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>Murakami's City Index Fifth has launched a JPY125,000-per-unit tender (a 16.6% premium to the last close) for <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>. That matches Tosei/GIC's failed offer, which Murakami blocked.</li>
<li>Murakami’s terms are weaker than Tosei/GIC: 1.10x P/NAV versus 1.15x, no price negotiation, a neutral board, no majority-of-minority condition and a vaguer commitment on rival bids.</li>
<li>The squeeze-out vote relies on low turnout and passives. However, the 25.42% minimum looks reachable (24.66% tendered last time, plus 10.32% irrevocables). </li>
</ul>


Murakami's City Index Fifth has launched a JPY125,000-per-unit tender (a 16.6% premium to the last close) for Sankei Real Estate (2972 JP). That matches Tosei/GIC's failed offer, which Murakami blocked.
Murakami’s terms are weaker than Tosei/GIC: 1.10x P/NAV versus 1.15x, no price negotiation, a neutral board, no majority-of-minority condition and a vaguer commitment on rival bids.
The squeeze-out vote relies on low turnout and passives. However, the 25.42% minimum looks reachable (24.66% tendered last time, plus 10.32% irrevocables). 


Sankei Real Estate (2972 JP): Murakami Revives the Tosei/GIC’s Failed Tender on Weaker Terms

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>In January, <a href="https://www.smartkarma.com/entities/tosei-corp" target="_blank" data-smartkarma-citation="entities:11224:1" rel="noopener">Tosei Corp (8923 JP)</a> and GIC launched a TOB on <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>, the REIT of sponsor Sankei Building, a subsidiary of targeted/beleaguered Fuji Media (4676). </li>
<li>Murakami-San bought a large stake in the REIT, first sending the price up, then blocking the deal. A Fukuoka-based building was written down hard, a dividend promised was revoked.</li>
<li>Post deal-fail, REITs fell as interest rates rose. Murakami-san negotiated with the REIT and its Special Committee. The Fukuoka Green Building is sold.</li>
</ul>


In January, Tosei Corp (8923 JP) and GIC launched a TOB on Sankei Real Estate (2972 JP), the REIT of sponsor Sankei Building, a subsidiary of targeted/beleaguered Fuji Media (4676). 
Murakami-San bought a large stake in the REIT, first sending the price up, then blocking the deal. A Fukuoka-based building was written down hard, a dividend promised was revoked.
Post deal-fail, REITs fell as interest rates rose. Murakami-san negotiated with the REIT and its Special Committee. The Fukuoka Green Building is sold.


[Japan M&A] Murakami Launches Tender on Sankei Real Estate (2972 JP) At ¥125,000/Unit

<ul>
<li>After the close, 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> Takeover Bidders announced an Extension from 19 Feb through 6 March 2026. They also announced all holders would get the dividends.</li>
<li>That is an extra ¥2,773/unit, as discussed might be the outcome yesterday in <a href="https://www.smartkarma.com/insights/japan-m-a-activism-murakami-bought" target="_blank" data-smartkarma-citation="insights:222167" rel="noopener">[Japan M&amp;A/Activism] Murakami Bought, Squeezed, Now Tender Closing</a>. For now, that's the bump.</li>
<li>But there has been no mention of Murakami. That made me wonder what he was looking at. I dug more (I should have before), and I think I see it.</li>
</ul>


After the close, the Sankei Real Estate (2972 JP) Takeover Bidders announced an Extension from 19 Feb through 6 March 2026. They also announced all holders would get the dividends.
That is an extra ¥2,773/unit, as discussed might be the outcome yesterday in [Japan M&amp;A/Activism] Murakami Bought, Squeezed, Now Tender Closing. For now, that's the bump.
But there has been no mention of Murakami. That made me wonder what he was looking at. I dug more (I should have before), and I think I see it.


[Japan M&A/Activism] Sankei REIT (2972 JP) - Deal Extended, Div Added (2.2% "Bump") BUT... Murakami!

<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

<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

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)