Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a> announced results to February. They were OK other than the non-cash writedown to the Fukuoka Green Building signalled on 14 April. </li>
<li>Guidance to August 2026 was lifted because of a lack of repair expenses to that building expected in the period. </li>
<li>Murakami bought more (23.8% as of 22 April, more now?). The Bidders said price and extension time (18 May) are final. This only gets done if they let Murakami join.</li>
</ul>



Sankei Real Estate (2972 JP) announced results to February. They were OK other than the non-cash writedown to the Fukuoka Green Building signalled on 14 April. 
Guidance to August 2026 was lifted because of a lack of repair expenses to that building expected in the period. 
Murakami bought more (23.8% as of 22 April, more now?). The Bidders said price and extension time (18 May) are final. This only gets done if they let Murakami join.


[Japan M&A/Activism] Sankei REIT (2972 JP) - Fukuoka Story Changes Again and Murakami Buys More

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/tosei-corp" target="_blank" data-smartkarma-citation="entities:11224:1" rel="noopener">Tosei Corp (8923 JP)</a>/GIC is attempting to use the Bain/MCJ playbook by indicating that the <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a> price and closing date (18 May) are final.</li>
<li>However, Tosei/GIC is unlikely to repeat Bain’s success, particularly given that Murakami entities' <a href="https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100Y0OC.pdf?sv=2020-08-04&amp;st=2026-04-28T09%3A11%3A01Z&amp;se=2031-04-28T15%3A00%3A00Z&amp;sr=b&amp;sp=rl&amp;sig=dRr7qkyot7Db97XXxgZ%2FRKDxL0E61ARlUt28huvjxkY%3D" target="_blank" rel="noopener">filing today</a> shows that its ownership increased to 22.75%. </li>
<li>It is likely the tender will fail. Murakami is likely looking to initiate an auction for all or part of Sankei RE post-deal break, replicating the FMH real estate auction.</li>
</ul>



Tosei Corp (8923 JP)/GIC is attempting to use the Bain/MCJ playbook by indicating that the Sankei Real Estate (2972 JP) price and closing date (18 May) are final.
However, Tosei/GIC is unlikely to repeat Bain’s success, particularly given that Murakami entities' filing today shows that its ownership increased to 22.75%. 
It is likely the tender will fail. Murakami is likely looking to initiate an auction for all or part of Sankei RE post-deal break, replicating the FMH real estate auction.


Sankei Real Estate (2972 JP): Murakami Adds as Tosei/GIC Goes for Broke

David Blennerhassett

<ul>
<li>I tally 23 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.</li>
<li>One new deal was discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Soul Patts (SOL AU)</a> &amp; Genesis Capital's NBIO for <a href="https://www.smartkarma.com/entities/monash-ivf-group-ltd" target="_blank" data-smartkarma-citation="entities:18130:1" rel="noopener">Monash IVF (MVF AU)</a>.</li>
<li>Key updates/news also took place on: <a href="https://www.smartkarma.com/entities/national-storage-reit" target="_blank" data-smartkarma-citation="entities:13762:1" rel="noopener">National Storage REIT (NSR AU)</a>, <a href="https://www.smartkarma.com/entities/magnetic-resources-nl" target="_blank" data-smartkarma-citation="entities:17051:1" rel="noopener">Magnetic Resources Nl (MAU AU)</a>, <a href="https://www.smartkarma.com/entities/evergrande-property-services" target="_blank" data-smartkarma-citation="entities:30921:1" rel="noopener">Evergrande Property Services (6666 HK)</a>, and <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a><a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener"></a>.</li>
</ul>


I tally 23 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
One new deal was discussed on Smartkarma this week: Soul Patts (SOL AU) &amp; Genesis Capital's NBIO for Monash IVF (MVF AU).
Key updates/news also took place on: National Storage REIT (NSR AU), Magnetic Resources Nl (MAU AU), Evergrande Property Services (6666 HK), and Sankei Real Estate (2972 JP).


Asia-Pac M&A Weekly Wrap: Monash IVF, National Storage, Evergrande Property, Sankei Real Estate

<ul>
<li>More than two months since their last filing, Murakami entities have <a href="https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XWAX.pdf?sv=2020-08-04&amp;st=2026-04-03T06%3A04%3A22Z&amp;se=2031-04-03T15%3A00%3A00Z&amp;sr=b&amp;sp=rl&amp;sig=0CzNjYfoKrUwn4ocZH6j9jtJ%2Bb%2Be58fE63Laa7zsB%2Fs%3D" target="_blank" rel="noopener">increased</a> their ownership in <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a> from 15.90% to 17.19%. </li>
<li>While the parties remain far from an agreement, Murakami’s renewed buying activity is a negotiating tactic to pressure Tosei/GIC into reaching one. </li>
<li>The most likely endgame is that Tosei/GIC gains Murakami’s support by marginally raising the offer (around 5%) and allowing it to partially reinvest in BidCo.</li>
</ul>


More than two months since their last filing, Murakami entities have increased their ownership in Sankei Real Estate (2972 JP) from 15.90% to 17.19%. 
While the parties remain far from an agreement, Murakami’s renewed buying activity is a negotiating tactic to pressure Tosei/GIC into reaching one. 
The most likely endgame is that Tosei/GIC gains Murakami’s support by marginally raising the offer (around 5%) and allowing it to partially reinvest in BidCo.


Sankei Real Estate (2972 JP): Murakami's Renewed Buying Increases the Odds of a Bump

<ul>
<li>Through a series of sob stories, <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a> wrote down the value of their biggest building (as of Feb 2025) last August because a tenant left. </li>
<li>Then they recently said they would have to pay more and wait longer to renovate or sell. Now 11 days later they are taking another writedown. And cancelling the dividend.</li>
<li>That marks the building down 96% from Feb-25 value. And the dividend is out. And Murakami-san owns 19% of a squeeze-able register. There may be no good outcome here.</li>
</ul>


Through a series of sob stories, Sankei Real Estate (2972 JP) wrote down the value of their biggest building (as of Feb 2025) last August because a tenant left. 
Then they recently said they would have to pay more and wait longer to renovate or sell. Now 11 days later they are taking another writedown. And cancelling the dividend.
That marks the building down 96% from Feb-25 value. And the dividend is out. And Murakami-san owns 19% of a squeeze-able register. There may be no good outcome here.


[Japan M&A/Activism] Sankei REIT (2972) Cancels Previously Announced End-Feb Div - Outcome Murkier

Japan

SANKEI REAL ESTATE Inc. operates as an investment company. The Company mainly invests in real estate development industries. SANKEI REAL ESTATE offers services in Japan.

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Sankei Real Estate (2972 JP)

[Japan M&A/Activism] Sankei REIT (2972 JP) - Fukuoka Story Changes Again and Murakami Buys More

Sankei REIT upped guidance and its dividend forecast to Aug26 on lower Fukuoka Green Building expenses and Murakami Group lifted their stake to...

Travis Lundy