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>On 24 July, 3D Investment Partners proposed to privatise <a href="https://www.smartkarma.com/entities/tohokushinsha-film-corp" target="_blank" data-smartkarma-citation="entities:15129:1" rel="noopener">Tohokushinsha Film (2329 JP)</a> through a tender offer at JPY600-650 per share. A special committee will evaluate the proposal. </li>
<li>3D’s privatisation plan, in its current terms, is a non-starter as the price is low, and its activism campaign has so far been met with the Board’s scepticism.</li>
<li>The possible scenarios are that a white knight emerges to buy 3D’s stake/launch a counteroffer, 3D bumps the offer price, or the Board introduces a more ambitious MTM plan.</li>
</ul>


On 24 July, 3D Investment Partners proposed to privatise Tohokushinsha Film (2329 JP) through a tender offer at JPY600-650 per share. A special committee will evaluate the proposal. 
3D’s privatisation plan, in its current terms, is a non-starter as the price is low, and its activism campaign has so far been met with the Board’s scepticism.
The possible scenarios are that a white knight emerges to buy 3D’s stake/launch a counteroffer, 3D bumps the offer price, or the Board introduces a more ambitious MTM plan.


Tohokushinsha Film (2329 JP): Potential Scenarios as 3D Lobs a Privatisation Proposal

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>3D Investment Partners, known to be activist-ish-y, purchased 18% of <a href="https://www.smartkarma.com/entities/tohokushinsha-film-corp" target="_blank" data-smartkarma-citation="entities:15129:1" rel="noopener">Tohokushinsha Film (2329 JP)</a> in the 12 months to March 2024. They started a public activism campaign in February.</li>
<li>The company has started down a better governance track, but now 3D has made a takeover proposal to Tohokushinsha, which will consider it under Special Committee.</li>
<li>There are a couple of possible outcomes here which are interesting to consider. There are no other spoilers possible except those friendly to founders and management.</li>
</ul>


3D Investment Partners, known to be activist-ish-y, purchased 18% of Tohokushinsha Film (2329 JP) in the 12 months to March 2024. They started a public activism campaign in February.
The company has started down a better governance track, but now 3D has made a takeover proposal to Tohokushinsha, which will consider it under Special Committee.
There are a couple of possible outcomes here which are interesting to consider. There are no other spoilers possible except those friendly to founders and management.


Tohokushinsha (2329 JP) - 3D Investment Partners Proposes Take-Private

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

NTT (Nippon Telegraph & Telephone) / Equity Bottom-Up

NTT senior management has been called out for entertaining Ministry of Industry Affairs and Communications (MIC, the regulator) officials at least four times over the last three years. The amounts are not obscene but they do well exceed government limits and the optics are particularly bad for both the regulator (not its first scandal) and NTT (busy shaking up the industry). That does not mean there will be any direct consequences but it does strengthen the case made by rivals <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI Corp (9433 JP)</a> and <a href="https://www.smartkarma.com/entities/softbank-corp" target="_blank" data-smartkarma-citation="entities:27445:1" rel="noopener">Softbank Corp (9434 JP)</a>  that regulatory proposals from NTT post the DoCoMo buy-in will need to be closely scrutinized.

NTT senior management has been called out for entertaining Ministry of Industry Affairs and Communications (MIC, the regulator) officials at least four times over the last three years. The amounts are not obscene but they do well exceed government limits and the optics are particularly bad for both the regulator (not its first scandal) and NTT (busy shaking up the industry). That does not mean there will be any direct consequences but it does strengthen the case made by rivals KDDI Corp (9433 JP) and Softbank Corp (9434 JP)  that regulatory proposals from NTT post the DoCoMo buy-in will need to be closely scrutinized. 

NTT - Illegally Entertaining Your Regulator Is a Bad Look

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

This is a small (market cap Y34bn) film production company, 42% of revenue comes from making ads, 21% from making its own films and/or TV programmes as well as dubbing and subtitle work and  25% from broadcasting (it owns differing stakes in 12 channels including the History Channel, Star Channel and the Playboy channel). In terms of profits, advertising and content are the key drivers but broadcasting should recover over the medium term. This year operating profit is forecast at Y2.9bn vs…

This is a small (market cap Y34bn) film production company, 42% of revenue comes from making ads, 21% from making its own films and/or TV programmes as well as dubbing and subtitle work and  25% from broadcasting (it owns differing stakes in 12 channels including the History Channel, Star Channel and the Playboy channel). In terms of profits, advertising and content are the key drivers but broadcasting should recover over the medium term. This year operating profit is forecast at Y2.9bn vs…

Tohokushinsha (2329) - A Cheap Media Play

This is a small (market cap Y35bn) film production company, 37% of revenue comes from making ads, 23% from making its own films and/or TV programmes as well as dubbing and subtitle work and  17% from broadcasting (it owns differing stakes in 12 channels including the History Channel, Star Channel and the Playboy channel). In terms of profits, advertising and content are the key drivers but broadcasting should recover over the medium term. This year operating profit is forecast at Y3.8bn (up from…

This is a small (market cap Y35bn) film production company, 37% of revenue comes from making ads, 23% from making its own films and/or TV programmes as well as dubbing and subtitle work and  17% from broadcasting (it owns differing stakes in 12 channels including the History Channel, Star Channel and the Playboy channel). In terms of profits, advertising and content are the key drivers but broadcasting should recover over the medium term. This year operating profit is forecast at Y3.8bn (up from…

Small Cap with Growth and Significant Value.

Japan

TOHOKUSHINSHA FILM CORPORATION plans and produces TV programs, movies, and commercial films.  The Company also provides satellite broadcasting and distributes licensing rights to domestic and foreign media companies.

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Tohokushinsha Film (2329 JP)