Category

Daily Briefs

Nov 12
0

Most Read: Gs Yuasa Corp, GMO Payment Gateway, Adaro Energy, Tuhu Car , Shriram Finance , Eoptolink Technology , Benesse Holdings, Cybernet Systems Co, Celltrion Inc, Vinx Corp and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Solactive Global Lithium Index Rebalance: 45% Turnover & US$980m Trade
  • Index Rebalance & ETF Flow Recap: KS200, KQ150, Yuanta Div+, LIT, HSCI, IDX, Japan Positioning
  • IDX30/​​LQ45/IDX80 Index Rebalance: Float & Capping Changes on Tuesday
  • HSCI Index Rebalance Preview: Tuhu Car in the Driver’s Seat; Keep Inc in the Running
  • Index Rebalance & ETF Flow Recap: NEXT50, SET50, L&F, Onewo, Celltrion, AMFI
  • ChiNext/​​​ChiNext50 Index Rebalance Preview: Time for a Turnaround
  • Benesse Holdings (9783 JP): EQT Backed Pre-Conditional MBO Tender Offer at JPY2,600
  • Fujisoft Tender Offer for Listed Sub Cybernet (4312) – This Is Too Cheap
  • Celltrion (068270 KS): Record High Revenue and Operating Profit in 3Q23 Solidify Merger Stance
  • Vinx Corp (3784) TOB by Parent Fujisoft (9749) – A Bit Cheap, Impossible To Block

Solactive Global Lithium Index Rebalance: 45% Turnover & US$980m Trade

By Brian Freitas

  • Solactive has announced the constituent changes for the Global Lithium Index. There are 8 adds and 9 deletes with implementation at the close on 31 October.
  • Estimated one-way turnover is in excess of 22% and will result in a one-way trade of US$490m. There are 11 stocks with estimated passive flows greater than 1x ADV.
  • The index is not very widely tracked and there could be big moves in stocks today and over the next few days – especially where there is multiple days ADV.

Index Rebalance & ETF Flow Recap: KS200, KQ150, Yuanta Div+, LIT, HSCI, IDX, Japan Positioning

By Brian Freitas

IDX30/​​LQ45/IDX80 Index Rebalance: Float & Capping Changes on Tuesday

By Brian Freitas

HSCI Index Rebalance Preview: Tuhu Car in the Driver’s Seat; Keep Inc in the Running

By Brian Freitas

  • There were only 14 new listing on the Main Board of the HKEX (388 HK) in the third quarter. Half of the listings were in the last week of September.
  • Of those stocks, only Tuhu Car (9690 HK) and Keep (3650 HK) have a chance of being added to the HSCI in December and then into Southbound Stock Connect.
  • Keep Inc (3650 HK) could be added to Stock Connect in early December while Tuhu Car (9690 HK) will have to wait till April for inclusion to the link.

Index Rebalance & ETF Flow Recap: NEXT50, SET50, L&F, Onewo, Celltrion, AMFI

By Brian Freitas

ChiNext/​​​ChiNext50 Index Rebalance Preview: Time for a Turnaround

By Brian Freitas

  • With the review period complete, we forecast 9 changes for the ChiNext Index (SZ399006 INDEX EQUITY) and 5 changes for the ChiNext 50 Index in December.
  • Some of the potential adds will also have passive flows from the CSI Smallcap 500 Index trackers at the same time as the ChiNext Index rebalance.
  • The potential adds have slipped a lot versus the potential deletes over the last few months as the National Team has tried to stabilise the market via ETF creations.

Benesse Holdings (9783 JP): EQT Backed Pre-Conditional MBO Tender Offer at JPY2,600

By Arun George

  • Benesse Holdings (9783 JP) has recommended an EQT-backed pre-conditional MBO offer of JPY2,600 per share, a 45.1% and 36.3% premium to the undisturbed price and last close, respectively.
  • The pre-conditions primarily relate to Japanese and Chinese approvals, which can be waived. Chinese SAMR approval should be forthcoming as education is not a geopolitical fraught sector.
  • The offer is long-dated and opens in early February 2024. While not a knockout bid, the offer is fair in the context of Benesse’s muted outlook. 

