In today’s briefing:
- Tsuruha (3391) – Welcia (3141) Future Merger Ratio – Pounding the Table
- Converting Samsung Life’s Samsung Electronics Stake to Long-Term Holdings: Clearing up the Confusion
- Monte Dei Paschi Di Siena’s €13.3 Billion Bid for Mediobanca: First Take
Tsuruha (3391) – Welcia (3141) Future Merger Ratio – Pounding the Table
- In late December, a Jiji article said Tsuruha & Welcia would look to integrate by end-2025, now that they no longer need SEC approval. Odd language, but we’ll take it.
- That means we look to what might happen between here and there. The companies will hire Legal and Financial Advisors, wait until both report FY, then start negotiating.
- What has been the long-term trend and the trend of the last two years is different. It’s worthwhile looking at valuations and expectations to decide how to trade. It’s good.
Converting Samsung Life’s Samsung Electronics Stake to Long-Term Holdings: Clearing up the Confusion
- Samsung Life needs FSC approval for a 10-year holding plan on its Samsung Electronics stake. Without it, the whole plan could fall apart, so it’s all about regulatory green lights.
- If FSC approves Samsung Life’s long-term holding, they can’t sell those shares for at least 5 years—no exit strategy for the next half-decade due to regulatory rules.
- Samsung Life will convert part of its stake into long-term holdings, signaling how future buybacks and special dividends will balance in Samsung Electronics’ next shareholder return program.
Monte Dei Paschi Di Siena’s €13.3 Billion Bid for Mediobanca: First Take
- Proposed Deal Details: BMPS launched a €13.3B all-share offer for Mediobanca, offering a 5% premium per share. Post-merger, BMPS shareholders would own 40% of the combined entity.
- Strategic Rationale: The merger aims to create a diversified financial powerhouse, achieving €700M in annual synergies and accelerating BMPS’s €2.9B deferred tax asset utilization for shareholder value creation.
- Challenges and Risks: Insufficient premium, integration complexities, and shareholder dilution concerns cast doubt on deal success, alongside Mediobanca’s superior growth prospects and market positioning.
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