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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yomeishu-seizo-co-ltd" target="_blank" data-smartkarma-citation="entities:6904:1" rel="noopener">Yomeishu Seizo (2540 JP)</a> has announced a tender offer from Reno (a Murakami entity) at an 11.9% discount to the pre-announcement close of JPY4,595. </li>
<li>The economics of the transaction favour Murakami. Due to a series of post-squeezeout transactions, Murakami will recover more funds than it cost to buy out the minorities.  </li>
<li>Murakami is relying on past AGM voting trends and passives to pass the EGM share consolidation vote. Nevertheless, this is done as irrevocables satisfy the minimum.</li>
</ul>



Yomeishu Seizo (2540 JP) has announced a tender offer from Reno (a Murakami entity) at an 11.9% discount to the pre-announcement close of JPY4,595. 
The economics of the transaction favour Murakami. Due to a series of post-squeezeout transactions, Murakami will recover more funds than it cost to buy out the minorities.  
Murakami is relying on past AGM voting trends and passives to pass the EGM share consolidation vote. Nevertheless, this is done as irrevocables satisfy the minimum.


Yomeishu Seizo (2540 JP): Murakami’s Takeunder Is Self-Financing and a Done Deal

Hisamitsu Pharmaceutical Co / Event-Driven

<ul>
<li>Since announcing the offer, <a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a>’s shares have traded consistently above the MBO offer price of JPY6,082. The offer closes on 19 February. </li>
<li>While there was no auction, the offer is reasonable. The spate of recent MBOs that attracted activists successfully securing better terms may also be behind the share price action.</li>
<li>The probability of a bump is low due to no visible activism, peers not re-rating, irrevocables, several crossholders, and the minimum can be lowered. Take profits.  </li>
</ul>


Since announcing the offer, Hisamitsu Pharmaceutical Co (4530 JP)’s shares have traded consistently above the MBO offer price of JPY6,082. The offer closes on 19 February. 
While there was no auction, the offer is reasonable. The spate of recent MBOs that attracted activists successfully securing better terms may also be behind the share price action.
The probability of a bump is low due to no visible activism, peers not re-rating, irrevocables, several crossholders, and the minimum can be lowered. Take profits.  


Hisamitsu Pharma (4530 JP): Risk/Reward as Shares Trade Through Terms

<ul>
<li>CVC has increased its <a href="https://www.smartkarma.com/entities/mandom-corp" target="_blank" data-smartkarma-citation="entities:8353:1" rel="noopener">Mandom Corp (4917 JP)</a> offer by 23.2% to JPY3,105, a 0.2% premium to KKR’s potential JPY3,100 offer and a 1.7% discount to the last close.</li>
<li>The Board recommends CVC's offer due to its higher price, acceptable financing, enhanced value plan, and shorter timelines. The Board has terminated discussions with KKR. </li>
<li>KKR could return with a revised and potentially hostile offer. However, the probability is low, as its current offer resulted from an auction.  </li>
</ul>


CVC has increased its Mandom Corp (4917 JP) offer by 23.2% to JPY3,105, a 0.2% premium to KKR’s potential JPY3,100 offer and a 1.7% discount to the last close.
The Board recommends CVC's offer due to its higher price, acceptable financing, enhanced value plan, and shorter timelines. The Board has terminated discussions with KKR. 
KKR could return with a revised and potentially hostile offer. However, the probability is low, as its current offer resulted from an auction.  


Mandom (4917 JP): CVC Outbids and Outmanoeuvres KKR

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a> announced MBO intending to take it private. The offer has been set at ¥6,082 per share which translates to an offer size of roughly ¥400B.</li>
<li>In 9MFY26, the company reported revenue of ¥114.5B up 3% YoY, mainly driven by the overseas prescription drug business while the Salonpas focused OTC pharmaceutical products, revenue remained flat.</li>
<li>Given the fundamentals with new products gaining momentum, Salonpas getting back on track and overseas market growing the offer price of ¥6082 seems a decent exit opportunity at the moment.</li>
</ul>



Hisamitsu Pharmaceutical Co (4530 JP) announced MBO intending to take it private. The offer has been set at ¥6,082 per share which translates to an offer size of roughly ¥400B.
In 9MFY26, the company reported revenue of ¥114.5B up 3% YoY, mainly driven by the overseas prescription drug business while the Salonpas focused OTC pharmaceutical products, revenue remained flat.
Given the fundamentals with new products gaining momentum, Salonpas getting back on track and overseas market growing the offer price of ¥6082 seems a decent exit opportunity at the moment.


