IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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

Hisamitsu Pharmaceutical Co / Event-Driven

<ul>
<li>Since announcing the offer, <a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a>’s shares have traded consistently above the MBO offer price of JPY6,082. The offer closes on 19 February. </li>
<li>While there was no auction, the offer is reasonable. The spate of recent MBOs that attracted activists successfully securing better terms may also be behind the share price action.</li>
<li>The probability of a bump is low due to no visible activism, peers not re-rating, irrevocables, several crossholders, and the minimum can be lowered. Take profits.  </li>
</ul>


Since announcing the offer, Hisamitsu Pharmaceutical Co (4530 JP)’s shares have traded consistently above the MBO offer price of JPY6,082. The offer closes on 19 February. 
While there was no auction, the offer is reasonable. The spate of recent MBOs that attracted activists successfully securing better terms may also be behind the share price action.
The probability of a bump is low due to no visible activism, peers not re-rating, irrevocables, several crossholders, and the minimum can be lowered. Take profits.  


Hisamitsu Pharma (4530 JP): Risk/Reward as Shares Trade Through Terms

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a> announced MBO intending to take it private. The offer has been set at ¥6,082 per share which translates to an offer size of roughly ¥400B.</li>
<li>In 9MFY26, the company reported revenue of ¥114.5B up 3% YoY, mainly driven by the overseas prescription drug business while the Salonpas focused OTC pharmaceutical products, revenue remained flat.</li>
<li>Given the fundamentals with new products gaining momentum, Salonpas getting back on track and overseas market growing the offer price of ¥6082 seems a decent exit opportunity at the moment.</li>
</ul>



Hisamitsu Pharmaceutical Co (4530 JP) announced MBO intending to take it private. The offer has been set at ¥6,082 per share which translates to an offer size of roughly ¥400B.
In 9MFY26, the company reported revenue of ¥114.5B up 3% YoY, mainly driven by the overseas prescription drug business while the Salonpas focused OTC pharmaceutical products, revenue remained flat.
Given the fundamentals with new products gaining momentum, Salonpas getting back on track and overseas market growing the offer price of ¥6082 seems a decent exit opportunity at the moment.


Hisamitsu Pharma (4530 JP): MBO at ¥6,082 Offers A Decent Exit Opportunity

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a> has recommended an MBO at JPY6,082, a 17.0% premium to the last close and in line with Bloomberg’s stated JPY450 billion valuation. </li>
<li>The offer is attractive compared to precedent transactions and peer multiples. The offer is struck at the midpoint of the IFA DCF valuation range. </li>
<li>The sheer number of irrevocables and the presence of several cross-holders will aid in deal completion. The tender closes on 19 February.</li>
</ul>



Hisamitsu Pharmaceutical Co (4530 JP) has recommended an MBO at JPY6,082, a 17.0% premium to the last close and in line with Bloomberg’s stated JPY450 billion valuation. 
The offer is attractive compared to precedent transactions and peer multiples. The offer is struck at the midpoint of the IFA DCF valuation range. 
The sheer number of irrevocables and the presence of several cross-holders will aid in deal completion. The tender closes on 19 February.


Hisamitsu Pharma (4530 JP): MBO at JPY6,082

<ul>
<li>Bloomberg reported that an entity owned by the CEO is considering an MBO of <a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a> at a valuation of around JPY450 billion.</li>
<li>Assuming that the rumoured valuation refers to market cap based on outstanding shares, it suggests an offer around JPY6,000, a 15.4% premium to the last close.</li>
<li>Hisamitsu confirmed that it plans to announce an MBO today. An offer of JPY6,000 is attractive compared to precedent transactions and peer multiples.  </li>
</ul>


Bloomberg reported that an entity owned by the CEO is considering an MBO of Hisamitsu Pharmaceutical Co (4530 JP) at a valuation of around JPY450 billion.
Assuming that the rumoured valuation refers to market cap based on outstanding shares, it suggests an offer around JPY6,000, a 15.4% premium to the last close.
Hisamitsu confirmed that it plans to announce an MBO today. An offer of JPY6,000 is attractive compared to precedent transactions and peer multiples.  


