In today’s briefing:
- Zijin Gold (2259 HK) IPO: HSCI Fast Entry; Quick Stock Connect Add; Global Indices Entry in 2026
- [Japan Event] Sony Financial (8729 JP) Overhang Hangs Over, Company Buys Back, ADR Selldown Awaits?
- [Japan M&A] Mitsubishi Logisnext (7105) – This Deal Looks Mighty Bad
- LG Electronics India IPO: Big Market Cap, Small Float -> Small Passive Flows
- Zijin Mining (2899 HK): Where To From Here?
- [Japan M&A/Activism] Soft99 Plummets, Rebounds, Activist Rebuts, KeePer Lab Holds, MBO Extends
- Potential Additions and Deletions to KOSDAQ150 in December 2025
- I-Net Corp (9600 JP): ORIX Corp (8591 JP)’s Tender Offer at JPY2,530
- Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 4Q 2025
- Acquisition of SK D&D by Hahn & Co + Tender Offer and Delisting Plans
Zijin Gold (2259 HK) IPO: HSCI Fast Entry; Quick Stock Connect Add; Global Indices Entry in 2026
- Zijin Gold (2259 HK) is looking to raise up to HK$28.7bn (US$3.7bn) in its IPO, valuing the company at HK$191.6bn (US$24.6bn).
- Zijin Mining (2899 HK) will hold between 85-86.7% of Zijin Gold and that will limit the free float of the stock. Half the IPO has been allotted to cornerstones.
- Zijin Gold could be added to the HSCI via Fast Entry and to Stock Connect in October. Global index inclusion should take place in the first half of 2026.
[Japan Event] Sony Financial (8729 JP) Overhang Hangs Over, Company Buys Back, ADR Selldown Awaits?
- Sony Financial Group (8729 JP) listed on Monday with a “Reference Price of ¥150. It opened at ¥205, quickly running to ¥210, then fell to ¥198 by lunch. Close? ¥173.8.
- That got a big ToSTNeT-3 buyback at ¥173.8. It traded lower on Day 2, closing at ¥164. Then lower still on Weds with another TN-3 buyback now ¥159.4.
- Neither buyback was full. SFGI has bought back 124mm shares. But the stock has fallen hard. ADRs/ADSs start trading Tuesday. That could see more selling.
[Japan M&A] Mitsubishi Logisnext (7105) – This Deal Looks Mighty Bad
- JIP and MitHeavy have announced a takeunder to buy out MitHeavy sub Mitsubishi Logisnext Co., Ltd. (7105 JP) at a weighted average price 42% lower than Target Advisor DCF range midpoint.
- No/Minimal transparency. A sales process interrupted by Trump tariffs, leaving one low-ball bidder. And the sellers goes ahead with it BUT gets to reinvest on the back end. You don’t.
- The Board “supports” the Tender Offer, but leaves it to the opinion of the shareholders as to whether they tender. MitHeavy has 64.4% already so that basically gets done. But…
LG Electronics India IPO: Big Market Cap, Small Float -> Small Passive Flows
- LG Electronics India (123D IN) is looking to list on the exchanges by selling 101.8m shares at a valuation of US$8.7bn and raising around US$1.3bn in its IPO.
- The new valuation is around 24% lower than the rumoured valuation at the time of the DRHP filing last December.
- The stock will not get Fast Entry to global indices. Inclusion at regular rebalances will commence in June 2026 but flow will be small given the low float.
Zijin Mining (2899 HK): Where To From Here?
- As Zijin Gold (2259 HK)‘s share price defies gravity, so does Zijin Mining Group Co Ltd H (2899 HK)‘s.
- Full disclosure: I misread the room. I thought Zijin Gold was fully priced at HK$71.59/share. As was Zijin Mining. Zijin Gold is now up 92% and Zijin Mining 20%.
- Zijin Gold currently trades at a 100% premium to peers on forward PER and EV/EBITDA multiples.
[Japan M&A/Activism] Soft99 Plummets, Rebounds, Activist Rebuts, KeePer Lab Holds, MBO Extends
- On 25 September, with the stock trading just below Effissimo’s terms, the Soft99 Corp (4464 JP) Board came out AGAINST the Effissimo proposal 66% higher than the MBO terms.
- The fine print said that the Soft99 deal had enough shares to get over the line assuming Keeper Labs tendered according to agreement due to Board Support. Shares plummeted.
- Effissimo issued a stunning rebuttal which showed Board incompetence/negligence, possible breach of fiduciary duty. Today, MBO Bidco extended, the stock popped, but details are key.
Potential Additions and Deletions to KOSDAQ150 in December 2025
- In this insight, we provide an early look at the potential additions and deletions to KOSDAQ150 rebalance in December 2025.
- The 7 potential additions are up on average 164% YTD. The 8 potential deletion candidates are down on average 25.1% YTD. KOSDAQ is up 26% YTD.
- The average market cap of the 7 potential additions is 1,515 billion won. The average market cap of the 8 potential deletion candidates is 275 billion won.
I-Net Corp (9600 JP): ORIX Corp (8591 JP)’s Tender Offer at JPY2,530
- I Net Corp (9600 JP) has recommended a tender offer from Orix Corp (8591 JP) at JPY2,530, a 53.4% premium to the last close.
- The offer is attractive as it is above the midpoint of the target IFA DCF valuation range and represents an all-time high.
- Despite the high required minority tendering rate, an attractive offer facilitates completion. The tender runs from 3 October to 17 November.
Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 4Q 2025
- In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 4Q 2025.
- The preferred companies’ share price discount (relative to the common shares) on the 27 pairs below was 36% at the end of September 2025.
- On a longer timeframe (3-5 years), this discount could narrow further to the 20-25% range, which provides additional opportunities for the Korean preferred shares to further make relative gains.
Acquisition of SK D&D by Hahn & Co + Tender Offer and Delisting Plans
- On 1 October, it was reported in the local media that Hahn & Co (is acquiring the management rights of SK D&D Co Ltd (210980 KS).
- This tender offer is not likely to be successful. Less than 1/3 of the 6.96 million shares that are up for tender offer could be sold by the existing shareholders.
- We believe that the majority of the remaining investors in SK D&D want higher tender offer price.
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