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/sumitomo-riko-company-ltd" target="_blank" data-smartkarma-citation="entities:14955:1" rel="noopener">Sumitomo Riko Company (5191 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/sumitomo-electric-industries" target="_blank" data-smartkarma-citation="entities:10496:1" rel="noopener">Sumitomo Electric Industries (5802 JP)</a> at JPY2,600, a 20.6% premium to the undisturbed price.</li>
<li>The offer is arguably attractive as it is above the midpoint of the special committee/target IFA DCF valuation range and represents an all-time high. </li>
<li>The offer is light as it implies a discount to peer multiples. However, the significant cross-holders on the register suggest that the minimum tendering condition should be met. </li>
</ul>



Sumitomo Riko Company (5191 JP) has recommended a tender offer from Sumitomo Electric Industries (5802 JP) at JPY2,600, a 20.6% premium to the undisturbed price.
The offer is arguably attractive as it is above the midpoint of the special committee/target IFA DCF valuation range and represents an all-time high. 
The offer is light as it implies a discount to peer multiples. However, the significant cross-holders on the register suggest that the minimum tendering condition should be met. 


Sumitomo Riko (5191 JP): Sumitomo Electric (5802 JP)’s Tender Offer Is Light but Likely Done

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Today with the earnings announcement, <a href="https://www.smartkarma.com/entities/sumitomo-electric-industries" target="_blank" data-smartkarma-citation="entities:10496:1" rel="noopener">Sumitomo Electric Industries (5802 JP)</a> announced it would buy out minorities in <a href="https://www.smartkarma.com/entities/sumitomo-riko-company-ltd" target="_blank" data-smartkarma-citation="entities:14955:1" rel="noopener">Sumitomo Riko Company (5191 JP)</a>, its rubber products subsidiary. </li>
<li>The price is low, and especially so when one considers the significant net receivables and inventory number (about 2mos of revenue, but one turn of annual EBITDA).</li>
<li>Crossholders and insiders, however, own nearly 15% of the company, and that makes blocking this deal difficult, despite its low price, and lack of synergies considered in the price.</li>
</ul>


Today with the earnings announcement, Sumitomo Electric Industries (5802 JP) announced it would buy out minorities in Sumitomo Riko Company (5191 JP), its rubber products subsidiary. 
The price is low, and especially so when one considers the significant net receivables and inventory number (about 2mos of revenue, but one turn of annual EBITDA).
Crossholders and insiders, however, own nearly 15% of the company, and that makes blocking this deal difficult, despite its low price, and lack of synergies considered in the price.


[Japan M&A] Sumi Elec Buys Out Minorities in Sumitomo Riko (5191 JP) For ¥2,600 - Low Price/Multiple

Making sense of the Global Market, Euromonitor International Ltd.

Yu Mitsuhashi

Making sense of the Global Market

Euromonitor International Ltd.

We are a global market research company focused on industries, countries, economies and consumers worldwide. Our cross-country comparable research helps your organisation identify opportunities and develop growth strategies in countries and regions across the globe. With offices around the world, 1,200 analysts in 100 countries and market research on every key trend and driver, we give you powerful access to the real story behind consumer change.

Thematic (Sector/Industry)

<h2>Overview</h2>The industry’s production value declined in 2016, largely due to shrinking production output of tyres and other rubber products. Production of the aforementioned products declined due to weak demand for rubber products from automotive producers. In 2016 automotive manufacturers continued to outsource their production abroad, resulting in shrinking car production volumes in Japan and consequently weak OEM demand for tyres. To add, shrinking car production and hybridisation of cars eroded demand and production of rubber transmission belts.Production of tyres and other rubber parts is forecast to stagnate over 2016-2021. Weak domestic demand and automotive production outsourcing are set to hinder the rubber products industry’s performance. Furthermore, Japanese tyre manufacturers increasingly invest into production facilities in rapidly growing Asian and American markets, thus tyre production volumes in Japan are likely to stagnate.After a weak 2015 the construction industry’s spending on rubber products expanded in 2016. The increase was thanks to the rise in residential housing construction in 2016, infused by Japan’s Central Bank’s loose monetary policy and low interest rates on mortgages.The construction industry is forecast to provide a temporary demand boost for rubber piping, hoses, roofing and similar materials by 2020, as Japan prepares for the Tokyo Olympics. In total, JPY10 trillion is set to be invested into sporting, transportation and hotel infrastructure, with most of the gains expected over the period of 2017-2018.

