In today’s briefing:
- Spindex Industries (SPE SP): PrimeMovers Equity-Sponsored MBO at S$1.43
- TOPPAN Holdings – IPO Premium Priced In, Core Execution the Next Test
- Spindex Industries (SPE SP)’s Clean MBO
- Nelcast Ltd – Plant Visit Insights, Small-Cap Rising Star Gearing Up for Explosive Growth
- Fluence Corporation RaaS Interview
Spindex Industries (SPE SP): PrimeMovers Equity-Sponsored MBO at S$1.43
- Spindex Industries (SPE SP) disclosed a privatisation through a scheme of arrangement from the Chairman and PrimeMovers Equity at S$1.43 per share. Including the FY2025 dividend, the total offer is S$1.45.
- While the offer is attractive compared to historical trading ranges, it is light in comparison to peer and precedent transaction multiples. It is also below book value.
- The offer has not been declared final. However, the lack of a disinterested shareholder holding a blocking stake and moderate retail ownership lowers the vote risk.
TOPPAN Holdings – IPO Premium Priced In, Core Execution the Next Test
- IPO catalyst already priced in – Tekscend Photomask IPO (¥300 bn base case) crystallizes hidden value, but with TOPPAN at ~¥3,900, the upside to bull case (~¥4,100) is limited.
- Core execution the swing factor – Information & Communication (~54% sales) and BPO/Digital DX must expand margins (target 10% by FY2030 vs. ~5% today) for further re-rating.
- Balanced risk–reward – Strong balance sheet and shareholder returns (2.5% equity cancelled FY25) support valuation, but high capex and legacy print drag keep FCF and ROE volatile.
Spindex Industries (SPE SP)’s Clean MBO
- Late Friday (26th September), precision parts manufacturer Spindex Industries (SPE SP) announced an Offer, by way of a Scheme, from the Tan Family, Spindex’s controlling shareholder (74.95%).
- The Tan’s are offering S$1.43/share, an okay 27.7% premium to undisturbed, and a decade-high price. The Offer is backed by PE outfit PrimeMovers Equity.
- Clean deal. No competing Offer will emerge. I estimate payment mid-Jan 2026.
Nelcast Ltd – Plant Visit Insights, Small-Cap Rising Star Gearing Up for Explosive Growth
- We visited two manufacturing plants of Nelcast Ltd (NELC IN) located in the southern part of India. In this insight we present the key takeaways from visit.
- Specifically the Pedapariya plant which was facing low capacity utilization is seeing signs of steep ramp up. Insights on this are provided in the note.
- With no significant capex coming up, the ramp of capacity could make Nelcast Ltd (NELC IN)a dark horse in terms of investor returns. We highlight our projections in this note.
Fluence Corporation RaaS Interview
- RaaS Senior Analyst Graeme Carson interviews Fluence Corporation CEO-elect Ben Fash on the company’s business, strategy and outlook.
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