Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>I tally 35 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.</li>
<li>Two new deals were was discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/ingenia-communities-group" target="_blank" data-smartkarma-citation="entities:5495:1" rel="noopener">Ingenia Communities (INA AU)</a>, <a href="https://www.smartkarma.com/entities/albis-co-ltd" target="_blank" data-smartkarma-citation="entities:16344:1" rel="noopener">Albis Co Ltd (7475 JP)</a>, and <a href="https://www.smartkarma.com/entities/sharingtechnology-inc" target="_blank" data-smartkarma-citation="entities:26948:1" rel="noopener">Sharingtechnology Inc (3989 JP)</a>.</li>
<li>Key updates/news also took place on:<a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com Inc (2371 JP)</a>, <a href="https://www.smartkarma.com/entities/zenith-minerals-ltd" target="_blank" data-smartkarma-citation="entities:3234:1" rel="noopener">Zenith Minerals (ZNC AU)</a>, and <a href="https://www.smartkarma.com/entities/cygnus-metals-limited" target="_blank" data-smartkarma-citation="entities:30504:1" rel="noopener">Cygnus Metals (CY5 AU)</a>.</li>
</ul>


I tally 35 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
Two new deals were was discussed on Smartkarma this week: Ingenia Communities (INA AU), Albis Co Ltd (7475 JP), and Sharingtechnology Inc (3989 JP).
Key updates/news also took place on:Kakaku.com Inc (2371 JP), Zenith Minerals (ZNC AU), and Cygnus Metals (CY5 AU).


Asia-Pac Weekly Wrap: Kakaku, Ingenia Communities, Albis, Sharingtechnology, Cygnus Metals

Travis Lundy

<ul>
<li>On Thursday - the last day of the EQT/DG/Kamgras Tender Offer to take <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com Inc (2371 JP)</a> private, the Tender Offeror lifted their Offer Price to ¥3,680.</li>
<li>This clearly surpasses the higher-priced version of the Bain Tender Offer which was based on ¥3,520 (¥3,640 if KDDI agreed). Bain had neglected to overbid when EQT re-underbid by 1.96%.</li>
<li>As always, Kakaku's release is more informative than EQT's. There is obvious reason in the document to expect more.</li>
</ul>


On Thursday - the last day of the EQT/DG/Kamgras Tender Offer to take Kakaku.com Inc (2371 JP) private, the Tender Offeror lifted their Offer Price to ¥3,680.
This clearly surpasses the higher-priced version of the Bain Tender Offer which was based on ¥3,520 (¥3,640 if KDDI agreed). Bain had neglected to overbid when EQT re-underbid by 1.96%.
As always, Kakaku's release is more informative than EQT's. There is obvious reason in the document to expect more.


[Japan M&A] EQT Bump Response from Kakaku.com Gives Hope for More From Bain

<ul>
<li>Today, on the last day of the earlier bump to ¥3,571 by EQT/DG, which was bumped from ¥3,570 (when shares were trading ¥3,700) and extended, EQT bumped/extended to ¥3,680/share. </li>
<li>This is, of course, a bit more than 1% higher than the existing Bain best bid and the level Oasis had set as a minimum - ¥3,640. </li>
<li>EQT tried to get Oasis to sign on but they did not agree. They are waiting for Bain's overbid I expect. This now puts the floor at ¥3,680. </li>
</ul>


Today, on the last day of the earlier bump to ¥3,571 by EQT/DG, which was bumped from ¥3,570 (when shares were trading ¥3,700) and extended, EQT bumped/extended to ¥3,680/share. 
This is, of course, a bit more than 1% higher than the existing Bain best bid and the level Oasis had set as a minimum - ¥3,640. 
EQT tried to get Oasis to sign on but they did not agree. They are waiting for Bain's overbid I expect. This now puts the floor at ¥3,680. 


[Japan M&A] EQT Bumps Kakaku Bid to ¥3,680 - Through Bain's Bid - Means Bain Bid Likely Soon

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>EQT/<a href="https://www.smartkarma.com/entities/digital-garage-inc" target="_blank" data-smartkarma-citation="entities:13747:1" rel="noopener">Digital Garage (4819 JP)</a> revised its <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com Inc (2371 JP)</a> offer to JPY3,680, a 3.1% premium to the previous JPY3,571 offer and a 4.5% premium to Bain/LY’s JPY3,520 base offer. </li>
<li>Bain/<a href="https://www.smartkarma.com/entities/ly-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">LY (4689 JP)</a>’s "wait and let EQT/DG fail" play has been undercut as it marks the first time that EQT/DG has exceeded Bain/LY’s conditional offer (KDDI agrees to share buyback). </li>
<li>While the buyout economics have eroded, Bain/LY is likely to return with one final revised offer (possibly a base offer of JPY3,754 and a conditional offer of JPY3,880).</li>
</ul>