OverviewThe industry’s production value declined in 2016, largely due to shrinking production output of tyres and other rubber products. Production of the aforementioned products declined due to weak demand for rubber products from automotive producers. In 2016 automotive manufacturers continued to outsource their production abroad, resulting in shrinking car production volumes in Japan and consequently weak OEM demand for tyres. To add, shrinking car production and hybridisation of cars eroded demand and production of rubber transmission belts.Production of tyres and other rubber parts is forecast to stagnate over 2016-2021. Weak domestic demand and automotive production outsourcing are set to hinder the rubber products industry’s performance. Furthermore, Japanese tyre manufacturers increasingly invest into production facilities in rapidly growing Asian and American markets, thus tyre production volumes in Japan are likely to stagnate.After a weak 2015 the construction industry’s spending on rubber products expanded in 2016. The increase was thanks to the rise in residential housing construction in 2016, infused by Japan’s Central Bank’s loose monetary policy and low interest rates on mortgages.The construction industry is forecast to provide a temporary demand boost for rubber piping, hoses, roofing and similar materials by 2020, as Japan prepares for the Tokyo Olympics. In total, JPY10 trillion is set to be invested into sporting, transportation and hotel infrastructure, with most of the gains expected over the period of 2017-2018.

Industrial Capsule: Rubber Products in Japan

David Blennerhassett

<ul>
<li>I tally xx - 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>Four new (ish) deals were discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/360-capital-group-ltd" target="_blank" data-smartkarma-citation="entities:11865:1" rel="noopener">360 Capital (TGP AU)</a>, <a href="https://www.smartkarma.com/entities/humm-group" target="_blank" data-smartkarma-citation="entities:35366:1" rel="noopener">Humm Group (HUM AU)</a> , <a href="https://www.smartkarma.com/entities/hogy-medical-co-ltd" target="_blank" data-smartkarma-citation="entities:10493:1" rel="noopener">Hogy Medical (3593 JP)</a>, and <a href="https://www.smartkarma.com/entities/medical-data-vision-co-ltd" target="_blank" data-smartkarma-citation="entities:8367:1" rel="noopener">Medical Data Vision (3902 JP)</a>.</li>
<li>Key updates/news also took place on: <a href="https://www.smartkarma.com/entities/predictive-discovery-ltd" target="_blank" data-smartkarma-citation="entities:15374:1" rel="noopener">Predictive Discovery (PDI AU)</a>, <a href="https://www.smartkarma.com/entities/renew-energy-global-plc" target="_blank" data-smartkarma-citation="entities:37038:1" rel="noopener">ReNew Energy Global (RNW US)</a>, and <a href="https://www.smartkarma.com/entities/mandom-corp" target="_blank" data-smartkarma-citation="entities:8353:1" rel="noopener">Mandom Corp (4917 JP)</a> </li>
</ul>


I tally xx - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
Four new (ish) deals were discussed on Smartkarma this week: 360 Capital (TGP AU), Humm Group (HUM AU) , Hogy Medical (3593 JP), and Medical Data Vision (3902 JP).
Key updates/news also took place on: Predictive Discovery (PDI AU), ReNew Energy Global (RNW US), and Mandom Corp (4917 JP) 


Asia-Pac M&A Weekly Wrap: Mandom Humm, Medical Data Vision, Predictive Disc., ReNew Energy Global

