Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back in July 2022, Aussie renewable energy player <a href="https://www.smartkarma.com/entities/genex-power-ltd" target="_blank" data-smartkarma-citation="entities:29079:1" rel="noopener">Genex (GNX AU)</a> announced an A$0.23/share NBIO from Skip Enterprises and Stonepeak, subsequently bumped to A$0.25/share, and confirmatory due diligence provided.</li>
<li>Negotiations <a href="https://announcements.asx.com.au/asxpdf/20221228/pdf/45k724cgztnf80.pdf" target="_blank" rel="noopener">ceased</a> in December that year.  As of today, Scott Farquhar's Skip Enterprises continues to hold a 19.9% stake in Genex. </li>
<li>This morning, Genex <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02780585-2A1509187" target="_blank" rel="noopener">announced</a> an A$0.275/share NBIO from <a href="https://www.smartkarma.com/entities/electric-power-development-c" target="_blank" data-smartkarma-citation="entities:292:1" rel="noopener">Electric Power Development (9513 JP)</a> (J-Power), by way of a Scheme. A concurrent off-market A$0.27/share is in place.</li>
</ul>


Back in July 2022, Aussie renewable energy player Genex (GNX AU) announced an A$0.23/share NBIO from Skip Enterprises and Stonepeak, subsequently bumped to A$0.25/share, and confirmatory due diligence provided.
Negotiations ceased in December that year.  As of today, Scott Farquhar's Skip Enterprises continues to hold a 19.9% stake in Genex. 
This morning, Genex announced an A$0.275/share NBIO from Electric Power Development (9513 JP) (J-Power), by way of a Scheme. A concurrent off-market A$0.27/share is in place.


Genex (GNX AU): J-Power's Indicative Offer

Travis Lundy

<ul>
<li>On 13 December, <a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a> suitor YFO issued a press release which was not to the liking of Toyo Construction. A day later, Toyo Construction offered its <a href="https://www.toyo-const.co.jp/wp/wp-content/uploads/2022/12/20221214.pdf" target="_blank" rel="noopener">own</a>.</li>
<li>YFO responded on the 21st, saying ToyoKen's PR was inaccurate. Not quite a week after that, ToyoKen announced one tiny subsidiary(<a href="http://www.tecos.co.jp/" target="_blank" rel="noopener">Tecos</a>) would absorb another (portable toilet rental co <a href="https://www.orieco.co.jp/company" target="_blank" rel="noopener">Orient Ecology</a>).</li>
<li>Synergies? None. Growth? None. Scale? Nope. Was this for some other reason investors need to worry about? Maybe.</li>
</ul>


On 13 December, Toyo Construction (1890 JP) suitor YFO issued a press release which was not to the liking of Toyo Construction. A day later, Toyo Construction offered its own.
YFO responded on the 21st, saying ToyoKen's PR was inaccurate. Not quite a week after that, ToyoKen announced one tiny subsidiary(Tecos) would absorb another (portable toilet rental co Orient Ecology).
Synergies? None. Growth? None. Scale? Nope. Was this for some other reason investors need to worry about? Maybe.


Toyo Construction (1890) Investors/Traders Beware

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Electric Power Development C / Equity Bottom-Up

<ul>
<li>Operating under the brand name J-Power, <a href="https://www.smartkarma.com/entities/electric-power-development-c" target="_blank" data-smartkarma-citation="entities:292:1" rel="noopener">Electric Power Development C (9513 JP)</a> is leading Japan’s efforts to make carbon dioxide-free electricity by 2050.</li>
<li>The company’s investments in gasification and carbon dioxide separation technology and carbon dioxide-free hydrogen generation from coal are close to commercialisation.</li>
<li>With the technology to serve other power producers to develop their own environmentally-friendly power projects, J-Power could turn into a global-leader in the power generation space in the next decade.</li>
</ul>


Operating under the brand name J-Power, Electric Power Development C (9513 JP) is leading Japan’s efforts to make carbon dioxide-free electricity by 2050.
The company’s investments in gasification and carbon dioxide separation technology and carbon dioxide-free hydrogen generation from coal are close to commercialisation.
With the technology to serve other power producers to develop their own environmentally-friendly power projects, J-Power could turn into a global-leader in the power generation space in the next decade.


