In today’s briefing:
- Hitachi Transport (9086) – Delay Doesn’t Mean Ditched
- TOPIX Inclusions: Who Is Ready (Oct 2022)
- MBK Partners Joins JIC Consortium to Acquire Toshiba
- Yamada Holdings: Time to Lock In Profits
- Itochu Advance Logistics (3493 JP): Offering Could Trigger Outperformance Vs Peers
Hitachi Transport (9086) – Delay Doesn’t Mean Ditched
- The KKR consortium which was to buy Hitachi Transport System (9086 JP) has encountered a delay. What was to start in September is now scheduled for November.
- On the 29th, HTS released a document saying KKR still had a couple of approvals or lapses of waiting periods needed.
- The HTS announcement suggested the start of the Tender Offer would be early November rather than end-September.
TOPIX Inclusions: Who Is Ready (Oct 2022)
- Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
- This insight is a follow-up to TOPIX Inclusions: Who Is Ready (Aug 2022)
- At present, there are 53 names that satisfy all of these conditions and there are more names that are close to being in that group.
MBK Partners Joins JIC Consortium to Acquire Toshiba
- It was announced today that MBK Partners will join a consortium led by Japan Investment Corporation (JIC) to acquire Toshiba Corp (6502 JP).
- The sharp appreciation of the USD vs JPY could make a stronger case for JIC consortium (now backed by both Bain Capital and MBK Partners) to become the main bidder.
- Including the premium for management rights, the acquisition price of Toshiba is expected to reach about 3 trillion JPY (US$21 billion).
Yamada Holdings: Time to Lock In Profits
- We were lucky with our call on Yamada Denki (9831 JP) earlier this year as the stock outperformed Topix by around 30% in the first 9 months of 2022.
- We were expecting to make more than 70%, but revenues have fallen short of our expectations.
- With demand falling more than expected after a short boost during COVID through telework and online classes, we would look to cash in the gains before the 2QFY23 earnings release.
Itochu Advance Logistics (3493 JP): Offering Could Trigger Outperformance Vs Peers
- Today after the close, small-cap logistics JREIT Itochu Advance Logistics Investment (3493 JP) (“IAL”) announced a follow-on equity offering to fund part of their recently-announced property acquisition.
- The primary offer quantity is 70,773 units. In addition, there will also be an over-allotment quantity of 3,500 units. The total size of this offering could be roughly ¥10bn (~US$76mn).
- Below is a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