Fujisoft Tender Offer for Listed Sub Cybernet (4312) – This Is Too Cheap

By Travis Lundy

  • Fuji Soft Inc (9749 JP), as target of activist-ish investor 3D Investment Partners, launched a “Special Committee to Increase Corporate Value” in August 2022. They reported in Nov22 and Feb23. 
  • They also reported in Aug23, mentioning the four listed subs and synergies. Last week, Fujisoft announced it was buying them all out.
  • Cybernet Systems Co (4312 JP)  is one of the two larger ones. It is being done too cheaply. Waaay too cheaply. It would not be impossible to block.

Celltrion (068270 KS): Record High Revenue and Operating Profit in 3Q23 Solidify Merger Stance

By Tina Banerjee

  • In 3Q23, Celltrion Inc (068270 KS) reported revenue and operating profit of KRW672B (+4% YoY) and KRW268B (+25% YoY), respectively, driven by broad-based growth across biosimilar portfolio and CMO revenue.
  • Operating profit margin is approaching 40% level, highest level in last two years, driven primarily by sales growth around high margin products. Net profit jumped 33% YoY to KRW221B.
  • In Oct’23, Celltrion received FDA approval for Zympentra, which is Celltrion’s first product approved as a new drug in the U.S., and is expected to receive patent protection until 2040.

Vinx Corp (3784) TOB by Parent Fujisoft (9749) – A Bit Cheap, Impossible To Block

By Travis Lundy

  • Fuji Soft Inc (9749 JP), as target of activist-ish investor 3D Investment Partners, launched a “Special Committee to Increase Corporate Value” in August 2022. They reported in Nov22 and Feb23. 
  • They also reported in Aug23, mentioning the four listed subs and synergies. Last week, Fujisoft announced it was buying them all out.
  • Vinx Corp (3784 JP) is one of the two larger ones. It is being done too cheaply, but it would be nigh impossible to block. A safe deal. 

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Nov 12
0

Daily Brief Australia: Boss Resources and more

By | Australia, Daily Briefs

In today’s briefing:

  • Quiddity Leaderboard ASX Dec 23: Three ASX 200 Changes + Origin Energy Question Mark

Quiddity Leaderboard ASX Dec 23: Three ASX 200 Changes + Origin Energy Question Mark

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run up to the December 2023 Rebalance.
  • There are only five more working days left in the 6-month reference period for the December 2023 rebalance event. 
  • The expectations presented in this insight are my final expectations for December 2023.

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Nov 12
0

Daily Brief South Korea: Celltrion Inc, Eoflow , Enchem and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Celltrion (068270 KS): Record High Revenue and Operating Profit in 3Q23 Solidify Merger Stance
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: CMIC, IRC, Allkem, Benesse, Southern Cross, EOFlow, Shidax
  • TIGER Battery Material ETF Rebal in December: Notable Changes in Constituent Screening

Celltrion (068270 KS): Record High Revenue and Operating Profit in 3Q23 Solidify Merger Stance

By Tina Banerjee

  • In 3Q23, Celltrion Inc (068270 KS) reported revenue and operating profit of KRW672B (+4% YoY) and KRW268B (+25% YoY), respectively, driven by broad-based growth across biosimilar portfolio and CMO revenue.
  • Operating profit margin is approaching 40% level, highest level in last two years, driven primarily by sales growth around high margin products. Net profit jumped 33% YoY to KRW221B.
  • In Oct’23, Celltrion received FDA approval for Zympentra, which is Celltrion’s first product approved as a new drug in the U.S., and is expected to receive patent protection until 2040.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: CMIC, IRC, Allkem, Benesse, Southern Cross, EOFlow, Shidax

By David Blennerhassett

TIGER Battery Material ETF Rebal in December: Notable Changes in Constituent Screening

By Sanghyun Park

  • Based on the latest closing prices, the potential INs/OUTs are as follows. INs: Soulbrain & Enchem / OUTs: Chunbo & Solus Advanced Materials
  • While the overall market liquidity constraints due to the short-selling ban could exacerbate the price impact on the rebalancing day, it may reduce the flexibility of our Long-Short setup strategies.
  • While Chunbo carries single-stock futures, its liquidity may not be sufficient. So, a more creative Long-Short approach is required, taking into account these factors.

