Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>I tally 42 - 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>Two new deals discussed this week: <a href="https://www.smartkarma.com/entities/get-nice-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:29667:1" rel="noopener">Get Nice Financial Group Ltd (1469 HK)</a>'s scrip Offer, and <a href="https://www.smartkarma.com/entities/net-one-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:1279:1" rel="noopener">Net One Systems (7518 JP)</a>'s tender Offer. Plus <a href="https://www.smartkarma.com/entities/sigma-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:15966:1" rel="noopener">Sigma Healthcare (SIG AU)</a>'s reverse takeover.</li>
<li>Key updates took place on: <a href="https://www.smartkarma.com/entities/latin-resources-ltd" target="_blank" data-smartkarma-citation="entities:8770:1" rel="noopener">Latin Resources (LRS AU)</a>, <a href="https://www.smartkarma.com/entities/i-rom-group-co-ltd" target="_blank" data-smartkarma-citation="entities:2686:1" rel="noopener">I'Rom Group (2372 JP)</a>, <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>, <a href="https://www.smartkarma.com/entities/korea-zinc-co-ltd" target="_blank" data-smartkarma-citation="entities:17944:1" rel="noopener">Korea Zinc (010130 KS)</a>, and <a href="https://www.smartkarma.com/entities/propertyguru-group-limited" target="_blank" data-smartkarma-citation="entities:28149:1" rel="noopener">PropertyGuru (PGRU US)</a>.</li>
</ul>


I tally 42 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Two new deals discussed this week: Get Nice Financial Group Ltd (1469 HK)'s scrip Offer, and Net One Systems (7518 JP)'s tender Offer. Plus Sigma Healthcare (SIG AU)'s reverse takeover.
Key updates took place on: Latin Resources (LRS AU), I'Rom Group (2372 JP), Malaysia Airports Holdings (MAHB MK), Korea Zinc (010130 KS), and PropertyGuru (PGRU US).


(Mostly) Asia-Pac M&A: Sigma Healthcare, Get Nice, Net One Systems, Latin Resources, Korea Zinc

Travis Lundy

<ul>
<li>Today (6 Nov) <a href="https://www.smartkarma.com/entities/scsk-corp" target="_blank" data-smartkarma-citation="entities:19996:1" rel="noopener">Scsk Corp (9719 JP)</a> and <a href="https://www.smartkarma.com/entities/net-one-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:1279:1" rel="noopener">Net One Systems (7518 JP)</a> that the former would launch a tender offer tomorrow to buy out the latter. </li>
<li>Unusually among recent takeovers, there is no large incumbent strategic or founding shareholder. This is pure corporate LBO. Synergies are obvious, but not counted. The multiple is low. </li>
<li>The pricing is a bit low, perhaps PE firms were not invited to compete. Or perhaps there's something else. Totally non-transparent. Simple deal... But it has issues. </li>
</ul>


Today (6 Nov) Scsk Corp (9719 JP) and Net One Systems (7518 JP) that the former would launch a tender offer tomorrow to buy out the latter. 
Unusually among recent takeovers, there is no large incumbent strategic or founding shareholder. This is pure corporate LBO. Synergies are obvious, but not counted. The multiple is low. 
The pricing is a bit low, perhaps PE firms were not invited to compete. Or perhaps there's something else. Totally non-transparent. Simple deal... But it has issues. 


SCSK Tender Offer for Independent Net One Systems (7518) - Potential Problems

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/net-one-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:1279:1" rel="noopener">Net One Systems (7518 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/scsk-corp" target="_blank" data-smartkarma-citation="entities:19996:1" rel="noopener">Scsk Corp (9719 JP)</a> at JPY4,500, 25.9% premium to the undisturbed price of JPY3,574 (5 November).</li>
<li>The tender offer runs from 7 November to 18 December (30 business days), with payment commencing from 25 December. The offer is marginally below the all-time high. </li>
<li>The offer is attractive compared to precedent transactions, peer multiples, and historical trading ranges. The shareholder register is open, which facilitates the deal.  </li>
</ul>



Net One Systems (7518 JP) has recommended a tender offer from Scsk Corp (9719 JP) at JPY4,500, 25.9% premium to the undisturbed price of JPY3,574 (5 November).
The tender offer runs from 7 November to 18 December (30 business days), with payment commencing from 25 December. The offer is marginally below the all-time high. 
The offer is attractive compared to precedent transactions, peer multiples, and historical trading ranges. The shareholder register is open, which facilitates the deal.  


Net One Systems (7518 JP): SCSK (9719 JP)’s JPY4,500 Tender Offer

Nec Networks & System Integr / Event-Driven

<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

<ul>
<li>A variety of articles of recent from private media sources have suggested that <a href="https://www.smartkarma.com/entities/teijin-ltd" target="_blank" data-smartkarma-citation="entities:5097:1" rel="noopener">Teijin Ltd (3401 JP)</a> has its 55% stake in <a href="https://www.smartkarma.com/entities/infocom-corp" target="_blank" data-smartkarma-citation="entities:8412:1" rel="noopener">Infocom Corp (4348 JP)</a> up for auction. </li>
<li>According to earlier articles, binding Second Round bids were due last week. According to an article out late last week, binding bids have been made, with some "around ¥250bn."</li>
<li>What that means for price may depend on what the "around ¥250bn" means. A brief exploration below. </li>
</ul>


A variety of articles of recent from private media sources have suggested that Teijin Ltd (3401 JP) has its 55% stake in Infocom Corp (4348 JP) up for auction. 
According to earlier articles, binding Second Round bids were due last week. According to an article out late last week, binding bids have been made, with some "around ¥250bn."
What that means for price may depend on what the "around ¥250bn" means. A brief exploration below. 


Infocom (4348 JP) - The Meaning of 'Binding Bids' and '¥250bn'

Japan

Net One Systems Co., Ltd. designs, installs, maintains and supports computer network systems.  The company also installs computer security related products and integrated audio visual data communication environment system by applying IP (Internet Protocol) technology.  Net One Systems builds virtualized data center environment as well.

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Net One Systems (7518 JP)

(Mostly) Asia-Pac M&A: Sigma Healthcare, Get Nice, Net One Systems, Latin Resources, Korea Zinc

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

SCSK Tender Offer for Independent Net One Systems (7518) - Potential Problems

SCSK has announced an agreed deal to buy Net One Systems which sought an inorganic growth partner. The deal isn't that rich, there is zero...

Travis Lundy