In today’s briefing:
- [Japan M&A] Furukawa Battery (6937 JP) Take Private – Ugly Then, Ugly Still, But Now It’s On…
- Iress (IRE AU): Blackstone Mulling a Privatisation Bid
- StubWorld: PCCW’s Tenacious NAV Premium
- [Japan M&A] Air Water Takes over C.I. Medical (3540) – Done Deal, Not Bad
- Soul Patts/Brickworks: 10th September Vote To Collapse Circularity
- Tender Offer and Delisting of Kolon Mobility Group by Kolon Corp
- CI Medical (3540 JP): Air Water (4088 JP)’s Tender Offer Is a Done Deal
[Japan M&A] Furukawa Battery (6937 JP) Take Private – Ugly Then, Ugly Still, But Now It’s On…
- 54 weeks ago Advantage Partners and Furukawa Electric announced a deal to take Furukawa Electric (5801 JP) sub Furukawa Battery (6937 JP) private. The acquisition price was LOW.
- Minorities got more – more than book. But the deal included a payment delay allowing BVPS to rise 8.8% from the announcement date. No synergies.
- Furukawa Electric gets to buy back in at a price below book. And because there are cash and securities and lots of net receivables, the operating assets are well below.
Iress (IRE AU): Blackstone Mulling a Privatisation Bid
- The AFR reports that Blackstone (BX US) is considering a privatisation bid which could value Iress Ltd (IRE AU) at about A$1.9 billion (more than A$10 per share).
- Iress is no stranger to privatisation interest. In 2021, EQT (EQT SS) bid against itself thrice to offer A$15.91, before failing to table a binding proposal.
- The shareholder structure facilitates an offer. The rumoured offer is a good starting point, but it is far from a knockout bid.
StubWorld: PCCW’s Tenacious NAV Premium
- Despite the recent pullback, PCCW Ltd (8 HK) continues to trade at an unjustifiable premium to NAV.
- Preceding my comments on PCCW/ HKT Ltd (6823 HK) are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
[Japan M&A] Air Water Takes over C.I. Medical (3540) – Done Deal, Not Bad
- Today, Air Water Inc (4088 JP) and Ci Medical (3540 JP) announced that the CEO and Air Water who together own 85% would be taking over the company.
- That’s nice. That means it’s a done deal and nobody can do anything about it. Complain all you want, it’s done.
- Helpfully, the Board did its job (as did Shimizu-san – he’s selling most of his stake). This is not badly-priced for an ultimately coercive deal.
Soul Patts/Brickworks: 10th September Vote To Collapse Circularity
- Back on the 2 June 2025, Washington H. Soul Pattinson and Co. Ltd (SOL AU) and 42.92%-held Brickworks Ltd (BKW AU) announced that, via inter-conditional Schemes, they would merge.
- TopCo, a new ASX-listed company, will acquire all of the shares in SOL and BKW via the issuance of TopCo shares: 1:1 for SOL and 0.82:1 for BKW.
- The Scheme Booklet is now out, with Scheme Meetings on the 10th September, and expected implementation on or before the 23 September. The IE Kroll) says “fair & reasonable“.
Tender Offer and Delisting of Kolon Mobility Group by Kolon Corp
- Kolon Corp (002020 KS) announced that it is conducting a tender offer and delisting of Kolon Mobility Group (450140 KS).
- The tender offer prices are 4,000 won per common share (20.3% higher than current price) and 5,950 won per preferred share (25.3% higher than current price) for Kolon Mobility Group.
- The tender offer prices and stock swap ratios are especially attractive for Kolon Mobility Group shareholders.
CI Medical (3540 JP): Air Water (4088 JP)’s Tender Offer Is a Done Deal
- Ci Medical (3540 JP) has recommended a tender offer from Air Water Inc (4088 JP) at JPY1,500, a 48.5% premium to the last close.
- The offer is attractive compared to historical trading ranges and is above the mid-point of the IFA DCF valuation range.
- This is a done deal as the offeror and irrevocable represent an 85.02% ownership ratio, which ensures that the EGM vote for share consolidation will pass.
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