Smartkarma Daily Briefs

KRX has announced that Posco DX (022100 KS) will replace Shinsegae International Co (031430 KS) in the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the close on 14 March.
Passive trackers will need to buy 0.5 days of ADV in Posco DX (022100 KS) while selling in Shinsegae International (031430 KS) is larger at over 7 days of ADV.
L&F (066970 KS) lists on the KOSPI market on 29 January; there is a possibility that the stock is also added to the index in March as a Fast Entry.

A Sharp Downturn in Price Momentum of Rechargeable Battery Stocks in Korea in January 2024

By Douglas Kim

In this insight, we discuss the sharp share price declines of rechargeable battery related stocks in Korea so far in 2024.
The top 20 market cap rechargeable battery related stocks in Korea are down on average 15.9% YTD, underperforming KOSPI which is down 6.7% in the same period.
Many rechargeable battery related names in Korea continue to have lofty valuations. The 20 rechargeable battery names are trading at median P/E of 79.7x in 2023 and 39x in 2024.

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Jan 24

Daily Brief India: Zee Entertainment Enterprises, FirstCry and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Zee Entertainment- What Lies Ahead?
Brainbees Solutions (FirstCry) Pre-IPO – The Negatives – Not All of It Fits Together

Zee Entertainment- What Lies Ahead?

By Nitin Mangal

We have been covering Zee Entertainment Enterprises (Z IN) during the entire merger saga and had already highlighted several financial and governance issues with the entire group.
The $10 bn merger deal with Sony has now been terminated but it is not a surprise to us, considering the events that were unraveled in the last two years.
But where does ZEEL go from here is a question that lacks some clarity. There are uncertainties looming around and ZEEL can face further brunt.

Brainbees Solutions (FirstCry) Pre-IPO – The Negatives – Not All of It Fits Together

By Sumeet Singh

FirstCry is looking to raise up to US$700m in its upcoming India IPO.
FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products in terms of GMV, for the year ending Dec 2022 (9M23), according to RedSeer.
In this note, we talk about the not-so-positive aspects of the deal.

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Jan 24

Daily Brief United States: Amer Sports , S&P 500 INDEX, nCino, Marathon Digital Holdings, Calumet Specialty Products Par, Silicon Laboratories, Johnson & Johnson, Build A Bear Workshop, Vontier Corp, Squarespace and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Amer Sports IPO – Deal Updates and Thoughts on Valuation
Breakouts Proliferate; Bullish Outlook Intact; Small- And Mid-Caps to Lead?
nCino Inc: Initiation of Coverage – How nCino’s Digital Solutions are Capturing the Financial Market! – Major Drivers
Marathon Digital Holdings: Initiation of Coverage – The Power of Smart Cash Management! How Its Financial Strategy is Winning in the Crypto World! – Major Drivers
Calumet Specialty Prods -Lp (CLMT) – Tuesday, Oct 24, 2023
Silicon Labs: Initiation of Coverage – What Is The Core Business Strategy Driving Growth?
Johnson & Johnson’s Covid-19 Operations
BBW: Snapping the Store: Glisten Glistens, Valentines & Skoosherz Impressive
Vontier Corporation: Initiation of Coverage – Its 6 Biggest Growth Catalysts! – Financial Forecasts
Squarespace Inc: Initiation of Coverage – What Is Their Biggest Competitive Advantage? – Major Drivers

Amer Sports IPO – Deal Updates and Thoughts on Valuation

By Sumeet Singh

Amer Sports (AS US) now aims to raise up to US$1.8bn in its US IPO. Proceeds from the listing will be used to pay down debt to the Anta-led consortium.
Amer Sports is a sports and outdoor brands company making clothing and other sporting equipment for use in snow sports, running, climbing, baseball, american football, tennis and other sports.
We have looked at the company’s performance in our past note. In this note, we talk about valuations.

Breakouts Proliferate; Bullish Outlook Intact; Small- And Mid-Caps to Lead?

