In today’s briefing:
- [Japan M&A] Makino Milling (6135) – MBK as White Knight Appears To Have Made a Binding Bid
- Makino Milling Machine (6135 JP): Relief as a White Knight Bidder Surfaces
- KOSPI200 Index Rebalance: 8 Changes a Side with 2 Surprises
- ALS Placement: Potential Upside Despite Mixed Analyst Views
- Belrise Industries IPO Trading – Robust Insti Demand; Leads Recent Listings
- Voyager Technologies Inc. (VOYG): Peeking at the IPO Prospectus of the Next Space & Defense Company
- InterGlobe Aviation Limited Q4 FY25 Update: Record Quarter Driven by Demand and Strategic Expansion
- Paycloud Holdings (4015 JP): Q2 Follow-Up – May 12, 2025
- Salzer Electronics Limited Q4 FY25 Update: Strategic Shifts, Capacity Expansion on Track
[Japan M&A] Makino Milling (6135) – MBK as White Knight Appears To Have Made a Binding Bid
- In December, Nidec Corp (6594 JP) made an unsolicited bid for Makino Milling Machine Co (6135 JP). Makino wanted more time. Nidec wanted to squeeze. Makino proposed a poison pill.
- Makino appeared to act slowly but white knight bidders were mooted in the media. Nidec launched, but apparently approvals may have been hard. They withdrew. Makino cancelled the poison pill.
- Shares fell sharply. Yesterday, they rose because it appears Effissimo owns 3%. Today, we got news post-close that MBK may be close to making an ¥11,000+ bid.
Makino Milling Machine (6135 JP): Relief as a White Knight Bidder Surfaces
- In response to a Nikkei article, Makino Milling Machine Co (6135 JP) confirmed it had received a legally binding acquisition proposal from MBK Partners.
- The price is expected to exceed Nidec Corp (6594 JP) JPY11,000 hostile offer. On 8 May, Nidec withdrew its offer due to the Board’s proposed countermeasures.
- My analysis suggests that MBK’s white knight bid could be JPY11,677 per share, 13.7% higher than the last close price of JPY10,270.
KOSPI200 Index Rebalance: 8 Changes a Side with 2 Surprises
- There will be 8 additions and 8 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the next rebalance to be implemented at the close on 12 June.
- The inclusion of Korea District Heating (071320 KS) is a surprise and leads to an extra deletion – all the other adds are exactly in line with forecasts.
- The list of adds has been stable for the last few months and the stocks have outperformed the deletes and the KOSPI2 INDEX since the start of the review period.
ALS Placement: Potential Upside Despite Mixed Analyst Views
- ALS Ltd (ALQ AU) is looking to raise up to ~US$253m, with US$227m from a primary placement and remainder, via a non-underwritten share purchase plan (SPP) to raise up to A$40m.
- The deal will be a large one to digest at 17.9 days of the stock’s three month ADV, representing 4.1% of its shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Belrise Industries IPO Trading – Robust Insti Demand; Leads Recent Listings
- Belrise Industries (9156339Z IN) raised about US$252m in its India IPO.
- Belrise Industries is an automotive component manufacturing company based in India offering a diverse range of safety critical systems and other engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial and agri-vehicles.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
Voyager Technologies Inc. (VOYG): Peeking at the IPO Prospectus of the Next Space & Defense Company
- Their company was purpose-built to address issues at the forefront of defense, national security and space industries and they have organized their business to reflect this goal.
- Since 2019, they have grown their revenue to $144.2 million in 2024 and $34.5 million for the three months ended March 31, 2025.
- The company officially filed for its IPO on May 16th and is highly likely to debut in the month of June.
InterGlobe Aviation Limited Q4 FY25 Update: Record Quarter Driven by Demand and Strategic Expansion
- InterGlobe Aviation Ltd (INDIGO IN) reported record quarterly PAT and crossed $10 billion in annual revenue for the first time and recommended a dividend after five years.
- Capacity significantly expanded in FY25 and plans continue, adding aircraft, routes, and widebodies for international growth. On consolidated basis, management guides early double digit growth in FY26.
- Geopolitical events like India-Pak war caused booking dips and flight delays.
Paycloud Holdings (4015 JP): Q2 Follow-Up – May 12, 2025
- H1 Results Overview: On April 14, 2025, Paycloud Holdings Inc. (hereafter, the Company) announced its H1 FY2025/8 results.
- The Company reported net sales of JPY 4,838 mn (+143% YoY), adjusted EBITDA of JPY 679 mn (+200% YoY), and operating profit of JPY 404 mn (+370% YoY).
- While it was substantially attributable to having consolidated Cloudpoint, a digital signage business integrated in March 2024, it was also contributed by its upward momentum of business fundamentals reflecting the fact that the Company’s ongoing cashless service and IT solutions businesses posted nearly 30% operating profit growth with improved margins.
Salzer Electronics Limited Q4 FY25 Update: Strategic Shifts, Capacity Expansion on Track
- Salzer reported strong top-line growth in Q4 and FY25, secured significant smart meter and smart lighting orders, but faced margin pressure and wrote off investments in unviable EV ventures.
- Strong revenue growth was driven by core businesses, but higher smart meter expenses impacted profitability, while new orders and EV investment signal future strategic direction.
- Management is actively navigating challenges, focusing on high-growth areas like smart meters and EV charging, reinforcing a positive medium-term growth outlook despite near-term margin volatility.
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