EQT/Digital Garage (4819 JP) revised its Kakaku.com Inc (2371 JP) offer to JPY3,680, a 3.1% premium to the previous JPY3,571 offer and a 4.5% premium to Bain/LY’s JPY3,520 base offer. 
Bain/LY (4689 JP)’s "wait and let EQT/DG fail" play has been undercut as it marks the first time that EQT/DG has exceeded Bain/LY’s conditional offer (KDDI agrees to share buyback). 
While the buyout economics have eroded, Bain/LY is likely to return with one final revised offer (possibly a base offer of JPY3,754 and a conditional offer of JPY3,880).


Kakaku.com (2371 JP): No Messing Around as EQT/DG Goes with a JPY3,680 Offer

<ul>
<li>EQT is the incumbent underbidder while Bain's bid is just under 2% higher than EQT's ¥3,570 at ¥3,640. Bain refused to overbid for now. It is still waiting for approvals. </li>
<li>EQT's ¥3,570 bid wasn't enough when it closed today. They weren't going to get it. So they extended for 10 days. And raised. By ¥1/share. </li>
<li>A couple of weeks ago, EQT was adamant delay was the enemy so Bain's 1%/month overbid was not enough. So now EQT is overbidding with time value of 0.06%/month. Hmmmm.</li>
</ul>


EQT is the incumbent underbidder while Bain's bid is just under 2% higher than EQT's ¥3,570 at ¥3,640. Bain refused to overbid for now. It is still waiting for approvals. 
EQT's ¥3,570 bid wasn't enough when it closed today. They weren't going to get it. So they extended for 10 days. And raised. By ¥1/share. 
A couple of weeks ago, EQT was adamant delay was the enemy so Bain's 1%/month overbid was not enough. So now EQT is overbidding with time value of 0.06%/month. Hmmmm.


[Japan M&A] EQT Kicks The Can on Its Kakaku (2371JP ) UnderBid by a Whopping ¥1/Share Increase

Japan

Kakaku.com, Inc provides price comparison services and products information through its website.  The Company also provides Internet advertising services.

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Kakaku.com Inc (2371 JP)

Asia-Pac Weekly Wrap: Kakaku, Ingenia Communities, Albis, Sharingtechnology, Cygnus Metals

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] EQT Bump Response from Kakaku.com Gives Hope for More From Bain

Kakaku's response to EQT's raise on the 10th tells you there is likely more to come. The wording suggests we m-a-y have a One Final Bid To Take It...

Travis Lundy

[Japan M&A] EQT Bumps Kakaku Bid to ¥3,680 - Through Bain's Bid - Means Bain Bid Likely Soon

Bain's approvals for Kakaku are due nowish. EQT has overbid their old underbid and Bain's overbid suggesting to me they knew what was coming....

Travis Lundy

Kakaku.com (2371 JP): No Messing Around as EQT/DG Goes with a JPY3,680 Offer

Bain/LY’s "wait and let EQT/DG fail" play has been undercut by the revised offer. While the buyout economics have eroded, Bain/LY is likely to...

Arun George

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Asia-Pac Weekly Wrap: Kakaku, Ingenia Communities, Albis, Sharingtechnology, Cygnus Metals

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] EQT Bump Response from Kakaku.com Gives Hope for More From Bain

Kakaku's response to EQT's raise on the 10th tells you there is likely more to come. The wording suggests we m-a-y have a One Final Bid To Take It...

Travis Lundy

[Japan M&A] EQT Bumps Kakaku Bid to ¥3,680 - Through Bain's Bid - Means Bain Bid Likely Soon

Bain's approvals for Kakaku are due nowish. EQT has overbid their old underbid and Bain's overbid suggesting to me they knew what was coming....

Travis Lundy

Kakaku.com (2371 JP): No Messing Around as EQT/DG Goes with a JPY3,680 Offer

Bain/LY’s "wait and let EQT/DG fail" play has been undercut by the revised offer. While the buyout economics have eroded, Bain/LY is likely to...

Arun George

[Japan M&A] EQT Kicks The Can on Its Kakaku (2371JP ) UnderBid by a Whopping ¥1/Share Increase

The EQT/DG ¥1/share overbid of their previous underbid and extension closes today, while Bain sits tight. Last time they overbid their underbid...

Travis Lundy