Hisamitsu Pharma (4530 JP): An Imminent MBO at a Rumoured JPY450 Billion Valuation

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tsumura-co" target="_blank" data-smartkarma-citation="entities:8042:1" rel="noopener">Tsumura &amp; Co (4540 JP)</a> shocked everyone a year ago when they announced an immediate large price hike across the board for its kampo medicines. The stock was +35% immediately.</li>
<li>It did not fall back. Now the stock is up 60% from a year ago and earnings are too. It's still &lt;10x PER. Now we get a ¥10bn secondary offering.</li>
<li>It's 12 days of ADV but not super heavy, and there is a buyback on the back end.</li>
</ul>



Tsumura &amp; Co (4540 JP) shocked everyone a year ago when they announced an immediate large price hike across the board for its kampo medicines. The stock was +35% immediately.
It did not fall back. Now the stock is up 60% from a year ago and earnings are too. It's still &lt;10x PER. Now we get a ¥10bn secondary offering.
It's 12 days of ADV but not super heavy, and there is a buyback on the back end.


Tsumura (4540 JP) Equity Offering - Easy To Swallow, and Not Expensive

Japan

TSUMURA & CO. manufactures and sells pharmaceutical products including Chinese medicines.  The Company also manufactures and sells bathing products, cosmetics, and other healthcare and toiletry products.  Tsumura & Co. sells its products in Japan and overseas markets.

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Tsumura & Co (4540 JP)

Hisamitsu Pharma (4530 JP): Risk/Reward as Shares Trade Through Terms

The probability of a bump is low due to no visible activism, peers not re-rating, irrevocables, several crossholders, and the minimum can be...

Arun George

Hisamitsu Pharma (4530 JP): MBO at ¥6,082 Offers A Decent Exit Opportunity

Hisamitsu Pharmaceutical Co announced MBO to go private at ¥6,082 per share. Given the fundamentals the offer price seems a decent exit...

Tina Banerjee

Hisamitsu Pharma (4530 JP): MBO at JPY6,082

The offer is attractive. The sheer number of irrevocables and the presence of several cross-holders will aid in deal completion.

Arun George

Hisamitsu Pharma (4530 JP): An Imminent MBO at a Rumoured JPY450 Billion Valuation

Hisamitsu confirmed that it plans to announce an MBO today. An offer at the rumoured JPY450bn valuation is attractive compared to precedent...

Arun George

Tsumura (4540 JP) Equity Offering - Easy To Swallow, and Not Expensive

Tsumura today announced a secondary offering selldown by a couple of corporate crossholders and several banks. There will be more to come later,...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hisamitsu Pharma (4530 JP): Risk/Reward as Shares Trade Through Terms

The probability of a bump is low due to no visible activism, peers not re-rating, irrevocables, several crossholders, and the minimum can be...

Arun George

Hisamitsu Pharma (4530 JP): MBO at ¥6,082 Offers A Decent Exit Opportunity

​Hisamitsu Pharmaceutical Co announced MBO to go private at ¥6,082 per share. Given the fundamentals the offer price seems a decent exit...

Tina Banerjee

Hisamitsu Pharma (4530 JP): MBO at JPY6,082

The offer is attractive. The sheer number of irrevocables and the presence of several cross-holders will aid in deal completion.

Arun George

Hisamitsu Pharma (4530 JP): An Imminent MBO at a Rumoured JPY450 Billion Valuation

Hisamitsu confirmed that it plans to announce an MBO today. An offer at the rumoured JPY450bn valuation is attractive compared to precedent...

Arun George

Tsumura (4540 JP) Equity Offering - Easy To Swallow, and Not Expensive

Tsumura today announced a secondary offering selldown by a couple of corporate crossholders and several banks. There will be more to come later,...

Travis Lundy

Hisamitsu Pharmaceutical Co announced MBO to go private at ¥6,082 per share. Given the fundamentals the offer price seems a decent exit...