Smartkarma Daily Briefs

A Nikkei article today suggests FUNDING SECURED for JIP’s deal for Toshiba Corp (6502 JP). Noises 2wks ago suggested this timing for a deal, but there are no terms yet.
The syndicate, led by SMBC and Mizuho, “has agreed to ¥1.2trln in loans.” The two leads take two-thirds but details suggest not all is as smooth as the headline suggests.
The remaining questions are whether the major holders will take the bait at that price, and/or whether JIC would come in over the top. I expect yes to the first.

2023 High Conviction – Anycolor (5032) Aiming at TSE Prime and TOPIX – And How!

“VTuber” (Virtual Youtuber) animated influencer company Anycolor (5032 JP) was listed on 8 June 2022 at ¥1530. The stock popped 214% on Day1.It is up another 60% since then.
Today Anycolor reported Q2 earnings (result, presentation) and revised its full-year forecast to 30 April. Revenues will be +7-18% vs forecast, OP +18-39%, NP +15-39%. Price is 43x forecast EPS.
The company also announced it is preparing a Section Transfer application, but gave little more info. So we dig into what THAT means.

Toshiba (6502 JP): Securing Financing Helps Sentiment but Hurdles Remain

By Shifara Samsudeen, ACMA, CGMA

The Nikkei reports that Japan Industrial Partners (JIP), the preferred bidder, has secured bank financing of around JPY1.2 trillion (US$8.8 billion), conditional on Toshiba Corp (6502 JP) selling some businesses.
JIP will table an offer valuing Toshiba at JPY2.2 trillion (US$16 billion). The special committee is assessing the proposal and a final decision will be made at a board meeting.
JIP’s next challenge is getting the committee to recommend the offer. While a potential offer of JPY5,100 is not terrible, it is well below the original bid expectation of JPY6,000.

Premier Anti-Aging Company: DUO Is Going Down

By Oshadhi Kumarasiri

Premier Anti-Aging (4934 JP) shares rose 6.1% today following a massive earnings miss and a substantial downgrade to FY23 guidance.
This is perhaps due to low liquidity and depressed prices as the share price dropped more than 85% since July last year.
We think there’s more downside to the stock, especially with DUO about to hit the bottom of the barrel and CANADEL and Clayence struggling to maintain growth momentum.

Tokyo Electron (8035) | Huge Upside if Management Hit Targets

By Mark Chadwick

Tokyo Electron is a structural growth stock that has fallen by 31% YTD reflecting near term risks to growth and margins
We believe that the digitization of society has only just begun and that data volumes will grow exponentially
We analyse TEL’s core value drivers – revenue, margins, risk and reinvestment – and see 38% upside

Fujifilm: An Inspiring Transformation Story

Established as a domestic photographic film manufacturing company, Fujifilm has successfully evolved into a healthcare company with majority revenue earned from medical and life science related businesses.
Fujifilm is now a leading player in Bio CDMO market through a combination of acquisitions and in-house developed capabilities. The company has gained recognition among leading pharmaceutical companies.
We think there is further upside to Fujifilm’s valuation multiples as the market still values the stock as an image/photography company and not in line with healthcare peers.

Askul Q2 23 Results Reaction: B2B Growth and B2C Cost Savings Drive Solid Quarter

By Kirk Boodry

Results for Q2 were better than we expected as B2B sales growth remained robust whilst cost savings on the consumer side boosted margins
A rather robust decline in revenue for Lohaco is the only negative that stands out but this was partially anticipated whilst the corresponding cost savings are a boon
An 11% increase in operating profit for Q2 offsets weakness from the previous report and puts the company on track to meet guidance for full-year growth

ROIC Helps to Raise Transparency in Business, but Management Skills Are the Key to Improve Return

By Aki Matsumoto

The important thing is not whether the ROIC tool is used or not, but rather the risk-taking for investment and whether it resulted in sufficient returns.
A change in the outlook for improving profitability is necessary for the stock price to rise, and furthermore, a compelling growth policy and capital allocation can also be effective.
The fact that valuations have not risen sufficiently in the current situation infers that investors lack confidence in the path to improving profitability for each business.

