In today’s briefing:
- Osaka Steel (5449) Large Buyback At a Discount Ruins Fun For Activists
- Chuoh Pack Industry (3952 JP): NIKKON (9072 JP) Offer’s 273% Premium Results from an Auction
- Fenix Resources (FEX AU) Q2 FY25 Update: Close to Tripling Production
- Empire Energy Group Ltd – Beetaloo catalysts coming in a rush
Osaka Steel (5449) Large Buyback At a Discount Ruins Fun For Activists
- Osaka Steel (5449 JP) is 65% owned by Nippon Steel Corporation (5401 JP). They make a relatively simple set of steel products used by shipbuilders, construction companies, and warehouse builders.
- Activist Effissimo Capital went over 5% in October 2016 and is still a top holder. Activist Strategic Capital went over 5% in December 2023 and now owns 10+% of votes.
- The “hope” had been that Nippon Steel buy out minorities and Osaka Steel would be rescued from mediocre capital returns. That was not to be. Activists are disappointed.
Chuoh Pack Industry (3952 JP): NIKKON (9072 JP) Offer’s 273% Premium Results from an Auction
- Chuoh Pack Industry (3952 JP) has recommended Nikkon Holdings (9072 JP)’s tender offer at JPY5,034, a 273.2% premium to the last close.
- The extraordinary premium resulted from a competitive auction, enabling Toyota Motor (7203 JP), the largest shareholder, to sell most of its stake.
- The offer is well above the target IFA’s DCF valuation range and more than double the all-time high. Stating the obvious, this is a done deal.
Fenix Resources (FEX AU) Q2 FY25 Update: Close to Tripling Production
- Fenix Resources (FEX AU) delivered impressive results for Q2 2025. Sales increased by 71% QoQ and 68% YoY, driven by the ramp-up of the Shine iron ore mine.
- The Beebyn-W11 mine, projected to ramp up production to 4 million tonnes from the current 2.5 million tonnes, is anticipated to receive final mining approval in the current quarter.
- Trading at 5.9x FY25e PE with 57 mn AUD in net cash, which accounts for 27% of its market capitalization, the stock is worth a look.
Empire Energy Group Ltd – Beetaloo catalysts coming in a rush
- RaaS has published an update report on NT-focused gas explorer/producer Empire Energy Group (ASX:EEG) following its recent quarterly report and operational update.
- The company is poised to commence the last phases of activity on the path to project startup.
- Having successfully cased and cemented the Carpentaria-5H (C-5H) well above expectation on time and horizontal section, securing debt financing and NT environmental approvals, we await the commencement of testing post the wet season and the granting of the ‘Beneficial Use of Test Gas’ agreement, with the traditional owners, which formally approves commercial gas sales.
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