Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>A week has passed since Bain Capital first announced a tender offer of Echo Marketing whose share price has risen 49% since then.</li>
<li>With regards to Echo Marketing CEO Kim acting as a white knight in the management dispute of Hojeon, there is no rush for him to stage a massive M&amp;A fight.</li>
<li>Post tender offer, a more realistic scenario is for Bain Capital to acquire close to 70% to 80% of total outstanding shares in Echo Marketing.</li>
</ul>


A week has passed since Bain Capital first announced a tender offer of Echo Marketing whose share price has risen 49% since then.
With regards to Echo Marketing CEO Kim acting as a white knight in the management dispute of Hojeon, there is no rush for him to stage a massive M&amp;A fight.
Post tender offer, a more realistic scenario is for Bain Capital to acquire close to 70% to 80% of total outstanding shares in Echo Marketing.


Tender Offer of Echo Marketing & Risk of CEO Kim Acting As White Knight in Mgmt Dispute of Hojeon

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Buy dips on the possibility that 3DIP would not agree to Bain. Otherwise, at ¥9,000 <a href="https://www.smartkarma.com/entities/fuji-soft-inc" target="_blank" data-smartkarma-citation="entities:17504:1" rel="noopener">Fuji Soft (9749 JP)</a> is a buy, and at ¥9,500, it's probably a sell near-term.</li>
<li>Drilling down into its balance sheet uncovers additional value for <a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a>; but not enough to move the needle</li>
<li>
<a href="https://www.smartkarma.com/entities/exedy-corp" target="_blank" data-smartkarma-citation="entities:6516:1" rel="noopener">Exedy Corp (7278 JP)</a> completed its buyback. Murakami Group bought more. The stock (pro-forma) is at 0.62x book, 0.54x book for the non-cash portion. There's LOTS of cash left.</li>
</ul>


Buy dips on the possibility that 3DIP would not agree to Bain. Otherwise, at ¥9,000 Fuji Soft (9749 JP) is a buy, and at ¥9,500, it's probably a sell near-term.
Drilling down into its balance sheet uncovers additional value for Jardine Matheson Holdings (JM SP); but not enough to move the needle

Exedy Corp (7278 JP) completed its buyback. Murakami Group bought more. The stock (pro-forma) is at 0.62x book, 0.54x book for the non-cash portion. There's LOTS of cash left.


Last Week in Event SPACE: Fuji Soft, Jardine Matheson, Exedy, Henderson

<ul>
<li>A group of minority investors started to go activist on Hojeon (111110 KS), demanding that the company increase its treasury share buybacks/cancellations, dividends, and cut CEO's salary.</li>
<li>This coalition of minority investors has threatened to sell their shares to a competitor (Hansae) if the company does not abide by their demands.</li>
<li>Hojeon has attractive valuations and are trading at low multiples. It had P/E of 5x, EV/EBITDA of 3.4x, and P/B of 0.5x in 2023.</li>
</ul>


A group of minority investors started to go activist on Hojeon (111110 KS), demanding that the company increase its treasury share buybacks/cancellations, dividends, and cut CEO's salary.
This coalition of minority investors has threatened to sell their shares to a competitor (Hansae) if the company does not abide by their demands.
Hojeon has attractive valuations and are trading at low multiples. It had P/E of 5x, EV/EBITDA of 3.4x, and P/B of 0.5x in 2023.


Hojeon: Activist Minority Investors Threaten to Sell Their Shares to a Competitor in a Block Deal

South Korea

Hojeon Ltd. manufactures sportswear through Original Equipment Manufacturing (OEM) system for multi-national sports brands, such as Nike, Adidas and Under Armour.

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Hojeon (111110 KS)

Tender Offer of Echo Marketing & Risk of CEO Kim Acting As White Knight in Mgmt Dispute of Hojeon

With regards to Echo Marketing CEO Kim acting as a white knight in the management dispute of Hojeon, there is no rush for him to stage a massive...

Douglas Kim

Last Week in Event SPACE: Fuji Soft, Jardine Matheson, Exedy, Henderson

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Hojeon: Activist Minority Investors Threaten to Sell Their Shares to a Competitor in a Block Deal

A group of minority investors started to go activist on Hojeon and this coalition has threatened to sell their shares to a competitor in a block...

Douglas Kim

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