In today’s briefing:
- Taisho Pharma (4581 JP) – Japan’s Newest Biggest MBO; The Price Is Light!
- Taisho Pharmaceutical (4581 JP): MBO Tender Offer at JPY8,620
- 2024 High Conviction – New Horizon Health – Overhangs Are Over, Upgraded ’23 Guidance
Taisho Pharma (4581 JP) – Japan’s Newest Biggest MBO; The Price Is Light!
- Just past the 22-year anniversary of the deal-break from a previous takeover involving the large OTC drug firm, Taisho Pharmaceutical Holdin (4581 JP) announced an MBO Takeover for the company.
- Set at a 55.5% premium, it is not particularly surprising as a deal. The family is rolling in their interests. It looks like estate planning. The Board supports and recommends.
- Unfortunately, like many recent MBOs, this one is light at 0.85 book where net cash, securities, and net receivables and inventory make up 68% of the takeover price.
Taisho Pharmaceutical (4581 JP): MBO Tender Offer at JPY8,620
- Taisho Pharmaceutical Holdin (4581 JP) has recommended an MBO tender offer of JPY8,620 per share, a 55.5% premium to the undisturbed (24 November).
- The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 66.67% ownership ratio.
- Irrevocables represent a 40.31% ownership ratio. The minimum acceptance condition requires a 44% minority acceptance rate. The offer is attractive vs. historical and peer multiples.
2024 High Conviction – New Horizon Health – Overhangs Are Over, Upgraded ’23 Guidance
- New Horizon reported a strong 1H2023 results. Company has upgraded its ’23 sales guidance.
- The company will continue to deliver strong sales growth despite recent anti-corruption movement in China.
- We believe that the evidence presented by the recent short-selling report is not sound. We believe the impact is over.
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