In today’s briefing:
- ANE (9956 HK): Centurium/Temasek’s Clean Offer
- SCSK Corp (9719 JP): Sumitomo (8053 JP)’s Attractive Tender Offer at JPY5,700
- Sanil Electric Poised for Pop on Nov 20 KOSPI200 Ad‑Hoc (HD Hyundai Merger)
- AUB Group (AUB AU) Opens Books To EQT’s NBIO
- SK Square: Selling Its Stake in 11st to SK Planet
- SCSK Corp (9719 JP): Sumitomo (8053 JP)’s Rumoured Privatisation Offer
- Groww IPO: Growwing Fast; Index Inclusions Will Be Sloww; Small Floww
- Cipla-Eli Lilly Deal: Strategic Masterstroke or Margin Mirage?
- Bavarian Nordic: Final Offer, Tight Math
- Johnson & Johnson (NYSE: JNJ) To Spin Off Orthopaedics Business
ANE (9956 HK): Centurium/Temasek’s Clean Offer
- After ANE Cayman Inc (9956 HK), a road freight transportation play, was suspended pursuant to the Takeovers Code, an Offer from PE outfit Centurium Partners, a pre-IPO investor, was expected.
- And this is what unfolded. Centurium, together with Temasek and Singapore-based asset manager True Light, are offering HK$12.18/share (best & final) via a Scheme, a 48.54% premium to undisturbed.
- A scrip alternative is present (mix & match). This is a pre-conditional Offer: it requires SAMR signing off. The FA is JPM. This should help smooth over the reg process.
SCSK Corp (9719 JP): Sumitomo (8053 JP)’s Attractive Tender Offer at JPY5,700
- In response to the Nikkei report, Scsk Corp (9719 JP) has recommended a tender offer from Sumitomo Corp (8053 JP) at JPY5,700, a 31.5% premium to the last close.
- The offer is attractive compared to precedent transactions, is above the midpoint of the IFA DCF valuation range and represents an all-time high.
- An attractive offer facilitates deal completion. The tender runs from 30 October to 12 December, with payment commencing from 19 December.
Sanil Electric Poised for Pop on Nov 20 KOSPI200 Ad‑Hoc (HD Hyundai Merger)
- HD Hyundai merger: both legs in index, Mipo delists, slot opens — one new name gets added to KOSPI200 via ad‑hoc.
- Sanil Electric (062040 KS) to replace HD Mipo pre‑Dec review. If DTV settles back into the 500–600k range, then KS200 ETFs will need to scoop ~0.3–0.4x DTV on Nov 26.
- Better to front‑run KRX; with AI power trade still hot, Nov 20 announcement likely sparks outsized price action vs waiting for rebalance print.
AUB Group (AUB AU) Opens Books To EQT’s NBIO
- AUB Group Limited (AUB AU), which operates a network of insurance “matchmakers”, has announced a NBIO, via a Scheme, from EQT @ A$45/share, a ~40% premium to undisturbed.
- That indicative price is up from $43/share proposed on the 13th September (but not made public).
- AUB’s board has opted to open its books to EQT, on an exclusive basis, for six weeks. Tentatively, that expires on or around the 9th December.
SK Square: Selling Its Stake in 11st to SK Planet
- On 29 October, SK Square announced that it is selling its stake in 11st to SK Planet. This is likely to have a slightly negative impact on SK Square.
- Given SK Planet’s limited financial resources, it is likely that SK Square will provide funding to SK Planet through a capital increase.
- However, the biggest factor driving SK Square’s share price right now is the continued surge in SK Hynix’s share price.
SCSK Corp (9719 JP): Sumitomo (8053 JP)’s Rumoured Privatisation Offer
- Today, the Nikkei reported that Sumitomo Corp (8053 JP) plans to privatise Scsk Corp (9719 JP) through a tender offer. Both shares were placed on a trading halt.
- The Nikkei states that the total acquisition cost would be around JPY800 billion, based on an arbitrary assumption that the offer will be around 20% above the undisturbed price.
- The privatisation is strategically sensible. The rumoured offer price of JPY5,109.60 is attractive compared to peer multiples and would represent an all-time high.
Groww IPO: Growwing Fast; Index Inclusions Will Be Sloww; Small Floww
- Groww (1573648D IN) is looking to list on the exchanges by selling 663.23m shares via a primary and secondary offering to raise US$752m at a valuation of US$7bn.
- The price band has been set at INR 95-100/share, and the issue is likely to price at the top end of the range.
- The stock will not get Fast Entry to global indices. Inclusion at regular rebalances will commence in June 2026 but flow will be small given the low float.
Cipla-Eli Lilly Deal: Strategic Masterstroke or Margin Mirage?
- Cipla Ltd (CIPLA IN) signed an exclusive distribution and promotion agreement with Eli Lilly on 23 October 2025 to market tirzepatide under the brand name Yurpeak in India.
- The deal positions Cipla as a first mover in India’s nascent GLP-1 obesity care segment, projected to grow 40x by 2030.
- Financially modest but strategically transformative, the deal anchors Cipla’s entry into obesity therapeutics and sets the stage for a broader GLP-1 platform spanning branded and generic drugs.
Bavarian Nordic: Final Offer, Tight Math
- Bidders Nordic Capital and Permira raised their offer to DKK 250/share (from DKK 233), but ATP’s 10% block and limited irrevocables complicate closing.
- Gross spread has widened to 5.71% (DKK 236.5 close on 28 Oct), reflecting rising uncertainty. Implied success probability is now ~76.5%.
- High upside if completed, but downside risk remains to pre-deal levels (DKK 192.5). Time to settlement is short, pushing annualized return to ~151%.
Johnson & Johnson (NYSE: JNJ) To Spin Off Orthopaedics Business
- Separation should unlock value by allowing J&J to double-down on high-growth, higher-margin MedTech and pharma businesses.
- SpinCo will emerge as one of the world’s largest pure-play orthopaedics firm with ~$9B revenue and global leadership across hips, knees, and trauma.
- We see valuation upside. Transaction is likely to enhance JNJ’s sum-of-the-parts value.
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