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Dec 15

Daily Brief ESG: Companies that Buy Back Their Own Shares but Do Not Increase Their Share Price Should Consider Why and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Companies that Buy Back Their Own Shares but Do Not Increase Their Share Price Should Consider Why
A Win for Truston Asset Mgmt: Corporate Activism Worked on Taekwang Industrial

Companies that Buy Back Their Own Shares but Do Not Increase Their Share Price Should Consider Why

By Aki Matsumoto

Companies are presumably allocating cash to shareholder returns rather than investing in growth. Lack of investment in growth may lead to slower profit growth, which leads to lower valuations.
There is concern that management may be hesitant to take risks. Since no shareholder hates shareholder returns, they may be easily diverted to share repurchases that don’t require risk-taking decision.
Although the expected share repurchase will limit the risk of sharp decline in the stock prices, modest growth investments are likely to prevent the expansion of multiples.

A Win for Truston Asset Mgmt: Corporate Activism Worked on Taekwang Industrial

By Douglas Kim

This insight provides the details of how a local asset management company called Truston Asset Mgmt has been able to win a corporate activism battle against Taekwang Industrial.
Taekwang Industrial has repeatedly been boggled down by numerous corporate governance related issues for more than a couple of decades.
The overall result should be a modest positive sentiment on Taekwang Industrial’s shares in the near term which still trades at dirt cheap P/B multiple of 0.2x.

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Dec 15

Daily Brief Technical Analysis: Today’s Fed Day to Determine Next Big Market Move? SPX Key Levels: 4100 and 3910 and more

By Smartkarma Daily Briefs | Daily Briefs, Technical Analysis

In today’s briefing:

Today’s Fed Day to Determine Next Big Market Move? SPX Key Levels: 4100 and 3910

Today’s Fed Day to Determine Next Big Market Move? SPX Key Levels: 4100 and 3910

By Joe Jasper

The SPX, $IWM, $QQQ continue to have trouble breaking above their 200-day MAs and YTD downtrends, while the DJIA has been unable to sustain a breakout above 34,280.
With that said, all four of these indexes are consolidating within tight ranges just below the aforementioned resistance levels, building energy for the eventual breakdown or breakout.
We still recommend shifting exposure to defensives (Staples,Utilities,Health Care) and/or taking profits following this rally, but we cannot rule out potential for major upside breakouts. We discuss specific levels below.

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Dec 15

Daily Brief ECM: Our IPO Calls for 2022 and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Our IPO Calls for 2022
DPC Dash IPO: Valuation
Weilong Delicious IPO: Thoughts on First Day Trading
Singapore Proptech Firm Ohmyhome Files for US$15M IPO at US$88M Valuation

Our IPO Calls for 2022

By Shifara Samsudeen, ACMA, CGMA

As 2022 comes to an end, we revisit our IPO calls over the last 12-months and how these stocks have performed to assess the effectiveness of our calls.
We made explicit buy/sell calls on 12 IPOs during this period with a hit-rate of 83.3% with Grab, GoTo, Cloud Music, SenseTime and Leapmotor IPOs making the highest returns.
We also wrote on several other IPOs during this period, however, those IPOs have not received approval yet.

DPC Dash IPO: Valuation

By Oshadhi Kumarasiri

DPC Dash (1405 HK) is the exclusive master franchisee of Domino’s Pizza in mainland China, Hong Kong and Macau with around 546 stores as of 9M2022.
With Domino’s trailing Pizza Hut in the Chinese market, we think DPC Dash doesn’t deserve to trade on par with other leading Domino’s Master Franchisees around the world.
Therefore, we see an opportunity to make money on the short side, once the IPO is completed.

Weilong Delicious IPO: Thoughts on First Day Trading

By Shifara Samsudeen, ACMA, CGMA

Weilong Delicious Global (9985 HK) has priced its IPO at HK$10.56 per share, slightly above the bottom of the IPO price range of HK$10.4-11.4 per share.
The company’s HK offering was oversubscribed by 10.53x while the international offering was oversubscribed by 2.6x.
Even at the above price, Weilong’s IPO is still at a significant premium to domestic as well as international peers.

Singapore Proptech Firm Ohmyhome Files for US$15M IPO at US$88M Valuation

By e27

Singapore-based Ohmyhome has filed for an initial public offering (IPO) in the US at about US$88 million valuation, according to multiple reports.
The property-tech company seeks to raise up to US$16.25 million and offer 3.25 million shares at a price range of US$4-5 apiece.
Spartan Capital Securities is the lead managing underwriter and book-runner for the IPO.

