumitomo (8053 JP)’s Attractive Tender Offer at JPY5,700

The offer is attractive compared to precedent transactions, is above the midpoint of the IFA DCF valuation range and represents an all-time high....

Arun George

SCSK Corp (9719 JP): Sumitomo (8053 JP)’s Rumoured Privatisation Offer

The privatisation is strategically sensible. The rumoured offer price of JPY5,109.60 (JPY800 billion acquisition cost) is attractive compared to...

Arun George

NTT DATA (9613 JP): NTT (9432 JP) Tender Offer at JPY4,000

While below the midpoint of the target IFA’s DCF valuation, the offer represents an all-time high and is attractive compared to historical trading...

Arun George

Japan Strategy Weekly | Seven-Day Winning Streak

​Japanese markets surged on weaker yen, strong earnings, and tech gains, while BoJ held rates steady; mixed economic data raises concerns about...

Mark Chadwick

Fuji Soft (9749 JP): Nearing the Endgame as KKR Bumps to JPY9,850

The bump was required. Expect a final round of bids, as KKR's offer is not final. The shares closed above KKR's offer, which remains below the high...

Arun George

Japanese markets surged on weaker yen, strong earnings, and tech gains, while BoJ held rates steady; mixed economic data raises concerns about...