Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Canvest Environmental Protection Group / Event-Driven

Canvest Environmental Protection Group (0XC SW)

<ul>
<li>I tally 40 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>Four new deals discussed this week: Schemes for <a href="https://www.smartkarma.com/entities/beijing-capital-grand-ltd" target="_blank" data-smartkarma-citation="entities:18241:1" rel="noopener">Beijing Capital Grand (1329 HK)</a> and <a href="https://www.smartkarma.com/entities/cm-hi-tech-cleanroom-limited" target="_blank" data-smartkarma-citation="entities:44057:1" rel="noopener">CM Hi-Tech (2115 HK)</a>, and Tender Offers for <a href="https://www.smartkarma.com/entities/elematec-corp" target="_blank" data-smartkarma-citation="entities:2866:1" rel="noopener">Elematec (2715 JP)</a> and <a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks (1973 JP)</a>.</li>
<li>Key updates took place on: <a href="https://www.smartkarma.com/entities/hotel-property-investments" target="_blank" data-smartkarma-citation="entities:9850:1" rel="noopener">Hotel Property Investments (HPI AU)</a>, <a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection Group (1381 HK)</a> and <a href="https://www.smartkarma.com/entities/capitol-health-ltd" target="_blank" data-smartkarma-citation="entities:14504:1" rel="noopener">Capitol Health (CAJ AU)</a>.</li>
</ul>


I tally 40 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Four new deals discussed this week: Schemes for Beijing Capital Grand (1329 HK) and CM Hi-Tech (2115 HK), and Tender Offers for Elematec (2715 JP) and Nec Networks (1973 JP).
Key updates took place on: Hotel Property Investments (HPI AU), Canvest Environmental Protection Group (1381 HK) and Capitol Health (CAJ AU).


(Mostly) Asia-Pac M&A: Beijing Capital Grand, Elematec, Nec Networks, Hotel Property Invest, Canvest

<ul>
<li>For the month of October 2024, 10 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$9bn.</li>
<li>The average premium for the new transactions announced (or first discussed) in October was ~26%. The average premium YTD is ~42%.</li>
<li>This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.</li>
</ul>


For the month of October 2024, 10 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$9bn.
The average premium for the new transactions announced (or first discussed) in October was ~26%. The average premium YTD is ~42%.
This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.


(Mostly) Asia M&A, Oct 2024: Arcadium, T Gaia, Elematec, NEC Network, MPHB, Sigma Health, Fuji Soft

Research Coverage of Japanese Listed Companies, Shared Research Inc

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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

Nec Networks & System Integr / Equity Bottom-Up

<ul><li>Orders increased by 9.0% YoY, with DX Solutions up 20.8% YoY, Network Solutions down 2.9% YoY, and Environmental & Social Solutions up 0.1% YoY.</li><li>Revenue rose 10.9% YoY, with DX Solutions up 11.3% YoY, Network Solutions down 8.8% YoY, and Environmental & Social Solutions up 9.5% YoY.</li><li>Operating profit increased 25.8% YoY, with DX Solutions up 7.5% YoY, Network Solutions up 9.7% YoY, and Social & Environmental Solutions up 39.0% YoY.</li></ul>

Orders increased by 9.0% YoY, with DX Solutions up 20.8% YoY, Network Solutions down 2.9% YoY, and Environmental & Social Solutions up 0.1% YoY.Revenue rose 10.9% YoY, with DX Solutions up 11.3% YoY, Network Solutions down 8.8% YoY, and Environmental & Social Solutions up 9.5% YoY.Operating profit increased 25.8% YoY, with DX Solutions up 7.5% YoY, Network Solutions up 9.7% YoY, and Social & Environmental Solutions up 39.0% YoY.

Nec Networks & System Integr (1973 JP): 1H FY03/25 flash update

Travis Lundy

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/toyota-tsusho-corp" target="_blank" data-smartkarma-citation="entities:13826:1" rel="noopener">Toyota Tsusho (8015 JP)</a> announced it would take out minorities in electronics parts/items producer subsidiary (since 2012) <a href="https://www.smartkarma.com/entities/elematec-corp" target="_blank" data-smartkarma-citation="entities:2866:1" rel="noopener">Elematec Corp (2715 JP)</a> at 40% up.</li>
<li>It has been a bad year, so this is opportunistic. The price is too cheap, there are no synergies involved, there was no Special Committee Financial Advisor. Weak process. </li>
<li>But this gets done because the parent plus friendlies start with 62% or so. </li>
</ul>


Today after the close, Toyota Tsusho (8015 JP) announced it would take out minorities in electronics parts/items producer subsidiary (since 2012) Elematec Corp (2715 JP) at 40% up.
It has been a bad year, so this is opportunistic. The price is too cheap, there are no synergies involved, there was no Special Committee Financial Advisor. Weak process. 
But this gets done because the parent plus friendlies start with 62% or so. 


Elematec (2715 JP) Tender Offer by Parent Co at ¥2,400. Cheap, Weak Process, But WhatchaGonnaDo?

Nec Networks & System Integr / Event-Driven

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/nec-corp" target="_blank" data-smartkarma-citation="entities:17084:1" rel="noopener">NEC Corp (6701 JP)</a> announced a long-expected and "arbitraged" takeover of <a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks &amp; System Integr (1973 JP)</a> after the latter reported a delay in earnings and great numbers.</li>
<li>The premium is a bit light, and the internal mechanics to NEC are highly favourable. This was always going to happen this way. It's a pity it took so long.</li>
<li>This gets done easily as active foreign owners, arbs, and crossholders will sell into it, and only 15.3% is needed to get this over the hump.</li>
</ul>


Today, NEC Corp (6701 JP) announced a long-expected and "arbitraged" takeover of Nec Networks &amp; System Integr (1973 JP) after the latter reported a delay in earnings and great numbers.
The premium is a bit light, and the internal mechanics to NEC are highly favourable. This was always going to happen this way. It's a pity it took so long.
This gets done easily as active foreign owners, arbs, and crossholders will sell into it, and only 15.3% is needed to get this over the hump.


NEC Parent Tender Offer for NEC Network & SysInt (1973 JP) - Long Expected, Low Premium (¥3250)

Japan

NEC Networks & System Integration Corporation designs, constructs, and maintains communication systems.  The Company's services include system integration services for digital switching, local area network (LAN), and mobile communication systems.  NEC Networks & System Integration also constructs information infrastructure and intelligent building facilities.

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Nec Networks & System Integr (1973 JP)

(Mostly) Asia-Pac M&A: Beijing Capital Grand, Elematec, Nec Networks, Hotel Property Invest, Canvest

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

(Mostly) Asia M&A, Oct 2024: Arcadium, T Gaia, Elematec, NEC Network, MPHB, Sigma Health, Fuji Soft

For the month of Oct, 10 new deals were discussed on Smartkarma with an overall deal size of just ~US$9bn. The average premium for the new deals...

David Blennerhassett