Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>I tally 23 - 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>One new deal was discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/global-ltd-the" target="_blank" data-smartkarma-citation="entities:9672:1" rel="noopener">Global (3271 JP)</a>. Both <a href="https://www.smartkarma.com/entities/ronzgun-international-holdings" target="_blank" data-smartkarma-citation="entities:40082:1" rel="noopener">Rongzun (1780 HK)</a> and <a href="https://www.smartkarma.com/entities/beijingwest-industries-interna" target="_blank" data-smartkarma-citation="entities:13118:1" rel="noopener">BeijingWest Industries (2339 HK)</a> are suspended pursuant to the Hong Kong Takever's Code.</li>
<li>Key updates/news also took place on: <a href="https://www.smartkarma.com/entities/insignia-financial-ltd" target="_blank" data-smartkarma-citation="entities:12349:1" rel="noopener">Insignia Financial (IFL AU)</a>, <a href="https://www.smartkarma.com/entities/national-storage-reit" target="_blank" data-smartkarma-citation="entities:13762:1" rel="noopener">National Storage REIT (NSR AU)</a>, <a href="https://www.smartkarma.com/entities/bright-smart-securities-commodities-group" target="_blank" data-smartkarma-citation="entities:20511:1" rel="noopener">Bright Smart Securities (1428 HK)</a>, <a href="https://www.smartkarma.com/entities/mcj-co-ltd" target="_blank" data-smartkarma-citation="entities:14132:1" rel="noopener">MCJ (6670 JP)</a>, and <a href="https://www.smartkarma.com/entities/takara-bio-inc" target="_blank" data-smartkarma-citation="entities:10766:1" rel="noopener">Takara Bio Inc (4974 JP)</a>.</li>
</ul>


I tally 23 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
One new deal was discussed on Smartkarma this week: Global (3271 JP). Both Rongzun (1780 HK) and BeijingWest Industries (2339 HK) are suspended pursuant to the Hong Kong Takever's Code.
Key updates/news also took place on: Insignia Financial (IFL AU), National Storage REIT (NSR AU), Bright Smart Securities (1428 HK), MCJ (6670 JP), and Takara Bio Inc (4974 JP).


Asia-Pac M&A Weekly Wrap: The Global, Insignia Financial, National Storage REIT, MCJ, Takara Bio

<ul>
<li>The correct long-term thing to do is, and the right short-term trade don't match. Best to sell <a href="https://www.smartkarma.com/entities/mcj-co-ltd" target="_blank" data-smartkarma-citation="entities:14132:1" rel="noopener">MCJ (6670 JP)</a> above the tender offer price or at the offer price.</li>
<li>At 6.1x forward EV/EBITDA - and ~80% discount to NAV - <a href="https://www.smartkarma.com/entities/avichina-industry-technology-h" target="_blank" data-smartkarma-citation="entities:16315:1" rel="noopener">AviChina Industry &amp; Technology H (2357 HK)</a> is not expensive.</li>
<li>An interesting fact pattern appears like it might be a setup for a significant change in capital structure for <a href="https://www.smartkarma.com/entities/tokyo-steel-mfg-co-ltd" target="_blank" data-smartkarma-citation="entities:16195:1" rel="noopener">Tokyo Steel Mfg (5423 JP) T</a> related to the former CEO</li>
</ul>


The correct long-term thing to do is, and the right short-term trade don't match. Best to sell MCJ (6670 JP) above the tender offer price or at the offer price.
At 6.1x forward EV/EBITDA - and ~80% discount to NAV - AviChina Industry &amp; Technology H (2357 HK) is not expensive.
An interesting fact pattern appears like it might be a setup for a significant change in capital structure for Tokyo Steel Mfg (5423 JP) T related to the former CEO


Last Week In Event SPACE: MCJ, AviChina, Tokyo Steel Mfg, 3SBio

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 weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.</li>
<li>ECM developments: <a href="https://www.smartkarma.com/entities/huaqin-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:40954:1" rel="noopener">Huaqin Technology (603296 CH)</a> and <a href="https://www.smartkarma.com/entities/victory-giant-technology-a" target="_blank" data-smartkarma-citation="entities:25395:1" rel="noopener">Victory Giant Technology -A (300476 CH)</a> H Share listings.</li>
<li>Event-Driven developments: <a href="https://www.smartkarma.com/entities/e-grand-co-ltd" target="_blank" data-smartkarma-citation="entities:1821:1" rel="noopener">E'grand Co Ltd (3294 JP)</a>, <a href="https://www.smartkarma.com/entities/mcj-co-ltd" target="_blank" data-smartkarma-citation="entities:14132:1" rel="noopener">MCJ Co Ltd (6670 JP)</a>, <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a>, <a href="https://www.smartkarma.com/entities/taiyo-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15154:1" rel="noopener">Taiyo Holdings (4626 JP)</a>. </li>
</ul>


