In today’s briefing:
- [Japan M&A] Senko Group (9069 JP) Bids for Maruwn (9067 JP) In Deal Which May Trigger Fireworks
- StubWorld: Zijin Mining (2899 HK) Is Still Out Of Whack
- Maruwn (9067 JP): Senko Group (9069 JP)’s Preconditional Tender Offer
- [Japan M&A] EQT TOB for Fujitec (6406 JP) Starts 10 Weeks Early – No Overbid, No Excitement
- Seven West Media (SWM AU): 22nd Dec Vote On Southern Cross (SXL AU)’s Offer
[Japan M&A] Senko Group (9069 JP) Bids for Maruwn (9067 JP) In Deal Which May Trigger Fireworks
- Today, logistics company SENKO Group Holdings Co., Ltd. (9069 JP) announced a bid for logistics company Maruwn Corp (9067 JP) with help from 35% holder JX Advanced Metals (5016 JP).
- The TOB only needs 11+% to get to 50.1%. There are three holders who Senko clearly regard as not necessarily agreeable to the deal. They hold 28.0% between them.
- If someone wanted to thwart this deal, there are a number of ways to do it. This could get interesting.
StubWorld: Zijin Mining (2899 HK) Is Still Out Of Whack
- Zijin Gold (2259 HK) is up 101% on its 29th September listing. By my estimate, Zijin Mining (601899 CH)‘s average premium to NAV since Zijin Gold’s listing has been ~21%.
- Preceding further commentary on Zijin Mining/Gold 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%.
Maruwn (9067 JP): Senko Group (9069 JP)’s Preconditional Tender Offer
- Maruwn Corp (9067 JP) has recommended a preconditional tender offer from SENKO Group Holdings Co., Ltd. (9069 JP) at JPY949, a 34.6% premium to the last close price.
- The offer is attractive as it is above the midpoint of the IFA DCF valuation range, represents an all-time high and implies a P/B of 1.08x.
- The key pushback is that Senko has not set the lower limit to achieve two-thirds voting rights. However, tendering by the second-largest shareholder will meet the lower limit.
[Japan M&A] EQT TOB for Fujitec (6406 JP) Starts 10 Weeks Early – No Overbid, No Excitement
- 12mos ago the FT had an article suggesting PE might launch a bid foe Fujitec Co Ltd (6406 JP). 9mos later, EQT did at the same price as 9mos earlier.
- There were some suggestions the deal would see an overbid. That was quashed early. It never traded through terms early on.
- This looks like a done deal to me. I think this sails through by year-end.
Seven West Media (SWM AU): 22nd Dec Vote On Southern Cross (SXL AU)’s Offer
- Back on the 30th September, television broadcaster and publisher Seven West Media (SWM AU) entered into a Scheme with radio network play Southern Cross Media (SXL AU).
- SXL will issue 0.1552 new shares for every SWM share. Should the Scheme get up, SXL will hold 50.1% of the combined entity and SWM the remainder.
- The Scheme Booklet is now out, with a Scheme Meeting on the 22nd December, and expected implementation on the 7th January. The IE (Lonergan) says “fair & reasonable“. Clean deal.
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