Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>There was an article in mid-May saying <a href="https://www.smartkarma.com/entities/technopro-holdings-inc" target="_blank" data-smartkarma-citation="entities:6955:1" rel="noopener">Technopro Holdings (6028 JP)</a> might be privatised. It is an appropriate candidate. The stock popped 20% immediately, and has since risen another 20%. </li>
<li>Today's article follows one which came out ~2 weeks ago with non-sourced editorial content suggesting the price might be 20x EBITDA (i.e. a lot higher). </li>
<li>Today, an article says Blackstone will buy the firm for "Roughly ¥500bn" which would be 3% down from yesterday. Beware the Nikkei. Beware expectations.</li>
</ul>


There was an article in mid-May saying Technopro Holdings (6028 JP) might be privatised. It is an appropriate candidate. The stock popped 20% immediately, and has since risen another 20%. 
Today's article follows one which came out ~2 weeks ago with non-sourced editorial content suggesting the price might be 20x EBITDA (i.e. a lot higher). 
Today, an article says Blackstone will buy the firm for "Roughly ¥500bn" which would be 3% down from yesterday. Beware the Nikkei. Beware expectations.


[Japan M&A] Nikkei Says Blackstone to Buy TechnoPro Holdings (6028) For "Roughly ¥500bn"

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>The <a href="https://finance.yahoo.com/news/blackstone-acquire-japans-technopro-3-094830609.html" target="_blank" rel="noopener">Nikkei reports</a> that <a href="https://www.smartkarma.com/entities/blackstone-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone (BX US)</a> will launch the tender offer for <a href="https://www.smartkarma.com/entities/technopro-holdings-inc" target="_blank" data-smartkarma-citation="entities:6955:1" rel="noopener">Technopro Holdings (6028 JP)</a> just below JPY4,900, a 44.6% premium to the undisturbed price.</li>
<li>While the rumoured offer is 1.5% below the last close, it is attractive as it resulted from an auction and represents a pre-media rumour all-time high.</li>
<li>It is unclear if the offer is preconditional on regulatory approvals. Blackstone is likely to secure irrevocables from activists like Orbis to project a secure path to completion. </li>
</ul>


The Nikkei reports that Blackstone (BX US) will launch the tender offer for Technopro Holdings (6028 JP) just below JPY4,900, a 44.6% premium to the undisturbed price.
While the rumoured offer is 1.5% below the last close, it is attractive as it resulted from an auction and represents a pre-media rumour all-time high.
It is unclear if the offer is preconditional on regulatory approvals. Blackstone is likely to secure irrevocables from activists like Orbis to project a secure path to completion. 


TechnoPro (6028 JP): Blackstone’s Rumoured Takeunder Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/technopro-holdings-inc" target="_blank" data-smartkarma-citation="entities:6955:1" rel="noopener">Technopro Holdings (6028 JP)</a>  shares were up 20.7% on Friday based on a Mergermarket report that is conducting a privatisation auction with bids due in six weeks.</li>
<li>Technopro responded that it has been continuously exploring various strategic alternatives, including privatisation, to enhance shareholder value. TechnoPro has the characteristics to make a good privatisation target. </li>
<li>The precedent is Bain's privatisation of <a href="https://www.smartkarma.com/entities/outsourcing-inc" target="_blank" data-smartkarma-citation="entities:7431:1" rel="noopener">Outsourcing Inc (2427 JP)</a> at a forward EV/EBITDA multiple of 13.5x. A similar multiple implies a JPY4,400 offer. TechnoPro can justify a higher multiple. </li>
</ul>



Technopro Holdings (6028 JP)  shares were up 20.7% on Friday based on a Mergermarket report that is conducting a privatisation auction with bids due in six weeks.
Technopro responded that it has been continuously exploring various strategic alternatives, including privatisation, to enhance shareholder value. TechnoPro has the characteristics to make a good privatisation target. 
The precedent is Bain's privatisation of Outsourcing Inc (2427 JP) at a forward EV/EBITDA multiple of 13.5x. A similar multiple implies a JPY4,400 offer. TechnoPro can justify a higher multiple. 


