In today’s briefing:
- [Japan Event] Sony Financial (8729 JP) Overhang Hangs Over, Company Buys Back, ADR Selldown Awaits?
- Jardine Matheson (JML SP): Additional Office Recycling Speculated
- Soft99 Corp (4464 JP): Hope and Despair as the MBO Close Extended
- LG Electronics India IPO: Big Market Cap, Small Float -> Small Passive Flows
- Sammaan Capital: Is Abu Dhabi’s $1.06 Billion Bet the Start of a New Era?
- I-Net Corp (9600 JP): ORIX Corp (8591 JP)’s Tender Offer at JPY2,530
- [Japan M&A/Activism] Soft99 Plummets, Rebounds, Activist Rebuts, KeePer Lab Holds, MBO Extends
- Daiseki Eco. Solution (1712 JP): Daiseki (9793 JP)’s Tender Offer at JPY1,850
- FONAR Privatization Proposal: 13% Spread, Potential Price Increase, and Strategic Family Control
- Current Active Quick Pitches: Mergers, Acquisitions, Tender Offers, and More
[Japan Event] Sony Financial (8729 JP) Overhang Hangs Over, Company Buys Back, ADR Selldown Awaits?
- Sony Financial Group (8729 JP) listed on Monday with a “Reference Price of ¥150. It opened at ¥205, quickly running to ¥210, then fell to ¥198 by lunch. Close? ¥173.8.
- That got a big ToSTNeT-3 buyback at ¥173.8. It traded lower on Day 2, closing at ¥164. Then lower still on Weds with another TN-3 buyback now ¥159.4.
- Neither buyback was full. SFGI has bought back 124mm shares. But the stock has fallen hard. ADRs/ADSs start trading Tuesday. That could see more selling.
Jardine Matheson (JML SP): Additional Office Recycling Speculated
- The prior MO for the Jardines group was never sell your commercial buildings. This year marks a paradigm shift in that line of thinking.
- First Hongkong Land (HKL SP) sold nine floors of One Exchange Square to HKEX (388 HK). The first such sale since 1988.
- Now Mandarin Oriental (MAND SP) is negotiating the sale of “certain office space” at One Causeway Bay. Jardine Matheson (JM SP)‘s NAV discount and implied stub are at 12-month lows/highs.
Soft99 Corp (4464 JP): Hope and Despair as the MBO Close Extended
- Soft99 Corp (4464 JP) announced that the close of the MBO offer period has been extended from 2 to 17 October. There are two key takeaways from the announcement.
- First, KeePer has not yet tendered its shares, despite providing an irrevocable. Second, the non-KeePer acceptances have increased from 6,108,200 shares on September 18 to 6,598,149 shares on October 2.
- The chances that KeePer accepts the Effissimo offer have increased. However, the current non-KeePer acceptances of the MBO make it highly challenging for Effissimo to succeed. Take profits.
LG Electronics India IPO: Big Market Cap, Small Float -> Small Passive Flows
- LG Electronics India (123D IN) is looking to list on the exchanges by selling 101.8m shares at a valuation of US$8.7bn and raising around US$1.3bn in its IPO.
- The new valuation is around 24% lower than the rumoured valuation at the time of the DRHP filing last December.
- 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.
Sammaan Capital: Is Abu Dhabi’s $1.06 Billion Bet the Start of a New Era?
- Sammaan Capital’s Board approved a preferential issue to Avenir Investment RSC Ltd., a wholly-owned subsidiary of Abu Dhabi’s IHC, aggregating INR 8,850 crore (USD 1.06 billion) in equity and warrants.
- The strategic inflow from the well-capitalized, sovereign-linked IHC provides a massive de-risking event, validates Sammaan’s new-book strategy, and signals a powerful new stream of capital flows into Indian HFC/NBFC space.
- The scale, strategic nature, and pricing of the deal position Sammaan for a significant re-rating, shifting the investment thesis from asset quality clean-up to funded growth.
I-Net Corp (9600 JP): ORIX Corp (8591 JP)’s Tender Offer at JPY2,530
- I Net Corp (9600 JP) has recommended a tender offer from Orix Corp (8591 JP) at JPY2,530, a 53.4% premium to the last close.
- The offer is attractive as it is above the midpoint of the target IFA DCF valuation range and represents an all-time high.
- Despite the high required minority tendering rate, an attractive offer facilitates completion. The tender runs from 3 October to 17 November.
[Japan M&A/Activism] Soft99 Plummets, Rebounds, Activist Rebuts, KeePer Lab Holds, MBO Extends
- On 25 September, with the stock trading just below Effissimo’s terms, the Soft99 Corp (4464 JP) Board came out AGAINST the Effissimo proposal 66% higher than the MBO terms.
- The fine print said that the Soft99 deal had enough shares to get over the line assuming Keeper Labs tendered according to agreement due to Board Support. Shares plummeted.
- Effissimo issued a stunning rebuttal which showed Board incompetence/negligence, possible breach of fiduciary duty. Today, MBO Bidco extended, the stock popped, but details are key.
Daiseki Eco. Solution (1712 JP): Daiseki (9793 JP)’s Tender Offer at JPY1,850
- Daiseki Eco. Solution (1712 JP) has recommended a tender offer from Daiseki Co Ltd (9793 JP) at JPY1,850, a 54.3% premium to the last close.
- The offer is attractive as it is above the midpoint of the target IFA DCF valuation range and represents a three-year high.
- The low required minority tendering rate facilitates completion. The tender runs from 3 October to 17 November.
FONAR Privatization Proposal: 13% Spread, Potential Price Increase, and Strategic Family Control
- FONAR’s privatization offer at $17.25/share by controlling shareholders has a 13% spread, with potential for a price increase.
- The company, trading at 5x EBITDA, holds $54m net cash, covering a significant portion of the buyout cost.
- FONAR’s core diagnostic centers generate 92% of revenue; the unprofitable MRI manufacturing segment is operationally integrated.
Current Active Quick Pitches: Mergers, Acquisitions, Tender Offers, and More
- Chorus Aviation is repurchasing 8% of shares at C$23.00–C$25.00, offering C$45 risk-free upside; tender expires November 10.
- STAAR Surgical’s largest shareholder opposes Alcon’s $28/share acquisition, potentially forcing a higher bid before October 23 meeting.
- Forian’s $2.10/share go-private proposal by a founder-led consortium is under review, with shares trading at offer price.
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