In today’s briefing:
- Taiwan’s Yageo (2327 TT) Announces Hostile Tender on Shibaura Electronics (6957 JP) – I Have 🍿🍿
- Shibaura Electronics (6957 JP): Yageo’s (2327 TT) Hostile Preconditional Tender Offer at JPY4,300
- STAR50/STAR100 Index Rebalance Preview: One Is Meh; The Other Is👍
- Japan CorpGovReports: TSE “Mgmt Conscious of Capital Cost/Stock Price” Details (Feb25), TSE Updates
- Must Asset Mgmt Goes Activist on Young Poong
- Pentamaster (1665 HK): 28th Feb Vote On Parent’s Offer
- Insignia Financial (IFL AU): Three’s A Crowd As Brookfield Joins Bain And CC Capital
- Quiddity Leaderboard SET50 Jun 25: Delta Is Finally Safe; Three Changes Possible
- PT Petrindo Jaya Kreasi (CUAN IJ): Free Float to Determine Global Index Inclusion
- Pentamaster International (1665 HK): Light Offer but Lack of Opposition Ahead of the Vote
Taiwan’s Yageo (2327 TT) Announces Hostile Tender on Shibaura Electronics (6957 JP) – I Have 🍿🍿
- Today, Taiwanese passive components maker Yageo Corporation (2327 TT) announced its Board had approved the launching of a Tender on Shibaura Electronics (6957 JP).
- It turns out YAGEO approached them in October, Shibaura stonewalled for 3mos, required an NDA to meet, and refused to budge. METI Corporate Takeover Guidelines were likely ignored.
- This could set off a flurry of activity including competition, an auction, promises of dividends, and who knows what. It will be exciting but it’s not C&F.
Shibaura Electronics (6957 JP): Yageo’s (2327 TT) Hostile Preconditional Tender Offer at JPY4,300
- Yageo Corporation (2327 TT) announced a hostile preconditional tender offer for Shibaura Electronics (6957 JP) at JPY4,300 per share, a 37.2% premium to the last close.
- The offer is preconditional on regulatory approvals (Japan, Taiwan) and Board recommendation (can be waived). The offer is scheduled to start on 7 May.
- The offer represents an all-time high. The Board has three options: facilitate a friendly offer, find a white knight bidder or launch an ambitious MTM plan to thwart the offer.
STAR50/STAR100 Index Rebalance Preview: One Is Meh; The Other Is👍
- With the review period complete, we forecast 3 changes for the SSE STAR50 (STAR50 INDEX) and 8 changes for the STAR100 Index. There are a few migrations between the indices.
- We estimate turnover of 3.8% for the SSE STAR50 (STAR50 INDEX) and 9.9% for the STAR100 Index. The estimated net round-trip trade is CNY 13bn (US$1.8bn).
- The forecast adds to the STAR50 INDEX have underperformed the forecast deletes. For the STAR100 Index outright changes, the forecast adds have outperformed the forecast deletes by a lot.
Japan CorpGovReports: TSE “Mgmt Conscious of Capital Cost/Stock Price” Details (Feb25), TSE Updates
- TSE-Listed companies are asked to file “Management Conscious of Capital Cost/Stock Price” awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.
- 171 new CGRs were filed since 31-Dec-2024. Our tools show every report, links to every document, and now a new diff file tool. Input a name, see the changes.
- A surprising number of smaller companies have yet to file a MCoCC/SP Awareness report. As cross-holdings get sold down, I expect they will become activists targets in 2025.
Must Asset Mgmt Goes Activist on Young Poong
- Must Asset Management, a 3% shareholder of Young Poong (000670 KS), started to go activist on the company on 5 February.
- Based on current market cap, this would represent a P/B of 0.2x using the consolidated controlling interest equity of 3.9 trillion won!
- There is some speculation that Must Asset Mgmt may form an alliance with Chairman Choi’s family as it proposed to Young Poong to recommend outside directors.
Pentamaster (1665 HK): 28th Feb Vote On Parent’s Offer
- On the 19th December 2024, Pentamaster Corp (PENT MK) announced an Offer, by way of a Scheme, to take out its pseudo dual-listed twin, Pentamaster International (1665 HK).
- The Offer Price is HK$1.00/share – including a HK$0.07/share dividend – a 45.3% premium to last close.
- The Scheme Doc is now out, with a Court Meeting on the 28th February, and expected settlement on the 26th March. The IFA says “fair and reasonable”.
Insignia Financial (IFL AU): Three’s A Crowd As Brookfield Joins Bain And CC Capital
- One exceptionally crowded data room as PE outfit Brookfield Capital joins Bain Capital and CC Capital with a matching A$4.60/share NBIO, via a Scheme, for Insignia Financial (IFL AU).
- Brookfield’s Offer may include a scrip alternative in an unlisted bid vehicle, subject to caps. As with Bain and CC Capital’s Offers, Brookfield’s Offer would ultimately require FIRB signing off.
- And similar to Bain and CC Capital, Brookfield has been afforded a limited period of access to certain non-public information on a non-exclusive basis.
Quiddity Leaderboard SET50 Jun 25: Delta Is Finally Safe; Three Changes Possible
- The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
- In this insight, we take a look at the potential ADDs/DELs for SET 50 during the index rebal event in June 2025.
- Currently, we see three expected changes. However, since the reference period is yet to start, the rankings can fluctuate significantly before the base date.
PT Petrindo Jaya Kreasi (CUAN IJ): Free Float to Determine Global Index Inclusion
- Low free float market cap has kept PT Petrindo Jaya Kreasi Tbk (CUAN IJ) out of a major global index so far.
- An increase in float recently to just above 15% could result in the inclusion of the stock in the index in February and that will trigger large passive buying.
- There is positioning in the stock, and the future stock path will depend on whether it is added to the index or not.
Pentamaster International (1665 HK): Light Offer but Lack of Opposition Ahead of the Vote
- Pentamaster International (1665 HK)’s IFA opines that Pentamaster Corp (PENT MK) and AchiCapital’s HK$1.00 privatisation offer is fair and reasonable. The vote is on 28 February.
- The IFA analysis is biased because it conveniently ignores a relative valuation analysis, which would show that the final offer is unattractive compared to its global peers.
- Disappointingly, there is little minority opposition to an arguably light offer in which the Holdco is privatising its OpCo by arbitraging valuation multiple discrepancies across two exchanges.
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