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Dec 15

Daily Brief Credit: Morning Views Asia: Country Garden Holdings Co and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Morning Views Asia: Country Garden Holdings Co
Wynn Resorts

Morning Views Asia: Country Garden Holdings Co

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Country Garden Holdings Co

Wynn Resorts

Wynn Resorts is a renowned operator of casinos and resorts across the world.
Wynn’s management observed strength throughout the casino, with record gross gaming revenue and record hotel revenue, driven by strength in both ADR and occupancy on the nongaming side.
In addition, Wynn is progressing with the planning for Wynn Marjan, their integrated resort in the United Arab Emirates.

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Dec 15

Daily Brief Thematic (Sector/Industry): Good Morning Japan | Markets Hear “RECESSION” and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Good Morning Japan | Markets Hear “RECESSION”
Anatomy Of A Semiconductor Downturn
Heard on the Bund – China TMT and Consumer Bi-Weekly

Good Morning Japan | Markets Hear “RECESSION”

By Mark Chadwick

OVERSEAS: Fed Pivots – Powell unleashes his inner VOLCKER with hawkish comments; Rates fall ; USD falls; Equities on recession fears; GS to cuts bonuses; Massive Nuclear Fusion breakthrough
JAPAN: NKY Futs -0.9% vs Cash; USDJPY ¥135.4 – stable post Fed move; BOJ review in 2023- wages key; Struggles in financings Defense spending; JP companies ramping Darbonization spending.
DAILY NUGGET: We look at why Nuclear Fusion matters in light of the recent breakthrough. This is a BIG DEAL.

Anatomy Of A Semiconductor Downturn

By Semicon Alpha

The origins of the current semiconductor downturn can be traced back to last May.
That’s when the leading PC OEMs posted their first quarter results, and in some cases, their second quarter outlook.
For some context, it is well understood that the pandemic roused the slumbering PC market to an extraordinary degree after the initial shock waves reverberated around the globe in Q1 2020.

Heard on the Bund – China TMT and Consumer Bi-Weekly

By Eric Chen

IQIYI DAU surpassed 100 million for the first time since 2020
Recovering China advertising market and industry’ optimistic outlook for 2023
COVID infection rates in China, third growth driver of Xiabuxiabu

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Dec 15

Daily Brief Event-Driven: Acotec/Boston Scientific: Even Higher Proration and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Acotec/Boston Scientific: Even Higher Proration
Toyo Construction (1890 JP): Pot Shots and Warning Shots
Yashili (1230 HK): Monthly Update Suggests that Pre-Condition Satisfaction in the Final Leg
CSI REITs Index: An Investable Benchmark Launches Today
PayTM (One 97 Communications) Announces a BUYBACK – Overhang Vs Feelings Vs Buyback Vs Index
Alpha Generation Through Share Buybacks in Korea: December 2022
Adani Enterprise US$2.4bn Raising Early Look – Lots to Think About: Controversies, Debt, Grand Plans

Acotec/Boston Scientific: Even Higher Proration

By David Blennerhassett

Back on the 12 December, Acotec Scientific Holdings (6669 HK) announced a Partial Offer from Boston Scientific (BSX US)
The Offer Price of $20/share is for up to 65% of shares out. Irrevocables total up to 60.14% of shares out, sufficient to clear the minimum tendering condition.
My initial read was that the proration was simply 65%. That was wrong. It is higher. Plus there are some interesting quirks to avoid breaching the public float post-Offer.

Toyo Construction (1890 JP): Pot Shots and Warning Shots

YFO’s press release alleges the Toyo Construction (1890 JP) Board will not recommend the tender as YFO is not a suitable owner rather than the JPY,1000 price being too low.
The Board responded that YFO violated the NDA by disclosing the reasons for the Board’s disapproval. This damages the understanding between the parties, an essential precondition to recommending the offer.
The start of the tender has been pushed back to late January 2023. YFO is committed and will not withdraw the offer for any reason that shareholders may consider unreasonable.

Yashili (1230 HK): Monthly Update Suggests that Pre-Condition Satisfaction in the Final Leg

Yashili International Holdings (1230 HK)‘s latest monthly update suggests that the remaining pre-condition, the 25% Yashili acquisition, is entering the final stages towards being satisfied.
The wording “in the course of processing the relevant application” suggests that the government authorities will grant the new registration certificate, which should be received shortly.
The gross spread is 6.2%. The downside is low as both Danone SA (BN FP) and China Mengniu Dairy Co (2319 HK) can waive conditions to satisfy the pre-condition.