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Nov 12
0

Daily Brief United States: SIGA Technologies and more

By | Daily Briefs, United States

In today’s briefing:

  • SIGA Technologies – International momentum building towards year-end

SIGA Technologies – International momentum building towards year-end

By Edison Investment Research

SIGA recapped several key developments in its Q3 update, signalling strong top-line momentum going into Q423. Most notably, the recent $18m procurement deal with the European Health Emergency Preparedness and Response Authority (HERA) has surprised to the upside, with more value to be unlocked, in our opinion. With upcoming BARDA (oral and IV TPOXX), Department of Defense (DoD) and HERA deliveries, Q423 will likely be a busy quarter for SIGA. We have increased our FY23 product revenue estimates to c $164m ($155m previously) to reflect the HERA orders, although this has been offset by lower R&D revenue estimates ($8.9m vs $20.5m previously) following the receipt of the final payment under the PEP research contract with the DoD (in Q323). Management continues to target the PEP regulatory submission in 2024 (despite undertaking a trial data reanalysis) and we view this as a next significant milestone for SIGA. Incorporating the results and latest net cash figure, our valuation adjusts to $17.24/share ($17.46/share previously).

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Nov 12
0

Daily Brief China: Semiconductor Manufacturing International Corp (SMIC), Asymchem Laboratories Tianjin, Tencent and more

By | China, Daily Briefs

In today’s briefing:

  • SMIC (SEHK: 00981; SSE Star Market: 688981): Back to Reality
  • China Healthcare Weekly (Nov.10) – 9th National VBP, Cyclicity of CXO Sector, Asymchem, Hengrui
  • Index Rebalance & ETF Flow Recap: SSE50, Chinext/50, Renesas, Tencent, Amman Mineral

SMIC (SEHK: 00981; SSE Star Market: 688981): Back to Reality

By Scott Foster

  • Reports emphasizing that SMIC fell short of 3Q expectations don’t make much sense. The real test starts this quarter with 7nm smart phone processors for Huawei in mass production.
  • Profits are under pressure from low capacity utilization, rising depreciation and continued high investment. Cash flow is adequate. The balance sheet is sound.
  • The share price dropped 6.8% on Friday after rising 44% from late August to early November. 4Q guidance points to near-zero operating and net profit. Recovery will take time.

China Healthcare Weekly (Nov.10) – 9th National VBP, Cyclicity of CXO Sector, Asymchem, Hengrui

By Xinyao (Criss) Wang

  • Results of 9th national VBP was released. The average price reduction was 58% and the maximum price reduction was over 90%. Hengrui (600276 CH)‘s challenge in VBP has just begun.
  • The whole CXO sector is more like a cyclical industry than a high-barrier industry. There’re still some pressures/risks have not been fully released. Its future may be darker than before.
  • Asymchem’s stock price performance follows the entire CXO sector. Whether Asymchem can obtain large Tirzepatide orders and provide investors with high certainty of outlook is the key for valuation reversal.

Index Rebalance & ETF Flow Recap: SSE50, Chinext/50, Renesas, Tencent, Amman Mineral

By Brian Freitas

  • Wednesday will be a busy day as positions are put on and unwound following announcement of the changes to the MSC indices.
  • Friday will end the review cutoff for the ASX indices and Hang Seng Indexes will announce the December changes for the HSI, HSCEI, HSTECH and HSCI post market close.
  • Another week of large outflows for China focused ETFs with redemptions across all the major indices.

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Nov 12
0

Daily Brief Japan: Cybernet Systems Co, Benesse Holdings, Vinx Corp, Descente Ltd, Shidax Corp, Ps Mitsubishi Construction, Renesas Electronics, TSE Tokyo Price Index TOPIX and more

By | Daily Briefs, Japan

In today’s briefing:

  • Fujisoft Tender Offer for Listed Sub Cybernet (4312) – This Is Too Cheap
  • Benesse Holdings (9783 JP): EQT Backed Pre-Conditional MBO Tender Offer at JPY2,600
  • Vinx Corp (3784) TOB by Parent Fujisoft (9749) – A Bit Cheap, Impossible To Block
  • Last Week in Event SPACE: Korea’s Short Selling, Hollysys, Sankyo, Descente
  • Shidax Corporation (4837 JP): MBO Tender Offer at JPY800
  • Taisei Corp (1801) Partial Tender for PS Mitsubishi Construction (1871)
  • ECM Weekly (12th Nov 2023)-Renesas, Bajaj, Alchip, Hybe, Will, Wuxi, ChaPanda, Chenqi, Cello, Honasa
  • Preparation in Advance for In-Depth Discussions Is Important for Both Investors and Managers
  • Benesse (9783) MBO – ¥2600/Share Is Up 40+% But It Is Still the Wrong Price