TechnoPro (6028 JP): A Good Privatisation Candidate

<ul>
<li>
<a href="https://www.smartkarma.com/entities/technopro-holdings-inc" target="_blank" data-smartkarma-citation="entities:6955:1" rel="noopener">Technopro Holdings (6028 JP)</a> is a temp/contract staffing platform which specialises in engineering staff (IT engineers far more than machinery, construction, chemicals). The company has been growing.</li>
<li>Overnight, an article appeared in MergerMarket - a high-dollar M&amp;A-related news service - saying the company was going through a sale process. The company confirmed it was one possibility.</li>
<li>The stock went limit up. This quick writeup looks at the framework of the idea, and possibilities.</li>
</ul>



Technopro Holdings (6028 JP) is a temp/contract staffing platform which specialises in engineering staff (IT engineers far more than machinery, construction, chemicals). The company has been growing.
Overnight, an article appeared in MergerMarket - a high-dollar M&amp;A-related news service - saying the company was going through a sale process. The company confirmed it was one possibility.
The stock went limit up. This quick writeup looks at the framework of the idea, and possibilities.


[Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs

<ul>
<li>
<a href="https://www.smartkarma.com/entities/forum-engineering-inc" target="_blank" data-smartkarma-citation="entities:28896:1" rel="noopener">Forum Engineering Inc (7088 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/kkr-co-inc" target="_blank" data-smartkarma-citation="entities:27333:1" rel="noopener">KKR &amp; Co (KKR US)</a> at JPY1,710, a 32.6% premium to the last close price.</li>
<li>The offer is arguably light due to a lack of an auction and is below the midpoint of the target IFA DCF valuation range. </li>
<li>However, the offer is attractive compared to precedent transactions, peer multiples and represents an all-time high. The large number of cross-holders will help meet the required tendering rate.</li>
</ul>



Forum Engineering Inc (7088 JP) has recommended a tender offer from KKR &amp; Co (KKR US) at JPY1,710, a 32.6% premium to the last close price.
The offer is arguably light due to a lack of an auction and is below the midpoint of the target IFA DCF valuation range. 
However, the offer is attractive compared to precedent transactions, peer multiples and represents an all-time high. The large number of cross-holders will help meet the required tendering rate.


Forum Engineering (7088 JP): KKR’s Tender Offer at JPY1,710

Japan

TechnoPro Holdings, Inc. offers services and solutions in mechanical and electronic design, IT and software development, and wide range of technological fields through outsourcing. The Company also has presence in biological, chemical and construction management businesses.

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Technopro Holdings (6028 JP)

[Japan M&A] Nikkei Says Blackstone to Buy TechnoPro Holdings (6028) For "Roughly ¥500bn"

We appear to have a deal at "roughly ¥500bn" (here, a little lower, a little higher) by Blackstone. The price will be fair-ish if the auction was...

Travis Lundy

TechnoPro (6028 JP): Blackstone’s Rumoured Takeunder Offer

While the rumoured offer is 1.5% below the last close, it is attractive as it resulted from an auction and represents a pre-media rumour all-time...

Arun George

TechnoPro (6028 JP): A Good Privatisation Candidate

Precedent transaction multiples imply a JPY4,400 offer. TechnoPro can justify a higher multiple due to its market-leading position and solid...

Arun George

[Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs

A specialist M&A news service suggests TechnoPro Holdings may be a take-private candidate with bids due in 6 weeks. It doesn't not make sense. I...

Travis Lundy

Forum Engineering (7088 JP): KKR’s Tender Offer at JPY1,710

While the offer is arguably light, as it falls below the midpoint of the IFA DCF range, it remains attractive compared to precedent transactions,...

Arun George

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