Director, Head of Research, Smartkarma

Pranav Rao

Director, Head of Research

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

<ul>
<li>Welcome to Curator’s Cut - a fortnightly roundup of standout themes from the 1,100+ insights published on Smartkarma.</li>
<li>In this cut, we explore the launch of our private markets coverage, the latest high-profile activist situations in Japan, and surging global IPO pipelines. </li>
<li>Want to dig deeper? Comment or message with the themes you’d like to see highlighted next.</li>
</ul>


Welcome to Curator’s Cut - a fortnightly roundup of standout themes from the 1,100+ insights published on Smartkarma.
In this cut, we explore the launch of our private markets coverage, the latest high-profile activist situations in Japan, and surging global IPO pipelines. 
Want to dig deeper? Comment or message with the themes you’d like to see highlighted next.


Curator's Cut: Going Private, Getting Active & Reviewing Public Market Premieres

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

The Tokyo Stock Exchange (TSE) calculates Free-Float Weight (FFW) for each listed company and uses this value as a key component of TOPIX Index Calculation. For companies with "low liquidity" the FFW will be multiplied by a fixed liquidity factor of 0.75 to derive the final FFW used for index calculation. This affects both TSE-1 incumbents and new entrants (depending on the date of entry). Every April, the application of this liquidity factor is reviewed by the TSE for all TSE1 constituents. Last April, 71 constituents saw their liquidity factors removed causing an increase in their respective FFWs used for index calculation resulting in a TOPIX upweight.This situation opens up interesting opportunities for a basket trade. Below is a discussion regarding the key details of TSE's FFW Calculation Methodology and the candidate stocks which could potentially experience a change in the application of the liquidity factor (including some surprisingly big names).

The Tokyo Stock Exchange (TSE) calculates Free-Float Weight (FFW) for each listed company and uses this value as a key component of TOPIX Index Calculation. For companies with "low liquidity" the FFW will be multiplied by a fixed liquidity factor of 0.75 to derive the final FFW used for index calculation. This affects both TSE-1 incumbents and new entrants (depending on the date of entry). Every April, the application of this liquidity factor is reviewed by the TSE for all TSE1 constituents. Last April, 71 constituents saw their liquidity factors removed causing an increase in their respective FFWs used for index calculation resulting in a TOPIX upweight.This situation opens up interesting opportunities for a basket trade. Below is a discussion regarding the key details of TSE's FFW Calculation Methodology and the candidate stocks which could potentially experience a change in the application of the liquidity factor (including some surprisingly big names).   

TOPIX Index Upweights: The Big April Basket 2021

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

<ul>
<li>GS has bumped terms for <a href="https://www.smartkarma.com/entities/raksul-inc" target="_blank" data-smartkarma-citation="entities:27043:1" rel="noopener">Raksul (4384 JP)</a>. It's not a great bump, but it is "final" it appears. Aspex got rolled in.  Anyone large will get rolled in too. </li>
<li>On <a href="https://www.smartkarma.com/entities/bluescope-steel-ltd" target="_blank" data-smartkarma-citation="entities:207:1" rel="noopener">BlueScope Steel (BSL AU)</a>, <a href="https://www.smartkarma.com/entities/sgh-limited" target="_blank" data-smartkarma-citation="entities:803:1" rel="noopener">SGH (SGH AU)</a>/<a href="https://www.smartkarma.com/entities/steel-dynamics-inc" target="_blank" data-smartkarma-citation="entities:11061:1" rel="noopener">Steel Dynamics (STLD US)</a> need to bolt on scrip; and/or flip to a conditional Offer, with a 50% acceptance hurdle, to gain control. </li>
<li>
<a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a>announced plans to sell its 15.2% stake in Samsung Display (unlisted). <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a><a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener"></a> may be the buyer. </li>
</ul>


GS has bumped terms for Raksul (4384 JP). It's not a great bump, but it is "final" it appears. Aspex got rolled in.  Anyone large will get rolled in too. 
On BlueScope Steel (BSL AU), SGH (SGH AU)/Steel Dynamics (STLD US) need to bolt on scrip; and/or flip to a conditional Offer, with a 50% acceptance hurdle, to gain control. 

Samsung SDI (006400 KS)announced plans to sell its 15.2% stake in Samsung Display (unlisted). Samsung Electronics (005930 KS) may be the buyer. 


