In today’s briefing:
- Hynix L2 Flag Risk: Why Stuck Below ₩620k? Eyes on Nov 17 Pivot
- [Japan M&A] Paris Miki Is Indeed an MBO Target; Luxottica May Complain But Tough To Block
- Paris Miki (7455 JP): Chairman-Led MBO Likely Done Despite Luxottica’s Unclear Intentions
- Star Micronics (7718 JP): Taiyo Pacific’s Tender Offer at JPY2,210
- [Japan M&A] Taiyo Pacific Offers ¥2,210 for Star Micronics (7718) Completing the Shareholder Ripoff
- MBK Partners: Acquires Additional 2.7% Stake in Korea Zinc – Another M&A Fight in March 2026?
- Private Equity Consortium Eyes AUB Group Buyout Amid Insurance Brokerage Consolidation and Fair Valuation Offer
- Seven West Media (SWM AU): Scheme Vote on 22 December
- First Pacific (142 HK)’s Full Value As Maynilad Commences Trading
- Porsche Automobile Holding: Q3-25 Update — Discount Still Wide, Deleveraging on Track
Hynix L2 Flag Risk: Why Stuck Below ₩620k? Eyes on Nov 17 Pivot
- Hynix tagged L2: cash‑only, no margin. >40% two‑day rip triggers KRX halt. L2 caps distort tape; Square’s Oct 27–Nov 10 run showed the messy playbook.
- Hynix L2 review: five >200% YoY prints since Nov 4, but no fresh 15‑day high—₩620k from Nov 3 still the cap, yesterday stalled just below.
- Break above ₩620k likely triggers L2, leverage caps, volatile tape, Square outperformance; hold below into Monday kills L2 risk, keeps Hynix’s relative bid with retail still piling in.
[Japan M&A] Paris Miki Is Indeed an MBO Target; Luxottica May Complain But Tough To Block
- Today after the close, Paris Miki Holdings (7455 JP) announced the Tane family Holdco would buy out the company in an “MBO” at ¥581, or 4.8x current year EBITDA.
- World famous eyeglass/sunglass manufacturer Luxottica bought 13.8% of the company in the low ¥300s almost stopping about a year ago. They might complain, but Paris Miki is a big outlet.
- This looks like it gets done. The family+crossholders+ESOP+warrants have 65% of the expanded share count. Those who would complain would need to do so soon, and loudly.
Paris Miki (7455 JP): Chairman-Led MBO Likely Done Despite Luxottica’s Unclear Intentions
- Paris Miki Holdings (7455 JP) has recommended a Chairman-led MBO at JPY581, a 48.6% premium to the last close price.
- While the offer is arguably light as it is marginally below book value (P/B of 0.99x), it is above the midpoint of the IFA DCF valuation range.
- The offer represents a 10-year high. Luxottica Group (LUX IM), the second-largest shareholder, has not signalled whether it will tender, but it would struggle to derail the offer.
Star Micronics (7718 JP): Taiyo Pacific’s Tender Offer at JPY2,210
- Star Micronics (7718 JP) has recommended a tender offer from Taiyo Pacific Partners at JPY2,210, a 29.1% premium to the last close price.
- The offer is arguably light as it is marginally above book value (P/B of 1.09x) and 16% below the midpoint of the target IFA DCF valuation range.
- However, the offer is attractive as it represents an all-time high and is 42.4% above Taiyo’s placement price in May 2025. Unless an activist emerges, this is likely done.
[Japan M&A] Taiyo Pacific Offers ¥2,210 for Star Micronics (7718) Completing the Shareholder Ripoff
- Today after the close, well-known Japan engagement fund Taiyo Pacific Partners announced a deal to buy Star Micronics (7718 JP) for ¥2,210/share. They’ve been involved small-big-small for 20yrs.
- The company launched a new capital plan and MTMP in February. Cash-rich, it needed no money to grow aggressively. So TPP proposed buying a third of the company. Board agreed.
- Despite ActionsToImplementManagementConsciousOfSharePriceAndCostOfCapital announced February, in April-November the Board decided to sell the entire company to TPP at <1x book. This is borderline outrageous. It deserves notice and complaint.
MBK Partners: Acquires Additional 2.7% Stake in Korea Zinc – Another M&A Fight in March 2026?
- MBK Partners acquired an additional 2.7% stake in Korea Zinc raising its total ownership to 39.7%. This is likely to fuel additional positive share price momentum on Korea Zinc.
- This is likely to rekindle a potential M&A fight for the management control of the company.
- This additional additional purchase of Korea Zinc by MBK Partners is a signal, not noise. Another M&A fight is likely in the next AGM in March 2026.
Private Equity Consortium Eyes AUB Group Buyout Amid Insurance Brokerage Consolidation and Fair Valuation Offer
- EQT’s A$45/share bid for AUB, with a 16% spread, follows a month of exclusive due diligence.
- CVC Asia Pacific proposed forming a consortium with EQT, potentially increasing buyout success likelihood and financial commitment sharing.
- AUB’s valuation metrics include 14.5x FY25 EBITDA and 26.2x P/E, with historical trading at lower multiples.
Seven West Media (SWM AU): Scheme Vote on 22 December
- The Seven West Media (SWM AU) IE considers the SXL merger offer to be in the best interests of its shareholders, absent a superior proposal.
- The merger requires approval from SWM shareholders, ACMA, and the ACCC. The ACCC’s findings will be announced on 18 December.
- The scheme vote is low risk as large SWM shareholders are supportive. Shares are trading through terms likely due to speculation of a competing bidder, which is unlikely to occur.
First Pacific (142 HK)’s Full Value As Maynilad Commences Trading
- The proposed spin-off – from 49.9%-held MPIC – and listing of Maynilad Water Services (MYNLD PH) completed on the 7th November.
- Priced at PHP 15/share, Maynilad closed yesterday at PHP 14.82/share, down 1.2%.
- First Pacific Co (142 HK)‘s indirect/direct holding in Maynilad is estimated at 19.1%, accounting for ~6% of NAV.
Porsche Automobile Holding: Q3-25 Update — Discount Still Wide, Deleveraging on Track
- Discount Opportunity: Porsche Automobil Holding (PAH3 GR) SE trades at a ~32% NAV discount—above peers—despite improving balance-sheet structure, stable dividends from VW and Porsche AG, and diminishing legal risks.
- Deleveraging Catalyst: Ongoing debt reduction, stronger dividend visibility, and extended maturities enhance transparency and reduce equity risk, offering clear scope for discount compression toward the mid-20s.
- Asymmetric Upside: With 99% of assets in VW and Porsche AG, Porsche SE remains a high-convexity play on discount normalization and legal clarity, offering leveraged exposure to core holdings.
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