By Joe Jasper

The SPX, Nasdaq 100, and DJI breaking out to new all-time highs following 3-week consolidations. Russell 2000 (IWM), S&P 400 (IJH), Vanguard ExtendedMarket (VXF), countless other Sectors/industries breaking out also.
This is classic bull market behavior. Considering market dynamics remain healthy, this is all evidence that supports our ongoing bullish outlook.
Software, Data Storage buys: NTAP, NTNX, DBX, VRNS, and CVLT. Investment Banking & Brokerage, Mid-Cap buys: JEF, SF, EVR, MC, and LAZ

nCino Inc: Initiation of Coverage – How nCino’s Digital Solutions are Capturing the Financial Market! – Major Drivers

This is our first report on SaaS player, nCino Inc.
The company’s third quarter fiscal 2024 performance presented both opportunities and challenges in the midst of a complex economic environment.
The company announced a significant product win in relation to a consumer lending deal with an enterprise bank in the United States of over $200 billion.

Marathon Digital Holdings: Initiation of Coverage – The Power of Smart Cash Management! How Its Financial Strategy is Winning in the Crypto World! – Major Drivers

This is our first report on Marathon Digital Holdings, a renowned cryptocurrency technology company.
Improved operational efficiency also resulted in a lower cost per bitcoin mined and a drop in all-in cost per coin.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Calumet Specialty Prods -Lp (CLMT) – Tuesday, Oct 24, 2023

By Value Investors Club

Key points (machine generated)

Calumet is expected to experience positive catalysts in the next six months despite facing challenges such as its MLP structure, operational issues, and credibility concerns.
The company has the potential to generate significant EBITDA numbers from its Specialty and MRL divisions, indicating strong growth prospects.
The Performance Brands and legacy refinery businesses are also expected to contribute to EBITDA, assuming favorable market conditions.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Silicon Labs: Initiation of Coverage – What Is The Core Business Strategy Driving Growth?

By Small Cap Consumer Research

This is our first report on fabless semiconductors player, Silicon Labs.
The third quarter of 2023 has been a difficult period for Silicon Labs amidst a backdrop of weak demand and heightened inventory levels.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Johnson & Johnson’s Covid-19 Operations

By Calcbench

Like everyone else on the planet, Calcbench has been relieved to see the covid-19 pandemic recede into the background of daily life.
Now, however, Johnson & Johnson ’s latest earnings report gives us a glimpse of what that fade means for corporate earnings.
J&J ($JNJ) filed its earnings report on Tuesday morning .

BBW: Snapping the Store: Glisten Glistens, Valentines & Skoosherz Impressive

We are reiterating our Buy rating, $41 price target and projections for Build-A-Bear Workshop after visiting stores in Connecticut and Long Island.
January is a key month for Build-A-Bear, as the company enjoys material traffic from gift card purchases post-Xmas and almost immediately thereafter shifts to the key Valentine’s Day season.
As such, we are reiterating our Buy rating and $41 price target for BBW.

Vontier Corporation: Initiation of Coverage – Its 6 Biggest Growth Catalysts! – Financial Forecasts

This is our first report on critical technical equipment, components, software, and services provider, Vontier Corporation.
The company, in its latest earnings, exhibited noteworthy progress in its strategies and performance for the third quarter.
The top-line performance recorded for the quarter outperformed expectations with baseline core revenue growth of 10%, reflecting gains from the company’s connected mobility strategy.

Squarespace Inc: Initiation of Coverage – What Is Their Biggest Competitive Advantage? – Major Drivers

This is our first report on renowned brand building platform operator, Squarespace Inc.
The company’s Q3 2023 results reinforced growth potential bolstered by expansions and strategic acquisitions.
The company posted 18% revenue growth expanding on unlevered free cash flow margin of 21% and surpassing $1 billion in annual run rate revenue for the first time—demonstrating the strength of their core business.

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Jan 24

Daily Brief China: Weiqiao Textile Co, Bank of Jiangsu , New Horizon Health , Kuaishou Technology, Texwinca Holdings, Shouhui Tech, Guming Holdings and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Weiqiao Textile (2698 HK): Vote on 8 March
SSE50 Index Rebalance Preview: Financials Staging a Comeback as Expected Trade Tops US$2bn
New Horizon Health: Positive Alert, Upgrades ’23 Revenue Guidance
[Kuaishou (1024 HK, BUY, TP HK$79) TP Change]: Robust Organic Traffic Supports Robust Growth
Texwinca (321 HK): Even Cheaper Than Pacific Textiles (1382 HK)
Pre-IPO Shouhui Tech – The Business Outlook and Stock Price Performance Are Not Optimistic
Guming Holdings (Goodme) Pre-IPO – The Negatives – Growth Sustainability Remains a Question Mark

Weiqiao Textile (2698 HK): Vote on 8 March

Weiqiao Textile Co (2698 HK)’s IFA opines that Weiqiao Chuangye’s privatisation offer of HK$3.50 per H Share, a 104.7% premium to the undisturbed price, is fair and reasonable.
Despite amassing a blocking stake, Prudence’s ongoing buying supports the view that it intends to play the spread rather than block the deal.
Despite the offer being below net cash, this is a done deal. At the last close and for the 28 March payment, the gross/annualised spread is 1.7%/10.2%.