CSI REITs Index: An Investable Benchmark Launches Today

The China Securities Index (CSI) will launch the CSI REITs Index today. The index currently has 14 constituents, and the REITs will be capped at 15% of the index weight.
We expect another 6 REITs to be added to the index at the March rebalance. And then at least another 3 more in June.
The launch of the index should result in ETFs and other passive investment products being floated which should further enhance market liquidity and bring long-term benefits to the market.

PayTM (One 97 Communications) Announces a BUYBACK – Overhang Vs Feelings Vs Buyback Vs Index

PayTM, which IPOed 13 months ago at Rs2150/share and now trades 75% lower “intimated” the possibility of a buyback on the 8th, and shares jumped 7.2% on the 9th.
The Board approved the INR 8.5bn buyback at max price INR 810/share late last night. The shares fell slightly today. Now we move to a postal ballot.
The buy-back rules crate interesting parameters and these buy-back terms provide interesting opportunities.

Alpha Generation Through Share Buybacks in Korea: December 2022

By Douglas Kim

In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in the past two months.
In addition to these share buybacks, there has also been more recent news flow regarding the share purchases of Samsung Electronics by numerous senior directors.
In the past month, some of the larger market cap companies including KT&G, Douzone Bizon, and Hyundai Elevator that have been buying back shares have been outperforming KOSPI.

Adani Enterprise US$2.4bn Raising Early Look – Lots to Think About: Controversies, Debt, Grand Plans

By Sumeet Singh

Adani Enterprises (ADE IN) is looking to raise INR200bn (US$2.4bn) via a further public offering. The company has obtained board approval and is now awaiting shareholder approval.
It is the flagship company of the Adani Group. The group’s listed entities’ stock performance over the past few years has made the founder one of the richest persons globally.
However, the stock is expensive and has had some issues in the past. In this note, we take an early look at the possible placement and its impact.

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Dec 15

Daily Brief Macro: CX Daily: China Unplugs Travel Tracking System as Covid Curbs Ease and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

CX Daily: China Unplugs Travel Tracking System as Covid Curbs Ease
UK: Inflation Broadly Less Excessive

CX Daily: China Unplugs Travel Tracking System as Covid Curbs Ease

By Caixin Global

Travel tracking /: China unplugs travel tracking system as Covid curbs ease
Covid-19 /: Beijing beefs up health care system to handle Covid surge
Finance and economy /: China and Saudi Arabia agree on $50 billion of deals

UK: Inflation Broadly Less Excessive

By Phil Rush

UK inflation eased in Nov-22 to 10.7% and 14% on the CPI and RPI. An extremely early collection date is probably partly to blame for the broadly less intense outcome.
Underlying inflationary pressures remain excessively high, despite the monthly impulse in the median rate falling from its peak as expected.
We still see inflation past its peak but likely to remain persistently above the target. UK monetary policy will need to tighten further and is unlikely to reverse until 2024.

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Dec 15

Daily Brief Equity Bottom-Up: Meituan Food Delivery 4Q Updates and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Meituan Food Delivery 4Q Updates
Terumo Corp (4543 JP): H1FY23 Results Reflect Continued Recovery from the Pandemic
Shizuoka – Indigestion
Baidu: Initiation of Coverage – Market Position & Key Drivers
Alibaba Health Information Technology (241.HK) FY23H1 – Concerns Behind the Performance Turnaround
Wynn Resorts
Banorte and BanBajio – October Data Trends, a First Look at 4Q 2022; Returns Pressure Building?
Peloton Interactive Inc.: Initiation of Coverage – Challenging Macro Environment & Other Factors
Our Models Suggest National Retail Properties Could Surge
Western Digital Corporation: Initiation of Coverage – Recent Collaborations & Other Drivers

Meituan Food Delivery 4Q Updates

By Xin Yu, CFA

Meituan food delivery order growth slowed down in Oct and Nov due to covid restrictions.
Meituan Instashopping continued to grow fast in terms of its daily orders.
TikTok food delivery service so far hasn’t posed big threats to Meituan.

