In today’s briefing:
- Mayne Pharma (MYX AU): This Is A Buy
- Shibaura Electronics (6957 JP): Minebea Secures Further Irrevocables as It Ponders a Revised Offer
- A Tender Offer of 6.2% Stake in KC Tech by KC Co
- Jilin Jiutai Bank (6122 HK): Now Is The Time To Be Delisted
- Sichuan Baicha Baidao Industrial IPO Lockup – Steep Losses for Pre-IPO Investors
- Devyani Intnl.: Yum Brands India Franchisee to Acquire Cloud Kitchen Operator. In Pursuit of Growth
- Millennium & Copthorne Hotels (MCK NZ): City Dev’s Final and Unconditional NZ$2.80 Offer
- Theratechnologies Faces Potential Buyout with 75% Premium Amid Strategic Review and Multiple Bids from Future Pak
- M & C Hotels (MCK NZ): City Dev Blinks & Bumps
Mayne Pharma (MYX AU): This Is A Buy
- On the 21st Feb 2025, Mayne Pharma (MYX AU), a leader in dermatology and women’s health, entered into a Scheme Implementation Deed with US-based pharmaceutical outfit, Cosette Pharmaceuticals.
- Cosette is offering A$7.40/share, a 37% premium to last close. The Offer has the backing of Mayne’s two largest shareholder, Viburnum and Bruce Mathieson, collectively holding 14.1%.
- Mayne has now revised the Scheme timeline, with completion targeted late June, early July. This is done.
Shibaura Electronics (6957 JP): Minebea Secures Further Irrevocables as It Ponders a Revised Offer
- In response to Yageo Corporation (2327 TT)’s revised JPY5,400 offer, Shibaura Electronics (6957 JP) has asked Minebea Mitsumi (6479 JP) if it intends to revise its terms.
- Minebea is reviewing its offer and has disclosed additional irrevocables from the founder’s family and MUFG. Total irrevocables represent a 15.83% ownership ratio.
- On April 22, Yageo issued a public letter to change the narrative regarding the Board’s concerns. There is an increasing likelihood that Minebea will return with a revised offer.
A Tender Offer of 6.2% Stake in KC Tech by KC Co
- After the market close today, it was reported that KC Co (029460 KS) plans to conduct a tender offer 35 billion won worth of KC Tech (281820 KS) shares.
- KC Co plans to conduct a tender offer of 1.283 million shares (6.2% stake) of KC Tech shares for 20 days from 23 April to 12 May.
- The tender offer price for KC Tech is 27,100 won, which is 13.4% higher than the closing price on 22 April.
Jilin Jiutai Bank (6122 HK): Now Is The Time To Be Delisted
- Jilin Jiutai Rural Comm Bank (6122 HK), a small bank focusing on rural and small business lending, is suspended pursuant to the Takeovers Code.
- Jilin Jiutai was initially suspended on the 12th March. Then on the 31st March, it indefinitely postponed its FY24 results. The share price is down 61% in the past year.
- My guess is that Jilin Province Trust will put Jilin Jiutai out its misery via an Offer by way of a Merger by Absorption. Pricing? Perhaps HK$0.80/share.
Sichuan Baicha Baidao Industrial IPO Lockup – Steep Losses for Pre-IPO Investors
- Sichuan Baicha Baidao Industrial (2555 HK) raised around US$330m in its Hong Kong IPO, in April 2024. The lockup on its pre-IPO investors is set to expire soon
- SBBI sells new-style tea drinks through its ChaPanda stores. According to F&S, SBBI ranked third in China’s new-style tea shop market in 2023, with a market share of 6.8%
- In this note, we will talk about the lockup dynamics and possible placement.
Devyani Intnl.: Yum Brands India Franchisee to Acquire Cloud Kitchen Operator. In Pursuit of Growth
- Devyani International (DEVYANI IN) which operates QSRs such as KFC, Pizza Hut in India plans to acquire Sky Gate Hospitality Pvt. Ltd., the operator of the “Biryani By Kilo”.
- This acquisition can diversify Devyani’s portfolio beyond its core quick‑service restaurant (QSR) franchises—KFC and Pizza Hut—at a time when same‑store sales growth has softened.
- With the rise of off-premise dining and food delivery post pandemic, cloud kitchens are expanding across the board thanks to scalable, asset‑light model, and ability to bypass traditional dine‑in overheads.
Millennium & Copthorne Hotels (MCK NZ): City Dev’s Final and Unconditional NZ$2.80 Offer
- City Developments (CIT SP) increased its Millennium & Copthorne Hotels Nz (MCK NZ) offer to NZ$2.80, a 24.4% premium to its previous NZ$2.25 offer. The Board will respond by 28 April.
- The offer price is final. CDL has received OIO approval and has waived all the remaining conditions. Therefore, the offer is now unconditional.
- While the revised offer remains materially below the IFA valuation and NTA, it is attractive compared to historical trading ranges. The close date for the offer remains 8 May.
Theratechnologies Faces Potential Buyout with 75% Premium Amid Strategic Review and Multiple Bids from Future Pak
- Future Pak’s latest offer for THTX is $3.51/share in cash plus a CVR worth up to $0.99/share.
- THTX’s Egrifta SV has gross margins around 90%, while Trogarzo, a licensed drug, has gross margins at 48%.
- Future Pak’s offer, including the CVR, values THTX at approximately 4x the gross profits from its commercialized treatments.
M & C Hotels (MCK NZ): City Dev Blinks & Bumps
- Back on the 20th January, Millennium & Copthorne (MCK NZ), a Kiwi hotel chain, announced that City Developments (CIT SP), its controlling shareholder, made an Offer for shares not held.
- City Dev offered NZ$2.25/share (not final), a 25% premium to last close. City held 75.86% and the Offer was (initially) conditional on a 90% holding, including shares currently held.
- The independent advisor recommended shareholders NOT accept the Offer, with a fair value range of NZ$4.40-NZ$5.00/share. City Dev has blinked, and bumped terms 24.4% to NZ$2.80/share – best and final.
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