SSE50 Index Rebalance Preview: Financials Staging a Comeback as Expected Trade Tops US$2bn

Completing three-quarters of the review period, 6 stocks are in inclusion zone and 9 in deletion zone. However, there can be a maximum of 5 changes at a review.
We estimate a one-way turnover of 6.8% at the June rebalance leading to a one-way trade of CNY 7.35bn (US$1.02bn). Index arb balances could increase the impact on the stocks.
The potential adds have outperformed the potential deletes and the SSE50 Index (SSE50 INDEX) over the last few months and could continue to do so as positioning builds up.

New Horizon Health: Positive Alert, Upgrades ’23 Revenue Guidance

By Ke Yan, CFA, FRM

New Horizon Health announced a positive profit alert yesterday after market close and held a conference call.
We participated in the call and spoke with the management to understand the recent developments.
The company upgraded ’23 revenue guidance and provided revenue guidance for ’24.

[Kuaishou (1024 HK, BUY, TP HK$79) TP Change]: Robust Organic Traffic Supports Robust Growth

By Ying Pan

We expect Kuaishou to report C4Q23 revenue, IFRS op. profit and IFRS net income in-line, 34% and 29% vs. consensus, thanks to margin improvements;
Playlet continued to generate significant organic traffic, leading to decreasing sales marketing cost and growth in advertising inventories. We further expect AI to drive playlet market expansions;
E-Commerce GMV growth was robust. Kuaishou will likely increase take rate in the future. We maintain BUY and raise TP to HK$79, implying an 17x PE.

Texwinca (321 HK): Even Cheaper Than Pacific Textiles (1382 HK)

By David Blennerhassett

Following the recent Offer for Weiqiao Textile Co (2698 HK), I flagged Pacific Textiles (1382 HK) in Pacific Textiles (1382 HK): Material Benefits as a potential M&A play.
Also in this space is Texwinca Holdings (321 HK) which is trading down towards its Covid-affected lows.
Both Pacific Textiles and Texwinca are pursuing a Vietnamese expansion. Texwinca is trading cheaper to Pacific Textiles, is net cash, and has a superior yield..

Pre-IPO Shouhui Tech – The Business Outlook and Stock Price Performance Are Not Optimistic

By Xinyao (Criss) Wang

The essence of Shouhui’s business model is to “sell insurance” rather than provide services with technological attributes. So, Shouhui has relatively single business composition and lacks diversified sources of revenue.
The trend of “disintermediation” is becoming increasingly evident, which may lead to customers deciding to purchase insurance directly from insurance companies not from Shouhui, resulting declining demand for Shouhui’s services/products.
The business nature of insurance is incompatible with the Internet’s pursuit of rapid expansion. Cooling “Internet +insurance” investment in recent years proves the decline of market’s enthusiasm for this business.

Guming Holdings (Goodme) Pre-IPO – The Negatives – Growth Sustainability Remains a Question Mark

By Clarence Chu

Guming Holdings (GUM HK) (Guming) is looking to raise US$300m in its upcoming Hong Kong IPO.
Guming Holdings (Guming) is a maker of freshly-made beverages in China.
In this note, we will talk about the not so positive aspects of the deal.

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Jan 24

Daily Brief Japan: JSR Corp, Shinko Electric Industries, Recruit Holdings, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

JSR (4185) – Very Juicy Arb Return At Expected Timeline
Shinko Electric (6967 JP): Tender Offer Risk/Reward
Recruit: More Challenges Ahead for HR Tech Business
CG Watch, Which Made Great Strides Will Be Tested Next Time for Substantial Governance Improvements

JSR (4185) – Very Juicy Arb Return At Expected Timeline

Five weeks ago, JIC announced a delay in the commencement of the Tender Offer to buy JSR Corp (4185 JP), originally scheduled to start by end-December 2023.
In the announcement, they said they expected the deal to start by end-February. In the press conference afterwards, JIC CEO Yokoo said “no particular issues with the Chinese regulator.”
He then added he expected the deal to be done by March-end. Language is vague. I expect that means to start by then, but even then, annualised is now 30%.

