In today’s briefing:
- MBK Partners Plans to Launch a Tender Offer for Makino Milling Machine
- Tam Jai (2217 HK): Anxiety Creeps in Ahead of the Scheme Document
- Accounting for Soul Patts/Brickworks’ Feedback Loop
- Tam Jai (2217 HK): Toridoll (3397 JP)’s Excellent Offer. Still.
- Mayne Pharma Faces Legal Challenges as Cosette Attempts to Terminate Acquisition Over Material Adverse Clause Claims
- Ola Electric: Hyundai Exits Amid Slowing Sales, Delayed Cells and Fundraising Plans.
- Cross-Border Capital: BAMI, Brussels, and the Battle for Banking Integration
MBK Partners Plans to Launch a Tender Offer for Makino Milling Machine
- MBK Partners plans to launch a tender offer for Makino Milling Machine (6135 JP) at 11,751 yen per share by early December to take over the controlling ownership.
- The key long-term investment case for Makino is that it is one of the best companies in the world for making advanced machine tools that are increasingly becoming more sophisticated.
- One could make the argument that this may not the final offer and some investors may require slightly higher prices in order to make the deal final.
Tam Jai (2217 HK): Anxiety Creeps in Ahead of the Scheme Document
- The spread to TORIDOLL Holdings Corporation (3397 JP)’s HK$1.58 offer for Tam Jai International (2217 HK) has risen to 9.7% ahead of the scheme document’s release.
- Several readers have asked whether the Tam Jai offer will mirror the Goldlion and Soundwill deal break. The schemes share similarities but are also different in several ways.
- The scheme’s vote risk has undoubtedly increased partly due to the recent 2025 results and deal breaks. This situation warrants a safety-first approach.
Accounting for Soul Patts/Brickworks’ Feedback Loop
- On the 2 June, Washington H. Soul Pattinson and Co. Ltd (SOL AU) (Soul Patts) and Brickworks Ltd (BKW AU), announced that, via inter-conditional Schemes, they would collapse their circularity.
- A new ASX-listed company (TopCo) would acquire all of the shares in Soul Patts and Brickworks, via the issuance of TopCo shares; 1:1 for Sout Patts, and 0.82:1 for Brickworks.
- Given the cross-holding, an interesting exercise is understanding the underlying values for both Soul Patts and Brickworks.
Tam Jai (2217 HK): Toridoll (3397 JP)’s Excellent Offer. Still.
- On the 17th Feb, a specialty restaurant-operator Tam Jai (2217 HK) announced an Offer, by way of a Scheme, from TORIDOLL (3397 JP) at HK$1.58/share, a 75.56% premium to undisturbed.
- This should get up; but really, given the recent Soundwill Holdings (878 HK) and Goldlion Holdings (533 HK) failures, small, illiquid arbs are not the preferred haven for arb investors.
- The Scheme Doc is now out, with a Court Meeting on the 30th June, and payment on or before the 26 August. The IFA (Lego Corporate) says “fair & reasonable“.
Mayne Pharma Faces Legal Challenges as Cosette Attempts to Terminate Acquisition Over Material Adverse Clause Claims
- Mayne Pharma’s acquisition by Cosette Pharmaceuticals faces challenges due to claims of material adverse changes, including financial performance and litigation issues.
- Australian activist fund Harvest Lane Asset Management is building a position in MYX, arguing Cosette lacks grounds to terminate the deal.
- Recent developments include FDA issue resolution, countersuit against TherapeuticsMD, and potential for a modest price cut agreement.
Ola Electric: Hyundai Exits Amid Slowing Sales, Delayed Cells and Fundraising Plans.
- Hyundai Motor (005380 KS) and Kia Corp (000270 KS) have exited their investment in Ola Electric through a combined stake sale worth USD80 million, at a discount to market prices.
- The exit marks the end of their 2019 investment in the then-unlisted 2W EV startup and highlights rising investor concerns over Ola Electric’s growth trajectory and operational challenges.
- Ola Electric had listed less than a year ago with bullish growth projections, but the stock is down 34% from the issue price and 63% from post-IPO high prices.
Cross-Border Capital: BAMI, Brussels, and the Battle for Banking Integration
- BAMI’s standalone upside remains compelling, trading at a discount to peers with solid capital ratios and structural re-rating catalysts, including asset management and insurance earnings now contributing more meaningfully.
- The deal’s outcome hinges on golden power clearance and potential EU legal action; UniCredit’s resolve and Brussels’ support add optionality, despite headline and regulatory risk remaining high.
- I see asymmetric outcomes favoring long BAMI positions or selective pair trades; timing risk is real, but downside is cushioned by valuation and sector consolidation dynamics.
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