Fujisoft Tender Offer for Listed Sub Cybernet (4312) – This Is Too Cheap

By Travis Lundy

  • Fuji Soft Inc (9749 JP), as target of activist-ish investor 3D Investment Partners, launched a “Special Committee to Increase Corporate Value” in August 2022. They reported in Nov22 and Feb23. 
  • They also reported in Aug23, mentioning the four listed subs and synergies. Last week, Fujisoft announced it was buying them all out.
  • Cybernet Systems Co (4312 JP)  is one of the two larger ones. It is being done too cheaply. Waaay too cheaply. It would not be impossible to block.

Benesse Holdings (9783 JP): EQT Backed Pre-Conditional MBO Tender Offer at JPY2,600

By Arun George

  • Benesse Holdings (9783 JP) has recommended an EQT-backed pre-conditional MBO offer of JPY2,600 per share, a 45.1% and 36.3% premium to the undisturbed price and last close, respectively.
  • The pre-conditions primarily relate to Japanese and Chinese approvals, which can be waived. Chinese SAMR approval should be forthcoming as education is not a geopolitical fraught sector.
  • The offer is long-dated and opens in early February 2024. While not a knockout bid, the offer is fair in the context of Benesse’s muted outlook. 

Vinx Corp (3784) TOB by Parent Fujisoft (9749) – A Bit Cheap, Impossible To Block

By Travis Lundy

  • Fuji Soft Inc (9749 JP), as target of activist-ish investor 3D Investment Partners, launched a “Special Committee to Increase Corporate Value” in August 2022. They reported in Nov22 and Feb23. 
  • They also reported in Aug23, mentioning the four listed subs and synergies. Last week, Fujisoft announced it was buying them all out.
  • Vinx Corp (3784 JP) is one of the two larger ones. It is being done too cheaply, but it would be nigh impossible to block. A safe deal. 

Last Week in Event SPACE: Korea’s Short Selling, Hollysys, Sankyo, Descente

By David Blennerhassett

  • The Korean Financial Services Commission and the Financial Supervisory Service held a press briefing, unveiling the comprehensive prohibition of short selling from the 6th November, until June 30th next year.
  • Recco or Ascendant for Hollysys (HOLI US)? Ascendant could easily get >50% of shares out, and spill the board. Recco, with no shares held, looks to have a weaker hand. 
  • Sankyo (6417 JP) is cheap. It will never trade at 20x expected PER because of the nature of the business; right now, on an ex-cash basis, it trades 1.6x ex-cash PER.

Shidax Corporation (4837 JP): MBO Tender Offer at JPY800

By Arun George

  • Shidax Corp (4837 JP) has recommended an MBO tender offer of JPY800 per share, a 10.3% premium to the undisturbed price (9 November).
  • After the settlement of the tender offer, Oisix ra daichi (3182 JP) will acquire a 66.0% stake in the offeror by way of third-party allotment at the tender offer price.
  • Despite the skinny premium, the offer is just shy of the ten-year share price high. The minimum acceptance condition requires a 12.5% minority acceptance rate.

Taisei Corp (1801) Partial Tender for PS Mitsubishi Construction (1871)

By Travis Lundy

  • Last week, as Ps Mitsubishi Construction (1871 JP) reported earnings, Taisei Corp (1801 JP) announced a Partial Offer for PS Mitsubishi, buying out Ube Cement & Taiheiyo Cement stakes.
  • Partial offers have recently traded well before the close, and badly after the result. As we near year-end, this one could trade a bit softer, suggesting a lower back end.
  • Shareholder Structure, Pro-ration analysis, and back end calculation grids below. 