A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Huaqin Technology (603296 CH) and Victory Giant Technology -A (300476 CH) H Share listings.
Event-Driven developments: E'grand Co Ltd (3294 JP), MCJ Co Ltd (6670 JP), Sankei Real Estate (2972 JP), Taiyo Holdings (4626 JP). 


Weekly Deals Digest (05 Apr) - MCJ, E'grand, Sankei RE, Taiyo, Huaqin, Victory Giant

Travis Lundy

<ul>
<li>Bain had to extend the <a href="https://www.smartkarma.com/entities/mcj-co-ltd" target="_blank" data-smartkarma-citation="entities:14132:1" rel="noopener">MCJ Co Ltd (6670 JP)</a> Tender Offer because they did not get enough shares to get over the hurdle. At least two activists object publicly.</li>
<li>The shares had traded through since the start, fell near the end of the regular tender, and when that did not succeed, shares rose again. </li>
<li>Bain today released a presentation meant to coerce shareholders into accepting the sub-par deal. And they point out how the deal was coercive in the first place.</li>
</ul>


Bain had to extend the MCJ Co Ltd (6670 JP) Tender Offer because they did not get enough shares to get over the hurdle. At least two activists object publicly.
The shares had traded through since the start, fell near the end of the regular tender, and when that did not succeed, shares rose again. 
Bain today released a presentation meant to coerce shareholders into accepting the sub-par deal. And they point out how the deal was coercive in the first place.


[Japan M&A/Activism] Bain Releases Presentation Emphasising MCJ (6670 JP) Bid Coercive - Game of 🐓

<ul>
<li>Bain notes that its JPY2,200 offer for <a href="https://www.smartkarma.com/entities/mcj-co-ltd" target="_blank" data-smartkarma-citation="entities:14132:1" rel="noopener">MCJ Co Ltd (6670 JP)</a> is final and has no intention of extending the close beyond 7 April.</li>
<li>There remains a chance of a bump as these “final” statements are not binding, and Bain clearly does not have the required acceptances. However, the probability remains low.</li>
<li>The likely scenario remains that Bain completes the offer by lowering the minimum, as today’s statement is likely designed to secure enough acceptances to complete the deal by doing so.</li>
</ul>


Bain notes that its JPY2,200 offer for MCJ Co Ltd (6670 JP) is final and has no intention of extending the close beyond 7 April.
There remains a chance of a bump as these “final” statements are not binding, and Bain clearly does not have the required acceptances. However, the probability remains low.
The likely scenario remains that Bain completes the offer by lowering the minimum, as today’s statement is likely designed to secure enough acceptances to complete the deal by doing so.


MCJ (6670 JP): Bain Moves to Deflate Expectations of a Bump

Japan

MCJ Co., Ltd. manufactures and markets personal computers and its related products.  The Company provides desktop and laptop computers, computer memories, printers, and hard drives.

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MCJ Co Ltd (6670 JP)

Asia-Pac M&A Weekly Wrap: The Global, Insignia Financial, National Storage REIT, MCJ, Takara Bio

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

Last Week In Event SPACE: MCJ, AviChina, Tokyo Steel Mfg, 3SBio

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Weekly Deals Digest (05 Apr) - MCJ, E'grand, Sankei RE, Taiyo, Huaqin, Victory Giant

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, NZ, Singapore, Japan, Indonesia,...

Arun George

[Japan M&A/Activism] Bain Releases Presentation Emphasising MCJ (6670 JP) Bid Coercive - Game of 🐓

The Block MCJ MBO Dream may end soon. Bain says no hike no extension. They also note they have the CEO (34.4%) locked up for 18mos even if the deal...

Travis Lundy

MCJ (6670 JP): Bain Moves to Deflate Expectations of a Bump

As these "final offer" statements are not binding, there remains a chance of a bump. However, the likely scenario remains that Bain completes the...

Arun George

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