In today’s briefing:
- [Japan Activism/M&A] Taiyo Holdings (4626) Now an MBO Target? KKR and One More Bidding
- Taiyo Holdings (4626 JP): Privatisation Interest as Oasis Agitates
- Metaplanet (3350) | The Bitcoin Yield Illusion
- Not the Timing of Annual Securities Report Disclosure, but Rather Company Management Objectives
[Japan Activism/M&A] Taiyo Holdings (4626) Now an MBO Target? KKR and One More Bidding
- Taiyo Holdings (4626 JP) has an interesting background, embroiled in a separate activist event via its equity affiliate sponsor Dic Corp (4631 JP), and recently an activist target itself.
- Today a Bloomberg article said KKR and one other PE fund had made acquisition proposals via TOB. Taiyo confirmed, establishing a Special Committee. A deal is months away, at earliest.
- Shares shot up to limit up, opened briefly, then resumed at limit up. The question here and now is valuation.
Taiyo Holdings (4626 JP): Privatisation Interest as Oasis Agitates
- Taiyo Holdings (4626 JP) shares were up 19.1% based on a Bloomberg report that it received privatisation proposals from KKR and Nippon Sangyo Suishin Kiko.
- Taiyo confirmed that it has received privatisation offers. The Board would view privatisation as a solution to rid itself of Oasis, which has recently waged an activist campaign.
- At the last close price of JPY6,230, Oasis would be up 45.9% on its highest price of JPY4,720. My analysis suggests that an offer around JPY7,000 can be justified.
Metaplanet (3350) | The Bitcoin Yield Illusion
- Metaplanet, the Tokyo-listed firm modelling itself after MicroStrategy, continues to rapidly expand its Bitcoin holdings.
- For now, equity markets are playing along. Metaplanet’s share price has surged 30% in the past week
- But with the firm trading at nearly 6x its net asset value, market enthusiasm looks stretched
Not the Timing of Annual Securities Report Disclosure, but Rather Company Management Objectives
- For dialogue with shareholders, annual securities reports should be disclosed in English for overseas investors, who are eager to request the pre-AGM submission and have high demand for this information.
- To change a company to a mindset of dialogue with shareholders rather than controlling AGM, it needs to have a successful experience in converting management to create value through dialogue.
- It’ll be interesting to see if the traditional values of companies, which has been accustomed to management that does not face shareholders, can be changed in the coming years.
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