ECM Weekly (12th Nov 2023)-Renesas, Bajaj, Alchip, Hybe, Will, Wuxi, ChaPanda, Chenqi, Cello, Honasa

By Sumeet Singh

Preparation in Advance for In-Depth Discussions Is Important for Both Investors and Managers

By Aki Matsumoto

  • TSE plans to publish a list of companies that disclosed and those that are “under consideration” for disclosure in “Management Conscious of Cost of Capital and Stock Price.” 
  • TSE’s plan to introduce actual investor feedback on how investors view dialogue and engagement and what kind of information disclosure and IR they expect from companies is commendable.
  • It is very important to know what investors actually want to know, what management is doing to achieve this, and how they should interact with investors in IR activities.

Benesse (9783) MBO – ¥2600/Share Is Up 40+% But It Is Still the Wrong Price

By Travis Lundy

  • Just before the close Friday, the Nikkei reported Benesse Holdings (9783 JP) would be the subject of an MBO in order to restructure the flagging private shinken-zemi business. And grow.
  • It turns out it is EQT and the Fukutake family at ¥2600/share – a 2-year high. Wow. It is also a ridiculously cheap price given the assets and money flows.
  • I expect this may get some people upset as the valuation methodology is dodgy and the artful (hehehe) Balance Sheet has some easter eggs, and spotted pumpkins… or something. 

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Nov 12
0

Daily Brief Industrials: Semiconductor Manufacturing International Corp (SMIC), Ps Mitsubishi Construction and more

By | Daily Briefs, Industrials

In today’s briefing:

  • SMIC (SEHK: 00981; SSE Star Market: 688981): Back to Reality
  • Taisei Corp (1801) Partial Tender for PS Mitsubishi Construction (1871)

SMIC (SEHK: 00981; SSE Star Market: 688981): Back to Reality

By Scott Foster

  • Reports emphasizing that SMIC fell short of 3Q expectations don’t make much sense. The real test starts this quarter with 7nm smart phone processors for Huawei in mass production.
  • Profits are under pressure from low capacity utilization, rising depreciation and continued high investment. Cash flow is adequate. The balance sheet is sound.
  • The share price dropped 6.8% on Friday after rising 44% from late August to early November. 4Q guidance points to near-zero operating and net profit. Recovery will take time.

Taisei Corp (1801) Partial Tender for PS Mitsubishi Construction (1871)

By Travis Lundy

  • Last week, as Ps Mitsubishi Construction (1871 JP) reported earnings, Taisei Corp (1801 JP) announced a Partial Offer for PS Mitsubishi, buying out Ube Cement & Taiheiyo Cement stakes.
  • Partial offers have recently traded well before the close, and badly after the result. As we near year-end, this one could trade a bit softer, suggesting a lower back end.
  • Shareholder Structure, Pro-ration analysis, and back end calculation grids below. 

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Nov 12
0

Daily Brief Energy/Materials: Enchem, Boss Resources and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • TIGER Battery Material ETF Rebal in December: Notable Changes in Constituent Screening
  • Quiddity Leaderboard ASX Dec 23: Three ASX 200 Changes + Origin Energy Question Mark

TIGER Battery Material ETF Rebal in December: Notable Changes in Constituent Screening

By Sanghyun Park

  • Based on the latest closing prices, the potential INs/OUTs are as follows. INs: Soulbrain & Enchem / OUTs: Chunbo & Solus Advanced Materials
  • While the overall market liquidity constraints due to the short-selling ban could exacerbate the price impact on the rebalancing day, it may reduce the flexibility of our Long-Short setup strategies.
  • While Chunbo carries single-stock futures, its liquidity may not be sufficient. So, a more creative Long-Short approach is required, taking into account these factors.

Quiddity Leaderboard ASX Dec 23: Three ASX 200 Changes + Origin Energy Question Mark

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run up to the December 2023 Rebalance.
  • There are only five more working days left in the 6-month reference period for the December 2023 rebalance event. 
  • The expectations presented in this insight are my final expectations for December 2023.