Terumo Corp (4543 JP): H1FY23 Results Reflect Continued Recovery from the Pandemic

By Tina Banerjee

Terumo Corp (4543 JP) recorded double-digit revenue growth in H1FY23, with record-high Q2 revenue exceeding ¥200 billion. All three businesses of Terumo reported growth during H1FY23.
Cardiac and vascular segment remained the key growth driver and grew 21%, driven by a 24% y/y growth in overseas revenue amid the recovery and growth of medical demand.
Inflation and normalization of sales and marketing activities impacted the profitability of the company. To improve profitability Terumo has taken further price increase in second half.

Shizuoka – Indigestion

By Daniel Tabbush

Credit costs in September quarter are showing steep delta YoY and QoQ
Accelerated credit growth in past six months may mean there is more to come
Funding cost surge is keeping net interest income growth near zero despite swelling loans

Baidu: Initiation of Coverage – Market Position & Key Drivers

This is our first report on Chinese internet behemoth, Baidu.
The company’s operating loss and margin year over year and quarter over quarter for AI Cloud improved.
Their new AI businesses, like AI Cloud and Intelligent Driving, are in line with China’s national ambitions and digital innovation.

Alibaba Health Information Technology (241.HK) FY23H1 – Concerns Behind the Performance Turnaround

By Xinyao (Criss) Wang

Although Alibaba Health turned loss into profit in FY23H1, it was mainly benefited from the obvious effect of expenses control,which isn’t a long-term solution to achieve the goal of profit.
Alibaba Health has a more difficult problem. The logic of relying on multiple entrances to obtain customers to drive online drug sales has failed to bring higher revenue growth.
In other to keep sustainable growth, it’s important for Alibaba Health to further improve user conversion rate. It is also urgent to actively expand new business growth points.

Wynn Resorts

This is our first report on Wynn Resorts, a well-known operator of casinos and resorts across the globe.
The company observed strength throughout the casino, with record gross gaming revenue and record hotel revenue, driven by strength in both ADR and occupancy on the nongaming side.
In addition, Wynn is progressing with the planning for Wynn Marjan, their integrated resort in the United Arab Emirates.

Banorte and BanBajio – October Data Trends, a First Look at 4Q 2022; Returns Pressure Building?

By Victor Galliano

We analyse key trends to October 2022 for Banorte and Banco del Bajio, two of the top three ROE generating banks in Mexico which also trade on premium PBV ratios
For both, the challenges are funding costs that rise faster than loan yields, crimping credit spreads, as well as the indications that cost of risk may have bottomed out
Although the operating expenses ratio is well controlled so far, it seems unlikely that it can improve much more; these data trends add weight to our cautious view on Banorte

Peloton Interactive Inc.: Initiation of Coverage – Challenging Macro Environment & Other Factors

By Pearl Gray Equity and Research

This is our first report on Peloton Interactive, one of the most popular interactive fitness platforms in the world.
The company delivered a disappointing set of results as it failed to meet Wall Street expectations with respect to revenues as well as earnings.
We initiate coverage on the stock of Peloton Interactive, Inc. with a ‘Hold’ rating.

Our Models Suggest National Retail Properties Could Surge

The Gordon’s Growth Model suggests National Retail Properties is severely undervalued.
In addition, a seasonal ARIMA model indicates the REIT’s dividend yield might be sustainable.
The REIT could be an outlier in 2023, according to the Gordon’s growth model.

Western Digital Corporation: Initiation of Coverage – Recent Collaborations & Other Drivers

This is our first report on Western Digital Corporation, one of the largest manufacturers and distributors of data storage devices and solutions in the world.
The HDD revenue of Western Digital during the quarter declined modestly.
Western Digital is deep into qualifying its most recent generation of hard drives, including its 26-terabyte UltraSMR hard drives, at numerous OEM and U.S. cloud customers.

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Dec 15

Most Read: Omni Bridgeway, Alibaba (ADR), Li Auto, Haidilao, Toyo Construction, Acotec Scientific Holdings, Yashili International Holdings, China Communications Construction, WCP and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

S&P/ASX Index Rebalance Preview: A Busy March (Maybe January and February Too)
China ADRs Delisting – Friday Could Be Judgment Day for over US$800bn Mcap of Stocks
HSTECH: Index Handling Changes & Flows in March
Haidilao’s Imminent SpinOff of the Super Hi Overseas Business – Index Treatment and Implications
Toyo (1890) Says “We Reject”. YFO Says “But We Didn’t Talk”. Medium-🌶🌶🌶 Hostile Activism To Ensue
Acotec/Boston Scientific: Even Higher Proration
Toyo Construction (1890 JP): Pot Shots and Warning Shots
Yashili (1230 HK): Monthly Update Suggests that Pre-Condition Satisfaction in the Final Leg
CSI REITs Index: An Investable Benchmark Launches Today
Recent IPOs Carrying Putback Option in Korea: Market’s Attention Is on WCP

