In today’s briefing:
- Mitsubishi Logisnext (7105 JP): JIP’s Takeunder Offer
- Tekscend Photomask (429A JP) IPO: TPX Add in Nov; Global Index: One in Feb; One in June
- Doosan Robotics – End of Lockup Period For 34% of Outstanding Shares
- StubWorld: Melco (200 HK) Looking Toppish. Again.
- Fiduciary Duty Expansion in Korea Fuels Class A Prefs Relative Value Trade
- Tata Capital IPO: Big Listing, Big Valuation, Small Float
- Seven West Media (SWM AU) Enters Scheme With Southern Cross (SXL AU). But Not Everyone Is Happy
- Ørsted: Rights Trading Update | Parity Tightening, Fade the Listing Flush
- Dupont Spin-off (Qnity) Deep Dive
- Earnings Kickoff Dominates October 2025 Key Events
Mitsubishi Logisnext (7105 JP): JIP’s Takeunder Offer
- Mitsubishi Logisnext Co., Ltd. (7105 JP) announced a pre-conditional tender offer from Japan Industrial Partners (JIP) at JPY1,537 per share, representing a 15.3% discount to the last close price.
- The offer resulted from an auction process. The offer is light in comparison to peer multiples and is below the midpoint of the target IFA DCF valuation.
- While Mitsubishi Heavy Industries (7011 JP) irrevocable has a competing proposal clause, it is unlikely that a bidding war will transpire. The low required tendering rate suggests a done deal.
Tekscend Photomask (429A JP) IPO: TPX Add in Nov; Global Index: One in Feb; One in June
- Tekscend Photomask (429A JP)‘s listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 16 October.
- At the top end of the IPO range at JPY 3000/share, Tekscend Photomask (429A JP) will be valued at JPY 298bn (US$2bn).
- The stock should be added to the TOPIX INDEX at the close on 27 November while inclusion in global indices should take place in February and June.
Doosan Robotics – End of Lockup Period For 34% of Outstanding Shares
- There is an end of a lock-up period for 22.1 million shares (34% of outstanding shares) for Doosan Robotics (454910 KS) starting 5 October 2025.
- This could potentially result in additional selling by insiders which could negatively impact its share price in the coming weeks.
- Doosan Robotics’ valuation multiples remain extremely high. We remain BEARISH on Doosan Robotics.
StubWorld: Melco (200 HK) Looking Toppish. Again.
- Melco International Development (200 HK) is now trading at a premium to NAV for the first time since announcing a one-for-two rights issue.
- Preceding my comments on Melco 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%.
Fiduciary Duty Expansion in Korea Fuels Class A Prefs Relative Value Trade
- Fiduciary duty expansion gains teeth once the third-stage treasury cancellation passes—setting up Class A prefs as prime re-rating, discount-compression plays in local flows.
- Fiduciary duty expansion gives Class A prefs new legal backing, making them standout re-rating plays with discount-compression potential, unlike Class B with built-in dividend protections.
- Hyundai Motor 1P vs 2PB offers a tight but tradable setup, while CJ Corp and AmoreH show wider A/B gaps, even after adjusting convertible premiums.
Tata Capital IPO: Big Listing, Big Valuation, Small Float
- Tata Capital Limited (TATACAP IN) is looking to list on the exchanges by selling up to INR155bn (US$1.75bn) of stock at a valuation of around INR 1,384bn (US$15.6bn).
- The stock will not get Fast Entry to either of the global indices. The earliest inclusion in a global index should take place in June 2026.
- The stock should be added to the Large Cap segment in the AMFI Classification in January and to the Nifty Next 50 Index in March.
Seven West Media (SWM AU) Enters Scheme With Southern Cross (SXL AU). But Not Everyone Is Happy
- Television broadcaster and publisher Seven West Media (SWM AU) has entered into a Scheme with radio network play Southern Cross Media (SXL AU).
- SXL will issue 0.1552 new shares for every SWM. Should the Scheme get up, SXL will hold 50.1% of the combined entity and SWM the remainder.
- Kerry Stokes backed SGH Limited (SGH AU) will hold ~20% in the merged entity. But not all shareholders are on board with the Offer. Trading through terms.
Ørsted: Rights Trading Update | Parity Tightening, Fade the Listing Flush
- Since 17 Sep ex-rights, shares rose 9.7% and rights 30.1%; rights discounted to parity on 7/9 sessions (avg −1.8%). Turnover ~DKK 4.94bn total, signalling orderly borrow and stabilising syndicate flows.
- Into 10–14 Oct listing, base case is a supply pulse toward TERP-adjacent levels, then digestion. Near-term path: 106–114 first prints, tests 103–106 on wobble, rebuilds 112–118 as supply clears gradually.
- Trade: buy the listing flush. Start 103–106, add 108–110 reclaim; target 114–118; tight risk below 101. Engage arb only at 1–2% rights discounts. Watch sustained >+1% premium for borrow tightening.
Dupont Spin-off (Qnity) Deep Dive
- DuPont (DD) is set to spin off 100% of its Electronics business, Qnity (Q), in early November.
- Qnity is positioned to grow in line with the semiconductor industry, which is expected to expand at a mid-single-digit CAGR.
- A large portion of its portfolio consists of consumable products, supporting strong profitability with EBITDA margins around 30% (inclusive of ~$100 million in public company costs).
Earnings Kickoff Dominates October 2025 Key Events
- Exchange holidays: Early October holidays in China (Golden Week) and South Korea (Chuseok) may dampen market activity, while India’s Diwali on 21–22 October brings the traditional Muhurat trading session.
- Earnings season begins in the final third of October across India, Japan, China/Hong Kong, and South Korea, alongside key central bank meetings and the TOPIX rebalance on 30 October.
- Why Read: Plan ahead and take into account known market events when making investment and trading decision.
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