Last Week In Event SPACE: Raksul, BlueScope, Samsung SDI, Qube

Travis Lundy

<ul>
<li>Today in the PM session, the GS-led consortium bidder for <a href="https://www.smartkarma.com/entities/raksul-inc" target="_blank" data-smartkarma-citation="entities:27043:1" rel="noopener">Raksul Inc (4384 JP)</a> extended the Tender Offer and raised its bid from ¥1,710/share to ¥1,900/share. </li>
<li>"The Tender Offer considered such price to be the maximum and final price that it could offer to the Target Company shareholders." This looks binary. Done or dead.</li>
<li>Since there appear to have been no acquisition proposals made to the company, it looks like this is "it." Activists will be allowed to roll in if they act quickly.</li>
</ul>


Today in the PM session, the GS-led consortium bidder for Raksul Inc (4384 JP) extended the Tender Offer and raised its bid from ¥1,710/share to ¥1,900/share. 
"The Tender Offer considered such price to be the maximum and final price that it could offer to the Target Company shareholders." This looks binary. Done or dead.
Since there appear to have been no acquisition proposals made to the company, it looks like this is "it." Activists will be allowed to roll in if they act quickly.


[Japan M&A/Activism] GS Bumps Raksul, Says Final, Gets One Investor Agreed, Gaslights Minorities

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/raksul-inc" target="_blank" data-smartkarma-citation="entities:27043:1" rel="noopener">Raksul Inc (4384 JP)</a> announced that the <a href="https://www.smartkarma.com/entities/goldman-sachs-group-inc" target="_blank" data-smartkarma-citation="entities:785:1" rel="noopener">Goldman Sachs Group (GS US)</a>-sponsored MBO price has increased by 11.1% from JPY1,710 to JPY1,900. The offer is final. </li>
<li>Aspex Management, which holds a 4.47% ownership stake, will tender and reinvest into a GS entity. However, the revised offer is below the recent purchases made by Keyrock and MY.Alpha.</li>
<li>GS is continuing discussions with certain institutional investors (one or more of Baillie, Keyrock, MY.Alpha) to likely follow Aspex’s lead, suggesting a divide-and-conquer strategy. </li>
</ul>



Raksul Inc (4384 JP) announced that the Goldman Sachs Group (GS US)-sponsored MBO price has increased by 11.1% from JPY1,710 to JPY1,900. The offer is final. 
Aspex Management, which holds a 4.47% ownership stake, will tender and reinvest into a GS entity. However, the revised offer is below the recent purchases made by Keyrock and MY.Alpha.
GS is continuing discussions with certain institutional investors (one or more of Baillie, Keyrock, MY.Alpha) to likely follow Aspex’s lead, suggesting a divide-and-conquer strategy. 


Raksul (4384 JP): The Success of the Final Offer Hinges on a Divide and Conquer Strategy

Japan

Raksul, Inc. provides Internet based services. The Company mainly offers net printing, net transportation, and other services. Raksul provides services in Japan.

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Raksul Inc (4384 JP)

Curator's Cut: Going Private, Getting Active & Reviewing Public Market Premieres

Discover the latest standout themes in private markets, activist situations in Japan, and global IPO pipelines in this Curator's Cut. Share your...

Pranav Rao

TOPIX Index Upweights: The Big April Basket 2021

TOPIX does an annual exercise to adjust Liquidity Factor. The time for trades around that is upon us. This insight looks at the best trade around...

Janaghan Jeyakumar, CFA

Last Week In Event SPACE: Raksul, BlueScope, Samsung SDI, Qube

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

[Japan M&A/Activism] GS Bumps Raksul, Says Final, Gets One Investor Agreed, Gaslights Minorities

GS bumps Raksul but it is miserly. Instead, in the fine print they (basically) offer large shareholders a chance to reinvest in the back end if...

Travis Lundy

Raksul (4384 JP): The Success of the Final Offer Hinges on a Divide and Conquer Strategy

Shares are trading marginally higher than the revised and final offer. GS is continuing discussions with one or more of the activists, suggesting a...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Curator's Cut: Going Private, Getting Active & Reviewing Public Market Premieres

​Discover the latest standout themes in private markets, activist situations in Japan, and global IPO pipelines in this Curator's Cut. Share your...

Pranav Rao

TOPIX Index Upweights: The Big April Basket 2021

TOPIX does an annual exercise to adjust Liquidity Factor. The time for trades around that is upon us. This insight looks at the best trade around...

Janaghan Jeyakumar, CFA

Last Week In Event SPACE: Raksul, BlueScope, Samsung SDI, Qube

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

[Japan M&A/Activism] GS Bumps Raksul, Says Final, Gets One Investor Agreed, Gaslights Minorities

GS bumps Raksul but it is miserly. Instead, in the fine print they (basically) offer large shareholders a chance to reinvest in the back end if...

Travis Lundy

Raksul (4384 JP): The Success of the Final Offer Hinges on a Divide and Conquer Strategy

Shares are trading marginally higher than the revised and final offer. GS is continuing discussions with one or more of the activists, suggesting a...

Arun George

Discover the latest standout themes in private markets, activist situations in Japan, and global IPO pipelines in this Curator's Cut. Share your...