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

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

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-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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aeon-mall-co-ltd" target="_blank" data-smartkarma-citation="entities:5262:1" rel="noopener">AEON Mall (8905 JP)</a> announced a share exchange offer by <a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">Aeon Co Ltd (8267 JP)</a> at 0.65 Aeon shares per Aeon Mall share, a 30.9% premium to the undisturbed price.</li>
<li>The share exchange ratio is reasonable compared to historical price ratios and IFA valuation ranges. The implied offer multiple is attractive compared to peer multiples.</li>
<li>Aeon’s 58.16% shareholding ensures that Aeon Mall's vote on 22 May is low-risk. The share exchange's effective date is 1 July.</li>
</ul>



AEON Mall (8905 JP) announced a share exchange offer by Aeon Co Ltd (8267 JP) at 0.65 Aeon shares per Aeon Mall share, a 30.9% premium to the undisturbed price.
The share exchange ratio is reasonable compared to historical price ratios and IFA valuation ranges. The implied offer multiple is attractive compared to peer multiples.
Aeon’s 58.16% shareholding ensures that Aeon Mall's vote on 22 May is low-risk. The share exchange's effective date is 1 July.


Aeon Mall (8905 JP): Aeon (8267 JP)’s Share Exchange Ratio Is Set

Japan

DAIWA HOUSE INDUSTRY CO., LTD. designs and builds residential, commercial, and institutional buildings.  The Company constructs single-family houses, collective housings, condominiums, stores, office buildings, factories, and hospitals. DAIWA HOUSE INDUSTRY also operates real estate businesses. The Company, through its subsidiaries, manages hotels and golf country clubs.

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Daiwa House Industry (1925 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

[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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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

[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

Aeon Mall (8905 JP): Aeon (8267 JP)’s Share Exchange Ratio Is Set

The share exchange ratio is reasonable compared to historical price ratios and IFA valuation ranges. Aeon’s 58.16% shareholding ensures that Aeon...

Arun George