Shinko Electric (6967 JP): Tender Offer Risk/Reward

By Shifara Samsudeen, ACMA, CGMA

Shinko Electric Industries (6967 JP)‘s pre-conditional tender offer from the JIC alliance is JPY5,920 per share. Since the deal announcement, the gross spread has averaged 8.3%.
The wide gross spread reflects the risk in satisfying the pre-conditions related to country approvals, particularly China and shareholder approval, due to Ibiden Co Ltd (4062 JP)’s re-rating.
Ibiden’s re-rating is not necessarily an issue. JIC’s confidence in securing SAMR approval for the JSR Corp (4185 JP) transaction by March is a positive for Shinko’s SAMR approval.

Recruit: More Challenges Ahead for HR Tech Business

Recruit’s share price had rallied 38% since November 2023 driven by the stake acquisition by the hedge fund ValueAct despite there being a decline in the company’s earnings.
Labour markets have further weakened in the December quarter while web traffic on Recruit’s job platforms Indeed and Glassdoor have significantly declined during the quarter.
Though Recruit Holdings (6098 JP) has guided for a decline in earnings, we think there is further downside to the company’s guidance.

CG Watch, Which Made Great Strides Will Be Tested Next Time for Substantial Governance Improvements

By Aki Matsumoto

Government ministries, agencies and the TSE want to raise the value of the Tokyo market, even if it means using the opinions of overseas investors, including activist investors.
Companies with high foreign ownership and large market capitalization are proactive in corporate governance efforts, while many other companies are passive, indicating that differences in efforts among companies are significant.
Thanks to the revision of the Corporate Governance Code, corporate governance practices have improved mainly in terms of formal criteria, and now substantive improvements are required.

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Jan 23

Most Read: Shinko Electric Industries, Furuya Metal, Ping An Insurance (H), Mitsubishi UFJ Financial (MUFG), Jiangsu Zhongtian Technologies Co, Ltd., Asmedia Technology, T&K Toka Co Ltd, L&F Co Ltd, Kunlun Tech , Amer Sports and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Shinko Electric (6967) Takeover: Changing Break/Gap Risk as Comps Gain
Furuya Metal (7826 JP) TOPIX Inclusion: Big Impact but Even Bigger Overhang
Ping An A/H Premium: Blow Out Could Lead to Sharp Reversal
TSE Action to Implement Management Conscious of Capital Cost and Stock Price – The Data Tool
CSI300 Index Rebalance Preview: A Dozen Changes for June
ASMedia Placement – Momentum Has Been Strong, but an Overhang Exists
T&K TOKA (4636 JP): Bletcherous Bain Bump Doesn’t Even Reach Blandiloquent – Another Offensive Deal
KOSDAQ150 Adhoc Index Rebalance: Seronics to Replace L&F
CSI500 Index Rebalance Preview: High Turnover & Big Flow
Amer Sports (AS US) IPO: Valuation Insights

Shinko Electric (6967) Takeover: Changing Break/Gap Risk as Comps Gain

The JIC Deal for Shinko Electric Industries (6967 JP) started trading wide when announced five weeks ago. It is still at 9% for perhaps 9 months.
There is FUD. There are Flows. Just like JSR (4185). Some of that FUD can be explained by “gap risk” on deal break…. or can it? We look at risks.
5 weeks ago, there was more positioning risk than fundamental risk. But now main comp Ibiden has outperformed Shinko by 17%. Gap risk is fundamentally lower now. Bump risk exists.

Furuya Metal (7826 JP) TOPIX Inclusion: Big Impact but Even Bigger Overhang

By Janaghan Jeyakumar, CFA

On 16th November 2023, Tokyo-based Industrial-use precious metal products manufacturer Furuya Metal (7826 JP) announced they would be moving from TSE Standard to TSE Prime on 6th December 2023.
This move would trigger a TOPIX Index Inclusion event at the end of January 2024 which would require all the TOPIX-tracking passive funds to buy shares in the company.
The company also launched an offering in conjunction with the TSE Prime announcement. In this insight, we take a look at the flow dynamics of the upcoming TOPIX Inclusion event.

