Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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)

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 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> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/nec-corp" target="_blank" data-smartkarma-citation="entities:17084:1" rel="noopener">NEC Corp (6701 JP)</a> at JPY3,250, 21.5% premium to the undisturbed price of JPY2,675 (28 October).</li>
<li>The tender offer runs from 30 October to 11 December (30 business days), with payment commencing from 18 December. The offer represents an all-time high. </li>
<li>While below the midpoint IFA DCF range, the offer is attractive vs peer multiples and historical trading ranges. This is a done deal. </li>
</ul>



Nec Networks &amp; System Integr (1973 JP) has recommended a tender offer from NEC Corp (6701 JP) at JPY3,250, 21.5% premium to the undisturbed price of JPY2,675 (28 October).
The tender offer runs from 30 October to 11 December (30 business days), with payment commencing from 18 December. The offer represents an all-time high. 
While below the midpoint IFA DCF range, the offer is attractive vs peer multiples and historical trading ranges. This is a done deal. 


NESIC (1973 JP): NEC (6701 JP)’s JPY3,250 Tender Offer

Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

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>Q1 progress rates versus full-year forecast: 25.7% for orders, 21.7% for revenue, 8.2% for operating profit, 8.4% for net income.</li><li>Orders: JPY97.5bn (+1.0% YoY); Revenue: JPY79.1bn (+10.4% YoY); Operating profit: JPY2.4bn (+113.2% YoY); Net income: JPY1.5bn (+734.1% YoY).</li><li>Segment performance: DX Solutions orders +18.6% YoY, Network Solutions orders -3.3% YoY, Environmental & Social Solutions orders -11.9% YoY.</li></ul>

Q1 progress rates versus full-year forecast: 25.7% for orders, 21.7% for revenue, 8.2% for operating profit, 8.4% for net income.Orders: JPY97.5bn (+1.0% YoY); Revenue: JPY79.1bn (+10.4% YoY); Operating profit: JPY2.4bn (+113.2% YoY); Net income: JPY1.5bn (+734.1% YoY).Segment performance: DX Solutions orders +18.6% YoY, Network Solutions orders -3.3% YoY, Environmental & Social Solutions orders -11.9% YoY.

Nec Networks & System Integr (1973 JP): Q1 FY03/25 flash update

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Index Rebalance

<ul>
<li>JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted capped index composed of 400 constituents.</li>
<li>The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.</li>
<li>Below is a look at the rankings of potential ADDs/DELs for the JPX-Nikkei 400 August 2025 rebalance based on trading data as of end-May 2025.</li>
</ul>


JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted capped index composed of 400 constituents.
The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
Below is a look at the rankings of potential ADDs/DELs for the JPX-Nikkei 400 August 2025 rebalance based on trading data as of end-May 2025.


Quiddity JPX-Nikkei 400 Rebal 2025: End-May 2025 Ranks

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ntt-data-corp" target="_blank" data-smartkarma-citation="entities:11232:1" rel="noopener">NTT Data Corp (9613 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a> at JPY4,000 per share, a 33.7% premium to the last close.</li>
<li>The Nikkei earlier reported on the offer. The offer represents an all-time high and is attractive compared to historical trading ranges, peer multiples and precedent transactions. </li>
<li>The offer could be considered light as it is below the midpoint of the target IFA’s DCF valuation range. However, the shareholder structure suggests a done deal.  </li>
</ul>



NTT Data Corp (9613 JP) has recommended a tender offer from NTT (Nippon Telegraph &amp; Telephone) (9432 JP) at JPY4,000 per share, a 33.7% premium to the last close.
The Nikkei earlier reported on the offer. The offer represents an all-time high and is attractive compared to historical trading ranges, peer multiples and precedent transactions. 
The offer could be considered light as it is below the midpoint of the target IFA’s DCF valuation range. However, the shareholder structure suggests a done deal.  


NTT DATA (9613 JP): NTT (9432 JP) Tender Offer at JPY4,000

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 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

NESIC (1973 JP): NEC (6701 JP)’s JPY3,250 Tender Offer

While below the midpoint IFA DCF range, the offer is attractive vs peer multiples and historical trading ranges. This is a done deal.

Arun George