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/makino-milling-machine-co" target="_blank" data-smartkarma-citation="entities:5200:1" rel="noopener">Makino Milling Machine Co (6135 JP)</a> has disclosed that it has received initial letters of intent from multiple third parties, reportedly private equity funds, to launch a competing tender offer.</li>
<li>My analysis suggests that a white knight bid could be as high as JPY13,284, 20.8% higher than Nidec’s JPY11,000 offer and 10.2% higher than the last close price of JPY12,050.</li>
<li>
<a href="https://www.smartkarma.com/entities/nidec-corp" target="_blank" data-smartkarma-citation="entities:7245:1" rel="noopener">Nidec Corp (6594 JP)</a> will take a wait-and-see approach. However, regardless of whether a white knight bidder emerges, Nidec will eventually have to bump.</li>
</ul>



Makino Milling Machine Co (6135 JP) has disclosed that it has received initial letters of intent from multiple third parties, reportedly private equity funds, to launch a competing tender offer.
My analysis suggests that a white knight bid could be as high as JPY13,284, 20.8% higher than Nidec’s JPY11,000 offer and 10.2% higher than the last close price of JPY12,050.

Nidec Corp (6594 JP) will take a wait-and-see approach. However, regardless of whether a white knight bidder emerges, Nidec will eventually have to bump.


Makino Milling Machine (6135 JP): A White Knight Bidder Is Emerging

<ul>
<li>On 27 December, <a href="https://www.smartkarma.com/entities/nidec-corp" target="_blank" data-smartkarma-citation="entities:7245:1" rel="noopener">Nidec Corp (6594 JP)</a> announced a hostile preconditional tender offer for <a href="https://www.smartkarma.com/entities/makino-milling-machine-co" target="_blank" data-smartkarma-citation="entities:5200:1" rel="noopener">Makino Milling Machine Co (6135 JP)</a> at JPY11,000 per share.</li>
<li>The Board has raised several issues with the Nidec proposal through two questionnaires. Some assertions are valid, while others do not stand up to scrutiny.</li>
<li>The Board has launched an ambitious MTM plan to thwart the offer and hinted at potential competing offers. Nidec’s offer increasingly needs a bump. </li>
</ul>


On 27 December, Nidec Corp (6594 JP) announced a hostile preconditional tender offer for Makino Milling Machine Co (6135 JP) at JPY11,000 per share.
The Board has raised several issues with the Nidec proposal through two questionnaires. Some assertions are valid, while others do not stand up to scrutiny.
The Board has launched an ambitious MTM plan to thwart the offer and hinted at potential competing offers. Nidec’s offer increasingly needs a bump. 


Makino Milling Machine (6135 JP): State of Play

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>There has been no end to the tragic incidents of people losing their lives due to long working hours. I will try to think about this case.</li>
<li>I believe this issue is not just a matter of how to work, but also a human rights issue that calls into question whether we are treating employees as human.</li>
<li>The "S" in ESG does not refer to each issue, but rather to how seriously the company addresses and tackles the fundamental human rights issue first.</li>
</ul>


There has been no end to the tragic incidents of people losing their lives due to long working hours. I will try to think about this case.
I believe this issue is not just a matter of how to work, but also a human rights issue that calls into question whether we are treating employees as human.
The "S" in ESG does not refer to each issue, but rather to how seriously the company addresses and tackles the fundamental human rights issue first.


Japan's Governance: Human Rights and Long Working Hours Issues: Sodick (6143)

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

Forecasts are conservative, the shares are on about 11x this and it looks to us that profits will continue to grow over the next 2 years. There is a chance that some of the 12% outstanding it owns in itself may be cancelled as well. We are happy to buy the shares here. 70% of Sodick’s sales are electro-discharge machines (EDM’s). These are used to make molds or die casts, in particular plastic molds for very small and sophisticated products. The company has a 30% global share competing with…

Forecasts are conservative, the shares are on about 11x this and it looks to us that profits will continue to grow over the next 2 years. There is a chance that some of the 12% outstanding it owns in itself may be cancelled as well. We are happy to buy the shares here. 70% of Sodick’s sales are electro-discharge machines (EDM’s). These are used to make molds or die casts, in particular plastic molds for very small and sophisticated products. The company has a 30% global share competing with…

Japan

Sodick Co., Ltd. develops, manufactures, and sells electric machines and equipment.  The Company's product line includes computerized numerical control electrical discharge machine (EDM), super high precision wire cut EDM, CAD/CAM system for mold design and production, injection molding machine, and high speed manual drilling machine.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sodick Co Ltd (6143 JP)

Makino Milling Machine (6135 JP): A White Knight Bidder Is Emerging

My analysis suggests that a white knight bid could be as high as JPY13,284, 20.8% higher than Nidec’s JPY11,000 offer and 10.2% higher than the...

Arun George

Makino Milling Machine (6135 JP): State of Play

The Board has launched an ambitious MTM plan to thwart the offer and hinted at potential competing offers. Nidec’s offer increasingly needs a bump.

Arun George

Japan's Governance: Human Rights and Long Working Hours Issues: Sodick (6143)

There are many companies that mention work-life balance in the ESG statements. I think it is important to seriously address the fundamental issue...

Metrical Inc

Sodick (6143) - Still a BUY

Forecasts are conservative, the shares are on about 11x this and it looks to us that profits will continue to grow over the next 2 years. There is...

Pearl Hill Advisors

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)