Ping An A/H Premium: Blow Out Could Lead to Sharp Reversal

Ping An Insurance (601318 CH) trades at a 40% premium to Ping An Insurance (2318 HK). The premium has blown out the last week and there could be a reversal.
The difference in Ping An’s AH premium versus the HSAHP Index has shrunk to its narrowest level in the last 10 years.
Shareholding in Ping An Insurance Group of (601318 CH) via Northbound Connect has dropped and shareholding in Ping An Insurance (H) (2318 HK) via Southbound Connect has increased steadily.

TSE Action to Implement Management Conscious of Capital Cost and Stock Price – The Data Tool

A few days ago, the TSE announced a “name-and-shame” list where they listed all the companies which had put forth a disclosure about 【資本コストや株価を意識した経営の実現に向けた対応】
That translates to “Action to Implement Management That is Conscious of Cost of Capital and Stock Price”. The TSE asked companies in Mar-2023 to formulate and disclose a policy.
Some have. Some have not. The TSE made a list. They will update the list every month. However, their list is wholly inadequate, so we made it better.

CSI300 Index Rebalance Preview: A Dozen Changes for June

With three-quarters of the review period nearly complete, there could be 12 changes for the Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX) in June.
We estimate one-way turnover of 1.3% at the June rebalance leading to a one-way trade of CNY 5.06bn. There are a lot of stocks with over 1x ADV to trade.
There have been big ETF inflows to the CSI 300 Index trackers, but the potential adds have still outperformed the index and the potential deletes.

ASMedia Placement – Momentum Has Been Strong, but an Overhang Exists

By Clarence Chu

WT Microelectronics (3036 TT) is looking to raise US$256m from selling half of its stake in Asmedia Technology (5269 TT).
The deal wouldn’t be a very large one to process at just 3.4 days of ASMedia’s ADV.
Although, the selldown doesn’t appear to be particularly well flagged. The remaining WT Microelectronics’ stake will also create an overhang on ASMedia’s share price as well.

T&K TOKA (4636 JP): Bletcherous Bain Bump Doesn’t Even Reach Blandiloquent – Another Offensive Deal

I expected a blandiloquent but bletcherous bump from Bain. Discussed in T&K TOKA (4636 JP): Expect ANOTHER Blandiloquent But Bletcherous Bump From Bain. We got bletcherous.
But at a mere ¥10 uplift to ¥1,410, we did not get blandiloquent. That’s insulting. But as suggested in the first piece, there was NAVF Risk. And we got it.
NAVF agreed to sell its 24+% to Bain at ¥1,410 in return for being able to buy 15% of the bidco, fully-levered (i.e. they roll in at minimal cost).

KOSDAQ150 Adhoc Index Rebalance: Seronics to Replace L&F

L&F Co Ltd (066970 KS) will move from the KOSDAQ Market to the KOSPI Market on 29 January. That means KOSDAQ 150 Index deletion at the close on 26 January.
As the highest ranked non-constituent from the Information Technology sector at the December rebalance, Seronics Co Ltd (042600 KS) will be added to the index.
Short interest on L&F Co (066970 KS) is 1.8m shares (KRW 364bn; 4.98% of shares outstanding; 7.24% of float; 2.4x ADV). There could be recalls from passives and forced covering.

CSI500 Index Rebalance Preview: High Turnover & Big Flow

With three-quarters of the review period nearly complete, we forecast 50 changes (the maximum permitted) for the CSI 500 Index at the close on 14 June.
There is a big sector skew in the potential changes. We estimate a one-way turnover of 9.1% at the June rebalance resulting in a one-way trade of CNY 5.34bn.
The potential adds and deletes and the CSI 500 Index have performed in line since August and the current setup appears attractive.

Amer Sports (AS US) IPO: Valuation Insights

Amer Sports (AS US) is a global iconic sports and outdoor brand group. Amer has launched an NYSE IPO to raise US$1.6-1.8 billion at a US$16.00 to US$18.00 price range.
We previously discussed the IPO in Amer Sports IPO: The Bull Case, Amer Sports IPO: The Bear Case and Amer Sports IPO: Valuation First-Look.
We revise our forecasts to reflect the FY23 preliminary estimates and long-term growth targets. Our valuation analysis suggests that Amer is fairly valued at the IPO price range.

