In today’s briefing:
- Last Week in Event SPACE: Seven & I, PA Gooddoctor, Fuji Soft, WH Group
- Opportunity Within Europe and Japan; EURO STOXX 50 and TOPIX/Nikkei 225 Near Major Breakouts
- Open House Finally Takes Out Pressance (3254) – Done Deal Done Cheap
- Pressance (3254 JP): Open House (3288 JP) JPY2,390 Tender Offer a Done Deal
- (Mostly) Asia-Pac M&A: Insignia Financial, Arcadium, CPMC, GAPack, Haitong Sec., Shinko Electric
- Allegro MicroSystems: Can Its Localization In China Enhance Their Competitive Edge In The Region? – Major Drivers
Last Week in Event SPACE: Seven & I, PA Gooddoctor, Fuji Soft, WH Group
- Seven & I Holdings (3382 JP)‘s analysts’ call transcript is worth listening to. The math on the takeover maths well. This is a buy on dip. Again.
- Those who bought into Ping An Healthcare and Technology (1833 HK)‘s punchy dividend, whether in cash or scrip, the trade has panned out well.
- KKR extends its Offer for Fuji Soft Inc (9749 JP). Separately, Bain said it had destroyed confidential data, as requested, but it’s unclear how and when that data was destroyed.
Opportunity Within Europe and Japan; EURO STOXX 50 and TOPIX/Nikkei 225 Near Major Breakouts
- Our bullish outlook on global equities (MSCI ACWI) remains intact. Actionable Themes today include Financials, Energy, and Consumer Discretionary (European Luxury Retailers)
- We view this pullback as a buying opportunity and we are watching for $116-$117 support to hold on ACWI-US; this is an important resistance-turned-support level dating back to July 2024.
- Europe and Japan are on the cusp of major breakouts above critical resistance levels of 5000-5120 on the EURO STOXX 50 and 2740-2820 on the TOPIX
Open House Finally Takes Out Pressance (3254) – Done Deal Done Cheap
- Four-Plus years ago, Open House (3288 JP) bought the stake in Pressance Corp (3254 JP) owned by its embattled CEO (who had been arrested for a scandal).
- Four years ago, Open House launched a partial tender and capital injection to go to ~65%. A takeout was a matter of time.
- That time has come. Today Open House announced a Tender Offer to take Pressance fully-private. This is an easy deal. A done deal. Done too cheap.
Pressance (3254 JP): Open House (3288 JP) JPY2,390 Tender Offer a Done Deal
- Pressance Corp (3254 JP) announced a tender offer from Open House (3288 JP) at JPY2,390 per share, a 22.1% premium to the last close.
- While the offer is below book value, it represents an all-time high and broadly aligns with the mid-point of the target IFA’s DCF valuation range.
- The low minimum acceptance condition (2.3 million or 3.25% ownership ratio) suggests a done deal. The offer runs from 14 January to 26 February (30 business days).
(Mostly) Asia-Pac M&A: Insignia Financial, Arcadium, CPMC, GAPack, Haitong Sec., Shinko Electric
- I tally 51 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- One new deal was discussed this week: CC Capital’s NBIO for Insignia Financial (IFL AU).
- Key updates/news took place on: Arcadium Lithium (LTM AU), CPMC Holdings (906 HK), Greatview Aseptic Packaging (468 HK), Haitong Securities (H) (6837 HK), and Shinko Electric Industries (6967 JP).
Allegro MicroSystems: Can Its Localization In China Enhance Their Competitive Edge In The Region? – Major Drivers
- Allegro MicroSystems reported its second-quarter fiscal 2025 earnings, showcasing a blend of resilience and challenges within a fluctuating market environment.
- The company’s revenue for the quarter was $187 million, reflecting sequential growth in both automotive and industrial sectors.
- However, year-over-year comparisons showed a 32% decline in sales, highlighting significant market challenges.
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