S&P/ASX Index Rebalance Preview: A Busy March (Maybe January and February Too)

We currently see one change each for the ASX20 and ASX100 indices, 4 changes for the S&P/ASX 200 and 10 adds/ 6 deletes for the ASX300 Index in March.
There could be an addition to the S&P/ASX 200 (AS51 INDEX) in January following Pendal Group (PDL AU)‘s acquisition by Perpetual Ltd (PPT AU).
PEXA Group (PXA AU) is a potential inclusion to the S&P/ASX 200 (AS51 INDEX) if Link Administration (LNK AU)‘s in-specie distribution of PEXA shares to its shareholders is approved.

China ADRs Delisting – Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

By Sumeet Singh

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we’ll talk about the latest developments, possible outcomes and implications.

HSTECH: Index Handling Changes & Flows in March

Hang Seng Indexes has changed the index handling treatment for Secondary Listings and Dual Primary Listings from the next rebalance in March.
The change could result in Tencent Music Entertainment Group (1698 HK) replacing Ming Yuan Cloud Group (909 HK) in the index.
There could be passive buying on Li Auto (2015 HK) and XPeng (9868 HK) due to an increase in the index shares with outflows on other index constituents.

Haidilao’s Imminent SpinOff of the Super Hi Overseas Business – Index Treatment and Implications

On 11 July, Haidilao (6862 HK) announced it would propose to spin off its international restaurant business (13-15% of revenue) to shareholders and employees. Shareholders approved in August.
There were interim announcements and indeed interim reports with some information, but not a lot. But Super Hi International Holding was headed for separate listing in HK.
Last week, Haidilao said it was going ahead with a Listing by Introduction pending listing approval by HKEX. Haidilao shares go ex- 16 December. Index providers have announced treatment.

Toyo (1890) Says “We Reject”. YFO Says “But We Didn’t Talk”. Medium-🌶🌶🌶 Hostile Activism To Ensue

In March, Toyo Construction (1890 JP) agreed to be bought out by INFRONEER Holdings (5076 JP) for ¥770/share. One activist objected, and bought 28%. They then said they’d pay ¥1,000.
The Infroneer deal failure started an acrimonious back and forth. The hostility lessened over the summer, but despite activist Yamauchi Family Office’s protestations of love, no deal as of November.
Today saw another press release, delaying things. The contents are 🌶🌶🌶. NOW things are getting more interesting. Hostility is back. Medium-spicy. Three 🌶 out of five.

Acotec/Boston Scientific: Even Higher Proration

By David Blennerhassett

Back on the 12 December, Acotec Scientific Holdings (6669 HK) announced a Partial Offer from Boston Scientific (BSX US)
The Offer Price of $20/share is for up to 65% of shares out. Irrevocables total up to 60.14% of shares out, sufficient to clear the minimum tendering condition.
My initial read was that the proration was simply 65%. That was wrong. It is higher. Plus there are some interesting quirks to avoid breaching the public float post-Offer.

Toyo Construction (1890 JP): Pot Shots and Warning Shots

YFO’s press release alleges the Toyo Construction (1890 JP) Board will not recommend the tender as YFO is not a suitable owner rather than the JPY,1000 price being too low.
The Board responded that YFO violated the NDA by disclosing the reasons for the Board’s disapproval. This damages the understanding between the parties, an essential precondition to recommending the offer.
The start of the tender has been pushed back to late January 2023. YFO is committed and will not withdraw the offer for any reason that shareholders may consider unreasonable.

Yashili (1230 HK): Monthly Update Suggests that Pre-Condition Satisfaction in the Final Leg

Yashili International Holdings (1230 HK)‘s latest monthly update suggests that the remaining pre-condition, the 25% Yashili acquisition, is entering the final stages towards being satisfied.
The wording “in the course of processing the relevant application” suggests that the government authorities will grant the new registration certificate, which should be received shortly.
The gross spread is 6.2%. The downside is low as both Danone SA (BN FP) and China Mengniu Dairy Co (2319 HK) can waive conditions to satisfy the pre-condition.

CSI REITs Index: An Investable Benchmark Launches Today