Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/global-food-creators-co-ltd" target="_blank" data-smartkarma-citation="entities:20883:1" rel="noopener">Global Food Creators (7559 JP)</a> announced that the CEO would sell his 1.23% of the company into an MBO by a company he set up. </li>
<li>The family company which owns 27%, and he would fund the takeover of the other 73% with 1% equity taken from his share sale, and 99% bank loans. </li>
<li>The TOB is at 0.65x book for a cash-rich company. Liquidate the cash and the rest is being taken over at 0.33x book. Aaaaargh. </li>
</ul>


Today after the close, Global Food Creators (7559 JP) announced that the CEO would sell his 1.23% of the company into an MBO by a company he set up. 
The family company which owns 27%, and he would fund the takeover of the other 73% with 1% equity taken from his share sale, and 99% bank loans. 
The TOB is at 0.65x book for a cash-rich company. Liquidate the cash and the rest is being taken over at 0.33x book. Aaaaargh. 


Global Foods Creators (7559) - Another Stupidly Cheap MBO With Rigged DCF

Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

Equity Bottom-Up

<ul><li>The company reported revenue of JPY325.8bn (+9.9% YoY) and operating profit of JPY57.4bn (+18.4% YoY).</li><li>Effective Q1 FY03/25, the company adopted new segmentation with seven reportable segments, retroactively adjusted for Q1 FY03/24.</li><li>The company announced a quarterly dividend of JPY161 per share, raising annual dividend forecast to JPY639 per share.</li></ul>

The company reported revenue of JPY325.8bn (+9.9% YoY) and operating profit of JPY57.4bn (+18.4% YoY).Effective Q1 FY03/25, the company adopted new segmentation with seven reportable segments, retroactively adjusted for Q1 FY03/24.The company announced a quarterly dividend of JPY161 per share, raising annual dividend forecast to JPY639 per share.

Hikari Tsushin (9435 JP): 1H FY03/25 flash update, dividend payment, and dividend forecast revision

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/t-gaia-corp" target="_blank" rel="noopener">T Gaia Corp (3738 JP)</a> disclosed a Bain tender offer at JPY2,670, a 35.9% premium to the undisturbed price but a 27.2% discount to the last close.</li>
<li>Bain has set the minimum number of shares to be purchased at a 12.67% ownership ratio to appease the Board, which has a neutral recommendation. </li>
<li>Bain hopes the offer’s harsh reality check will burst the share price bubble, nudging minorities to accept. An auction process suggests that the chance of a competing offer is low.   </li>
</ul>



T Gaia Corp (3738 JP) disclosed a Bain tender offer at JPY2,670, a 35.9% premium to the undisturbed price but a 27.2% discount to the last close.
Bain has set the minimum number of shares to be purchased at a 12.67% ownership ratio to appease the Board, which has a neutral recommendation. 
Bain hopes the offer’s harsh reality check will burst the share price bubble, nudging minorities to accept. An auction process suggests that the chance of a competing offer is low.   


T-Gaia (3738 JP): Reality Check as Bain Launches a Takeunder

<ul><li>The company reported revenue of JPY146.2bn (+4.3% YoY) and operating profit of JPY27.2bn (+13.6% YoY) in Q1 FY03/25.</li><li>Effective Q1 FY03/25, the company adopted a new segmentation with seven reportable segments, retroactively adjusted for Q1 FY03/24.</li><li>Financial income was JPY35.1bn (+68.8% YoY), and the company decided to pay a quarterly dividend of JPY156 per share.</li></ul>

The company reported revenue of JPY146.2bn (+4.3% YoY) and operating profit of JPY27.2bn (+13.6% YoY) in Q1 FY03/25.Effective Q1 FY03/25, the company adopted a new segmentation with seven reportable segments, retroactively adjusted for Q1 FY03/24.Financial income was JPY35.1bn (+68.8% YoY), and the company decided to pay a quarterly dividend of JPY156 per share.

Hikari Tsushin (9435 JP): Q1 FY03/25 flash update and dividend forecast revision 

<ul>
<li>I kind of hate this, but I also can't ignore it. Apparently, an expensive media service Reporting on Deals or about the Market for Mergers, had an article today.</li>
<li>Bloomberg carried a small blurb saying there was "speculation on a tender offer.... according to traders". The stock is untraded, limit up.  </li>
<li>The most informative comment comes from Japanese stock market portal '<em>kabutan</em>' which suggests "overseas media" thinks Sumitomo Corp will sell its shares. I look at the possibilities below.</li>
</ul>


I kind of hate this, but I also can't ignore it. Apparently, an expensive media service Reporting on Deals or about the Market for Mergers, had an article today.
Bloomberg carried a small blurb saying there was "speculation on a tender offer.... according to traders". The stock is untraded, limit up.  
The most informative comment comes from Japanese stock market portal 'kabutan' which suggests "overseas media" thinks Sumitomo Corp will sell its shares. I look at the possibilities below.


T-Gaia (3738 JP) - Possible Premium Takeout Story

Japan

HIKARI TSUSHIN, INC. is a mobile telecommunication service subscription agency. The Company also operates telecommunication services stores, HIT SHOP, which sell cellular telephones, and related goods.  Hikari Tsushin also sells office automation equipment and insurance.

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Hikari Tsushin (9435 JP)

Global Foods Creators (7559) - Another Stupidly Cheap MBO With Rigged DCF

Dirt cheap very smallcap MBO. Being done at 0.65x book outright, and 0.33x ex-cash book. Simple small company making prepared foods for hotels...

Travis Lundy