2023 High Conviction: J-Power Stands Out As Japan Goes Carbon Neutral

<ul>
<li>On the 25 July, renewable energy play <a href="https://www.smartkarma.com/entities/genex-power-ltd" target="_blank" data-smartkarma-citation="entities:29079:1" rel="noopener">Genex Power Ltd (GNX AU)</a>  <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02544773-2A1386667?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> a non-binding indicative proposal from Atlassian's Scott Farquhar and Stonepeak, by way of a Scheme, at A$0.23/share.  </li>
<li>Genex subsequently <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02548222-2A1388020?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">rejected</a> the proposal less than a week later on the grounds the Offer undervalued the company.  </li>
<li>Farquhar, via Skip Essential Infrastructure Fund, and Stonepeak have increased their non-binding proposal to A$0.25/share. Genex has now provided confirmatory due diligence.</li>
</ul>


On the 25 July, renewable energy play Genex Power Ltd (GNX AU)  announced a non-binding indicative proposal from Atlassian's Scott Farquhar and Stonepeak, by way of a Scheme, at A$0.23/share.  
Genex subsequently rejected the proposal less than a week later on the grounds the Offer undervalued the company.  
Farquhar, via Skip Essential Infrastructure Fund, and Stonepeak have increased their non-binding proposal to A$0.25/share. Genex has now provided confirmatory due diligence.


Genex Opens Its Books After Farquhar Bumps

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/genex-power-ltd" target="_blank" data-smartkarma-citation="entities:29079:1" rel="noopener">Genex Power Ltd (GNX AU)</a> received an improved non-binding offer from Skip Capital/Stonepeak at A$0.25 per share, an 8.7% bump from the previously rejected A$0.23 offer.</li>
<li>The headcount test is emerging as a key risk as retail shareholders are voicing their displeasure. The offer is underwhelming based on precedent transactions and average sell-side price targets. </li>
<li>The Board hopes that granting non-exclusive due diligence and stating an intention to recommend a binding A$0.25 offer will force rival bidders to kickstart an auction.    </li>
</ul>



Genex Power Ltd (GNX AU) received an improved non-binding offer from Skip Capital/Stonepeak at A$0.25 per share, an 8.7% bump from the previously rejected A$0.23 offer.
The headcount test is emerging as a key risk as retail shareholders are voicing their displeasure. The offer is underwhelming based on precedent transactions and average sell-side price targets. 
The Board hopes that granting non-exclusive due diligence and stating an intention to recommend a binding A$0.25 offer will force rival bidders to kickstart an auction.    


Genex Gets an Improved A$0.25 Offer, Headcount Test a Risk, Board Hoping for an Auction

Japan

Electric Power Development Co.,Ltd. generates, transmits, distributes, and sells electric power using hydroelectric, wind-power, nuclear, coal-fired and other thermal power stations throughout Japan.

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

Electric Power Development C (9513 JP)

Genex (GNX AU): J-Power's Indicative Offer

Trading at a gross/annualised spread of 8%/23.5% - for the off-market Offer - assuming late July completion. IF YOU ARE AN ARBITRAGEUR, I might get...

David Blennerhassett

Toyo Construction (1890) Investors/Traders Beware

Toyo Construction is in mild limbo. ToyoKen has threatened legal action against YFO while "continuing" to sincerely discuss the thing which in fact...

Travis Lundy

2023 High Conviction: J-Power Stands Out As Japan Goes Carbon Neutral

With the technology to serve other power producers to develop their own environmentally-friendly power projects, J-Power could turn into a global...

Oshadhi Kumarasiri

Genex Opens Its Books After Farquhar Bumps

Trading around a 8.7% gross spread to the indicative Offer. This is a buy here. But this is not a super liquid arb situation.

David Blennerhassett

Genex Gets an Improved A$0.25 Offer, Headcount Test a Risk, Board Hoping for an Auction

Maintain holding or buy with the view of a potential rival bid or that the risk of the headcount test forces Skip/Stonepeak to further bump their...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)