In today’s briefing:
- 7&I (3382) – MBO Off, SC “Engaging Constructively with ACT”, Skepticism Higher, Questions And More
- JPH Launches “MBO” (LBO with SARs for Family/Execs) For Trucker Tonami Holdings (9070). Too Cheap.
- SpringWorks Therapeutics in Advanced Acquisition Talks with Merck KGaA Amid FDA Approval and Growth Potential
- Event Driven: UltraTech’s Bold Foray into Wires & Cables 80,000+ Cr Market
- Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (January and February 2025)
7&I (3382) – MBO Off, SC “Engaging Constructively with ACT”, Skepticism Higher, Questions And More
- The MBO is off. Itochu Corp (8001 JP) has apparently not been able to agree with Ito-san on board composition/representation and management control. That the MBO is off isn’t surprising.
- 7&i says they “continue to engage constructively with ACT and alternate proposals but news articles suggest that almost 6mos after proposing an NDA, ACT still haven’t had access to financials.
- The shares are off hard today to a level below where ACT’s first bid was considered “not even worth discussing”. There will be questions at the AGM and before.
JPH Launches “MBO” (LBO with SARs for Family/Execs) For Trucker Tonami Holdings (9070). Too Cheap.
- Yesterday, Japan Post Holdings (6178 JP) announced an MBO for Tonami Holdings (9070 JP) whereby the family/execs will stay on. JPH will own 99.97%, the execs/family 0.03%.
- This deal is yet another in a line of logistics deals dating back the last 2+ years where the premium has been quite big. This time is +74%.
- But this is not overly expensive. Makes me go hmmmm…
SpringWorks Therapeutics in Advanced Acquisition Talks with Merck KGaA Amid FDA Approval and Growth Potential
- SpringWorks Therapeutics is in advanced acquisition talks with Merck KGaA, following FDA approval for its drug Gomekli.
- Merck’s acquisition strategy focuses on low-risk, value-creating oncology deals, aligning with SpringWorks’ FDA-approved treatments.
- Estimated peak sales for SpringWorks’ drugs range from $600m to $1bn, suggesting a potential $85/share valuation.
Event Driven: UltraTech’s Bold Foray into Wires & Cables 80,000+ Cr Market
- UltraTech Cement, part of the Aditya Birla Group, is entering the 80,000+ crore wires & cables market with INR 1,800 crore investment, targeting a December 2026 plant launch in Gujarat.
- The sector is highly fragmented, with no dominant player exceeding 20% market share, creating an opportunity for UltraTech to disrupt with its financial strength, backward integration, and superior product quality.
- This move positions UltraTech as a diversified building materials leader, leveraging synergies with Hindalco to offer cost-efficient, high-quality electrical solutions, reshaping competition in the industry.
Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (January and February 2025)
- In this insight, we discuss the alpha generation through companies that announced share buybacks in the Korean stock market in January and February 2025.
- There were 37 companies in the Korean stock market that announced share buybacks in the past two months. On average, the share buyback announcements represented 2.3% of outstanding shares.
- Some of the notable share buybacks by Korean companies in the past two months include Samsung Electronics, Celltrion, Hyundai Mobis, and INFOvine.
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