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Nov 12
0

Daily Brief TMT/Internet: Cybernet Systems Co, Vinx Corp, Gigabyte Technology, Tencent, Renesas Electronics and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Fujisoft Tender Offer for Listed Sub Cybernet (4312) – This Is Too Cheap
  • Vinx Corp (3784) TOB by Parent Fujisoft (9749) – A Bit Cheap, Impossible To Block
  • What Early Indicators from the Reported Oct 23 Taiwan Semi Sales
  • Index Rebalance & ETF Flow Recap: SSE50, Chinext/50, Renesas, Tencent, Amman Mineral
  • ECM Weekly (12th Nov 2023)-Renesas, Bajaj, Alchip, Hybe, Will, Wuxi, ChaPanda, Chenqi, Cello, Honasa

Fujisoft Tender Offer for Listed Sub Cybernet (4312) – This Is Too Cheap

By Travis Lundy

  • Fuji Soft Inc (9749 JP), as target of activist-ish investor 3D Investment Partners, launched a “Special Committee to Increase Corporate Value” in August 2022. They reported in Nov22 and Feb23. 
  • They also reported in Aug23, mentioning the four listed subs and synergies. Last week, Fujisoft announced it was buying them all out.
  • Cybernet Systems Co (4312 JP)  is one of the two larger ones. It is being done too cheaply. Waaay too cheaply. It would not be impossible to block.

Vinx Corp (3784) TOB by Parent Fujisoft (9749) – A Bit Cheap, Impossible To Block

By Travis Lundy

  • Fuji Soft Inc (9749 JP), as target of activist-ish investor 3D Investment Partners, launched a “Special Committee to Increase Corporate Value” in August 2022. They reported in Nov22 and Feb23. 
  • They also reported in Aug23, mentioning the four listed subs and synergies. Last week, Fujisoft announced it was buying them all out.
  • Vinx Corp (3784 JP) is one of the two larger ones. It is being done too cheaply, but it would be nigh impossible to block. A safe deal. 

What Early Indicators from the Reported Oct 23 Taiwan Semi Sales

By Andrew Lu

  • More y/y improvement (or decline deceleration) for PC/server, power management IC (PMIC), CMOS sensor/touch controller, GaAs RF/VCSEL, gaming GPU card, memory, and foundry vendors
  • GaAs RF/VCSEL and gaming GPU card vendors saw very impressive sales growth, driven by new phones introduction and rush orders to use NVIDIA RTX 4090 gaming card for AI training.
  • Stronger than expected Oct for TSMC and Gigabyte might drive 4Q sales and near term share price upside; Visera, Andes Tech, and AP Memory might see sales and price downside.

Index Rebalance & ETF Flow Recap: SSE50, Chinext/50, Renesas, Tencent, Amman Mineral

By Brian Freitas

  • Wednesday will be a busy day as positions are put on and unwound following announcement of the changes to the MSC indices.
  • Friday will end the review cutoff for the ASX indices and Hang Seng Indexes will announce the December changes for the HSI, HSCEI, HSTECH and HSCI post market close.
  • Another week of large outflows for China focused ETFs with redemptions across all the major indices.

ECM Weekly (12th Nov 2023)-Renesas, Bajaj, Alchip, Hybe, Will, Wuxi, ChaPanda, Chenqi, Cello, Honasa

By Sumeet Singh

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Nov 12
0

Daily Brief Industrials: Semiconductor Manufacturing International Corp (SMIC), Ps Mitsubishi Construction and more

By | Daily Briefs, Industrials

In today’s briefing:

  • SMIC (SEHK: 00981; SSE Star Market: 688981): Back to Reality
  • Taisei Corp (1801) Partial Tender for PS Mitsubishi Construction (1871)

SMIC (SEHK: 00981; SSE Star Market: 688981): Back to Reality

By Scott Foster

  • Reports emphasizing that SMIC fell short of 3Q expectations don’t make much sense. The real test starts this quarter with 7nm smart phone processors for Huawei in mass production.
  • Profits are under pressure from low capacity utilization, rising depreciation and continued high investment. Cash flow is adequate. The balance sheet is sound.
  • The share price dropped 6.8% on Friday after rising 44% from late August to early November. 4Q guidance points to near-zero operating and net profit. Recovery will take time.

Taisei Corp (1801) Partial Tender for PS Mitsubishi Construction (1871)

By Travis Lundy

  • Last week, as Ps Mitsubishi Construction (1871 JP) reported earnings, Taisei Corp (1801 JP) announced a Partial Offer for PS Mitsubishi, buying out Ube Cement & Taiheiyo Cement stakes.
  • Partial offers have recently traded well before the close, and badly after the result. As we near year-end, this one could trade a bit softer, suggesting a lower back end.
  • Shareholder Structure, Pro-ration analysis, and back end calculation grids below. 

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