<ul>
<li>Back on the 22nd October, PE outfit Adamantem Capital firmed its Offer for <a href="https://www.smartkarma.com/entities/apiam-animal-health-ltd" target="_blank" data-smartkarma-citation="entities:26109:1" rel="noopener">Apiam Animal Health (AHX AU)</a>, Australia's largest rural and regional veterinary group.</li>
<li>The A$0.87/share Offer Price was a 64.5% premium to last close. This included a permitted fully franked dividend up to A$0.10/share. Mix &amp; match options are afforded, including 100% scrip.</li>
<li>
<a href="https://announcements.asx.com.au/asxpdf/20251212/pdf/06t8y2p0w1dc35.pdf" target="_blank" rel="noopener">The Scheme Booklet is now out</a>, with a Scheme Meeting on the 3rd February, and expected implementation on the 23rd Feb 2026. The IE (Kroll) says "fair &amp; reasonable".</li>
</ul>


Back on the 22nd October, PE outfit Adamantem Capital firmed its Offer for Apiam Animal Health (AHX AU), Australia's largest rural and regional veterinary group.
The A$0.87/share Offer Price was a 64.5% premium to last close. This included a permitted fully franked dividend up to A$0.10/share. Mix &amp; match options are afforded, including 100% scrip.

The Scheme Booklet is now out, with a Scheme Meeting on the 3rd February, and expected implementation on the 23rd Feb 2026. The IE (Kroll) says "fair &amp; reasonable".


Apiam Animal Health (AHX AU): 3rd Feb Vote On Adamantem's A$0.87/Share Offer

Japan

Sumitomo Riko Company Limited produces rubber and other synthetic resin products.  The Company supplies automakers with its main rubber products, such as anti-vibration rubber and hoses for automobiles.

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Sumitomo Riko Company (5191 JP)

Sumitomo Riko (5191 JP): Sumitomo Electric (5802 JP)’s Tender Offer Is Light but Likely Done

The offer is light as it implies a discount to peer multiples. However, the significant cross-holders on the register suggest that the minimum...

Arun George

[Japan M&A] Sumi Elec Buys Out Minorities in Sumitomo Riko (5191 JP) For ¥2,600 - Low Price/Multiple

Sumitomo Electric announced it would buy out minorities in automotive rubber products subsidiary Sumitomo Riko today. The price is pretty light,...

Travis Lundy

Industrial Capsule: Rubber Products in Japan

OverviewThe industry’s production value declined in 2016, largely due to shrinking production output of tyres and other rubber products. Production...

Euromonitor International Ltd.

Asia-Pac M&A Weekly Wrap: Mandom Humm, Medical Data Vision, Predictive Disc., ReNew Energy Global

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sumitomo Riko (5191 JP): Sumitomo Electric (5802 JP)’s Tender Offer Is Light but Likely Done

The offer is light as it implies a discount to peer multiples. However, the significant cross-holders on the register suggest that the minimum...

Arun George

[Japan M&A] Sumi Elec Buys Out Minorities in Sumitomo Riko (5191 JP) For ¥2,600 - Low Price/Multiple

Sumitomo Electric announced it would buy out minorities in automotive rubber products subsidiary Sumitomo Riko today. The price is pretty light,...

Travis Lundy

Industrial Capsule: Rubber Products in Japan

OverviewThe industry’s production value declined in 2016, largely due to shrinking production output of tyres and other rubber products. Production...

Euromonitor International Ltd.

Asia-Pac M&A Weekly Wrap: Mandom Humm, Medical Data Vision, Predictive Disc., ReNew Energy Global

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Apiam Animal Health (AHX AU): 3rd Feb Vote On Adamantem's A$0.87/Share Offer

Clean deal. Trading at terms. Unless in - and/or can take advantage of the franking credits - I would be looking elsewhere.

David Blennerhassett