Hisamitsu Pharma (4530 JP): MBO at ¥6,082 Offers A Decent Exit Opportunity

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a> has recommended an MBO at JPY6,082, a 17.0% premium to the last close and in line with Bloomberg’s stated JPY450 billion valuation. </li>
<li>The offer is attractive compared to precedent transactions and peer multiples. The offer is struck at the midpoint of the IFA DCF valuation range. </li>
<li>The sheer number of irrevocables and the presence of several cross-holders will aid in deal completion. The tender closes on 19 February.</li>
</ul>



Hisamitsu Pharmaceutical Co (4530 JP) has recommended an MBO at JPY6,082, a 17.0% premium to the last close and in line with Bloomberg’s stated JPY450 billion valuation. 
The offer is attractive compared to precedent transactions and peer multiples. The offer is struck at the midpoint of the IFA DCF valuation range. 
The sheer number of irrevocables and the presence of several cross-holders will aid in deal completion. The tender closes on 19 February.


Hisamitsu Pharma (4530 JP): MBO at JPY6,082

Japan

ROHTO PHARMACEUTICAL CO., LTD. manufactures and markets pharmaceuticals and cosmetics products.  The Company's products include eyewash, bath soaps, gastrointestinal medicine, and hand cream.  Rohto Pharmaceutical also has a license agreement with its subsidiary, Mentholatum (US) to sell their brand products.  The Company also manufactures contact lenses and health foods.

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Rohto Pharmaceutical (4527 JP)

Yomeishu Seizo (2540 JP): Murakami’s Takeunder Is Self-Financing and a Done Deal

While the offer is marginally higher than KKR's offer (the highest received in an auction), the transaction's economics favour Murakami vs...

Arun George

Hisamitsu Pharma (4530 JP): Risk/Reward as Shares Trade Through Terms

The probability of a bump is low due to no visible activism, peers not re-rating, irrevocables, several crossholders, and the minimum can be...

Arun George

Mandom (4917 JP): CVC Outbids and Outmanoeuvres KKR

The Board recommends CVC's offer due to its higher price, acceptable financing, enhanced value plan, and shorter timelines. KKR could return with a...

Arun George

Hisamitsu Pharma (4530 JP): MBO at ¥6,082 Offers A Decent Exit Opportunity

Hisamitsu Pharmaceutical Co announced MBO to go private at ¥6,082 per share. Given the fundamentals the offer price seems a decent exit...

Tina Banerjee

Hisamitsu Pharma (4530 JP): MBO at JPY6,082

The offer is attractive. The sheer number of irrevocables and the presence of several cross-holders will aid in deal completion.

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Yomeishu Seizo (2540 JP): Murakami’s Takeunder Is Self-Financing and a Done Deal

While the offer is marginally higher than KKR's offer (the highest received in an auction), the transaction's economics favour Murakami vs...

Arun George

Hisamitsu Pharma (4530 JP): Risk/Reward as Shares Trade Through Terms

The probability of a bump is low due to no visible activism, peers not re-rating, irrevocables, several crossholders, and the minimum can be...

Arun George

Mandom (4917 JP): CVC Outbids and Outmanoeuvres KKR

The Board recommends CVC's offer due to its higher price, acceptable financing, enhanced value plan, and shorter timelines. KKR could return with a...

Arun George

Hisamitsu Pharma (4530 JP): MBO at ¥6,082 Offers A Decent Exit Opportunity

​Hisamitsu Pharmaceutical Co announced MBO to go private at ¥6,082 per share. Given the fundamentals the offer price seems a decent exit...

Tina Banerjee

Hisamitsu Pharma (4530 JP): MBO at JPY6,082

The offer is attractive. The sheer number of irrevocables and the presence of several cross-holders will aid in deal completion.

Arun George

Hisamitsu Pharmaceutical Co announced MBO to go private at ¥6,082 per share. Given the fundamentals the offer price seems a decent exit...