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Jan 23

Daily Brief Industrials: Yunda Holding and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

STO & Yunda May Report Operating Losses in Q423, Hampering Their Ability to Invest & Grow in ’24

STO & Yunda May Report Operating Losses in Q423, Hampering Their Ability to Invest & Grow in ’24

By Daniel Hellberg

Plummeting ASPs likely pushed STO and Yunda OpInc margins below 0% in Q423
The companies’ operating cash flow may be insufficient to fund needed capex
Reduced investment could lead to slower growth, consolidation pressure in ’24

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Jan 23

Daily Brief Utilities: Tracker Fund of Hong Kong and more

By Smartkarma Daily Briefs | Daily Briefs, Utilities Sector

In today’s briefing:

Opportunities in the Hong Kong Market

Opportunities in the Hong Kong Market

By Rikki Malik

A capitulation-type event for the Hong Kong market is ongoing.
High-Dividend stocks will provide a safer return regardless of broader market moves.
A false breakdown below Oct 2022 support will provide a signal for higher-beta exposure.

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Jan 23

Daily Brief Energy/Materials: T&K Toka Co Ltd, Orecorp Ltd, Sovereign Metals, Fortescue Metals, ADX Energy Ltd, Natural Gas and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

T&K TOKA (4636 JP): Bletcherous Bain Bump Doesn’t Even Reach Blandiloquent – Another Offensive Deal
Trading At Terms As Orecorp Rebuffs Perseus’ All-Cash Bid
T&K Toka (4636 JP): Bain Bumps to JPY1,410 as Dalton Agrees to Tender
OreCorp (ORR AU): Perseus Rivals Silvercorp with an All-Cash Takeover Offer
Sovereign Metals Limited (SVM) – Monday, Oct 23, 2023
Fortescue Metals (FMG AU): 8% Yield At Spot Price With Risks, Wait For Better Entry Point
ADX Energy (ASX: ADX): Drilling Rig on Location of High Impact Well by the End of January
How Commodities Perform Around First Rate Cut

T&K TOKA (4636 JP): Bletcherous Bain Bump Doesn’t Even Reach Blandiloquent – Another Offensive Deal

I expected a blandiloquent but bletcherous bump from Bain. Discussed in T&K TOKA (4636 JP): Expect ANOTHER Blandiloquent But Bletcherous Bump From Bain. We got bletcherous.
But at a mere ¥10 uplift to ¥1,410, we did not get blandiloquent. That’s insulting. But as suggested in the first piece, there was NAVF Risk. And we got it.
NAVF agreed to sell its 24+% to Bain at ¥1,410 in return for being able to buy 15% of the bidco, fully-levered (i.e. they roll in at minimal cost).

Trading At Terms As Orecorp Rebuffs Perseus’ All-Cash Bid

By David Blennerhassett

In OreCorp: Silvercorp Switches To Off-Market Bid, after Silvercorp Metals (SVM CN) switched to an off-market Offer for Orecorp Ltd (ORR AU), I expected Perseus Mining (PRU AU) to counter.
Orecorp announced this morning Perseus (with 19.9% of shares out) has pitched an all-cash Offer of A$0.55/share, primarily conditional on getting to 50.1%
Orecorp has responded by saying Perseus Offer is not superior to Silvercorp cash/scrip terms. Perhaps it’s Orecorp’s way of (temporarily) skirting the break fee and letting the market decide.

T&K Toka (4636 JP): Bain Bumps to JPY1,410 as Dalton Agrees to Tender

T&K Toka Co Ltd (4636 JP) has recommended Bain’s revised tender offer of JPY1,410 per share, a highly disappointing 0.7% premium to the previous JPY1,400 offer.
Bain’s marginal bump was due to securing Dalton’s support through the Nichii Gakkan Co (9792 JP) playbook. Dalton will tender its shares and make a 15% re-investment in the offeror.
Shareholders representing a 60.82% ownership ratio, including share options, will accept, paving the way to success. With shares trading 4.7% above terms, it is time to move on.

OreCorp (ORR AU): Perseus Rivals Silvercorp with an All-Cash Takeover Offer