IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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.

Event-Driven

Nec Networks & System Integr / Event-Driven

<ul>
<li>Oasis has become a substantial shareholder of <a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" rel="noopener">Nec Networks &amp; System Integr (1973 JP)</a>, representing 13.2 million shares or an 8.83% ownership ratio. </li>
<li>Oasis has not commented on its intentions, but its stake signifies two possibilities – the start of an activist campaign to secure a bump or a play on appraisal rights.</li>
<li>A bump while possible is not a certainty. NEC is likely to wait to see to if Oasis increases its stake to a level which threatens its offer. </li>
</ul>


Oasis has become a substantial shareholder of Nec Networks &amp; System Integr (1973 JP), representing 13.2 million shares or an 8.83% ownership ratio. 
Oasis has not commented on its intentions, but its stake signifies two possibilities – the start of an activist campaign to secure a bump or a play on appraisal rights.
A bump while possible is not a certainty. NEC is likely to wait to see to if Oasis increases its stake to a level which threatens its offer. 


NEC Networks & System (1973 JP): Oasis Stake Could Be a Headache for NEC

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>On 29-October, <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 low-ball TOB to buy out subsidiary <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>. It deserved activism, but finding an activist was tough.</li>
<li>On 7 November, it got an activist, and I wrote on 8-November the <a href="https://www.smartkarma.com/insights/nec-network-system-integration-1973-gets-more-interesting-the-landscape-has-changed" target="_blank" rel="noopener">Landscape Had Changed</a> that they might have bought 6mm shares more in 5 days. They bought 8.4mm.</li>
<li>The Landscape Has FULLY Changed. The details now matter quite a bit. NEC has two basic choices. Neither are that palatable. But Target Advisor DCF was ¥3,073-4,688 without synergies.</li>
</ul>


On 29-October, NEC Corp (6701 JP) announced a low-ball TOB to buy out subsidiary Nec Networks &amp; System Integr (1973 JP). It deserved activism, but finding an activist was tough.
On 7 November, it got an activist, and I wrote on 8-November the Landscape Had Changed that they might have bought 6mm shares more in 5 days. They bought 8.4mm.
The Landscape Has FULLY Changed. The details now matter quite a bit. NEC has two basic choices. Neither are that palatable. But Target Advisor DCF was ¥3,073-4,688 without synergies.


NEC Network (1973 JP) Tender Offer - The Landscape Has Fully Changed

David Blennerhassett

<ul>
<li>I tally 48 - 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>Six new deals this week! TOs for <a href="https://www.smartkarma.com/entities/agro-kanesho-co-ltd" target="_blank" data-smartkarma-citation="entities:17621:1" rel="noopener">Agro Kanesho (4955 JP)</a>, <a href="https://www.smartkarma.com/entities/nishimoto-co-ltd" target="_blank" data-smartkarma-citation="entities:44086:1" rel="noopener">Nishimoto (9260 JP)</a>, <a href="https://www.smartkarma.com/entities/chita-kogyo-co-ltd" target="_blank" data-smartkarma-citation="entities:9882:1" rel="noopener">Chita Kogyo (5993 JP)</a>, <a href="https://www.smartkarma.com/entities/macromill-inc" target="_blank" data-smartkarma-citation="entities:24026:1" rel="noopener">Macromill (3978 JP)</a>. Also <a href="https://www.smartkarma.com/entities/silk-logistics-holdings-limited" target="_blank" data-smartkarma-citation="entities:35733:1" rel="noopener">Silk Logistics (SLH AU)</a> and <a href="https://www.smartkarma.com/entities/avarga-ltd" target="_blank" data-smartkarma-citation="entities:13105:1" rel="noopener">Avarga (AVARGA SP)</a>.</li>
<li>Key updates took place on: <a href="https://www.smartkarma.com/entities/pacific-smiles-group-ltd" target="_blank" data-smartkarma-citation="entities:2891:1" rel="noopener">Pacific Smiles (PSQ AU)</a>, <a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASMPT (522 HK)</a>, <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>, <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I (3382 JP)</a>, and <a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a>.</li>
</ul>


I tally 48 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Six new deals this week! TOs for Agro Kanesho (4955 JP), Nishimoto (9260 JP), Chita Kogyo (5993 JP), Macromill (3978 JP). Also Silk Logistics (SLH AU) and Avarga (AVARGA SP).
Key updates took place on: Pacific Smiles (PSQ AU), ASMPT (522 HK), Nec Networks &amp; System Integr (1973 JP), Seven &amp; I (3382 JP), and Malaysia Airports Holdings (MAHB MK).


(Mostly) Asia-Pac M&A: Agro Kanesho, Nishimoto, Chita Kogyo, Macromill, Silk Logistics, Avarga, MAHB

<ul>
<li>On 29 October 2024, <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 tender offer for subsidiary <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>. They own 51% already. The price was too low. </li>
<li>They need 15.3% and with crossholders, I expect they have another 4.7-5.7% of shares "in the bag." </li>
<li>But a large sometimes activist owned 2% and bought another 4% on Day 1. That changes the calculus. Details matter. </li>
</ul>


On 29 October 2024, NEC Corp (6701 JP) announced a tender offer for subsidiary Nec Networks &amp; System Integr (1973 JP). They own 51% already. The price was too low. 
They need 15.3% and with crossholders, I expect they have another 4.7-5.7% of shares "in the bag." 
But a large sometimes activist owned 2% and bought another 4% on Day 1. That changes the calculus. Details matter. 


NEC Network & System Integration (1973) Gets More Interesting - The Landscape Has Changed

<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)

NEC Networks & System (1973 JP): Oasis Stake Could Be a Headache for NEC

Since announcing the offer, the shares have traded at or above terms. Including Oasis’ pre-tender stake, the total potential “NO” volume is 35.0m...

Arun George

NEC Network (1973 JP) Tender Offer - The Landscape Has Fully Changed

2 days before the Tender Offer closes, NEC put out a PR saying NEC thought the TOB was good for them and the future of NESIC. I don't care about...

Travis Lundy

(Mostly) Asia-Pac M&A: Agro Kanesho, Nishimoto, Chita Kogyo, Macromill, Silk Logistics, Avarga, MAHB

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

NEC Network & System Integration (1973) Gets More Interesting - The Landscape Has Changed

A sometimes activist has bought a large stake in NEC NetworkSysInt at or above terms, getting them to 6%. I expect they now own more. If they were...

Travis Lundy

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

NEC buys out minorities in NEC Network and SysInt. The process is inadequate, the price is light, and doesn't get to the midway on the DCF and...

Travis Lundy

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