In today’s briefing:
- Zijin Mining (2899 HK): Fully Valued Ahead Of (Expected) Gold Unit Spin-Off
- [Japan M&A] CareNet (2150 JP) MBO-Ish LBO of Medical Platform Biz; Light. SUPER Opaque Process.
- [Japan M&A] YAGEO Says It Expects FDI Clearance on Shibaura – Minebea Likely To Fold
- A Merger Between HD Hyundai Heavy Industries and HD Hyundai Mipo
- [Japan M&A] CareNet (2150 JP) – Opaque LBO/MBO Garners New Attention from Existing Shareholder
- PointsBet (PBH AU): Betr’s Dyslexic Bump. Mixi’s Now Holding 42.38%
- CareNet (2150 JP): Kaname Capital Is Potentially a Headache for EQT
- What Was It in SK Inc that Got the Local Pension Funds Loading up Hard Today?
- Robotis – Rights Offering of 100 Billion Won
- Xtalpi Placement: Opportunistic Raise but Thematically Hot, past Deals Did Well
Zijin Mining (2899 HK): Fully Valued Ahead Of (Expected) Gold Unit Spin-Off
- Back on the 30th April 2025, Zijin Mining (2899 HK) said it planned to spin off its overseas gold mine assets on the Hong Kong exchange.
- The newly created unit, Zijin Gold International, owns/operates mines in South America, Central Asia, Africa and Oceania, including the Buritica project in Colombia, the nation’s largest gold mine.
- A Circular is now out concerning the spin-off, which is not subject to shareholder approval. Pegged to peers, Zijin appears fully valued.
[Japan M&A] CareNet (2150 JP) MBO-Ish LBO of Medical Platform Biz; Light. SUPER Opaque Process.
- Todfay after the close, EQT and Carenet Inc (2150 JP) announced an EQT SPC would launch a TOB to buy out the medical platform business.
- A growthy business so the multiple looks light. But the founder and his incubation fund is selling. That’s 19%. Insiders/crossholders hold another 25%. One recent seller still has 10%.
- This looks like it gets done, but it isn’t at the highs of 4+ years ago. Some retail may be upset.
[Japan M&A] YAGEO Says It Expects FDI Clearance on Shibaura – Minebea Likely To Fold
- Last weekend then post-close Monday, Yageo Corporation (2327 TT) raised its TOB Price for Shibaura Electronics (6957 JP) to ¥7,130 – a full 15% through Minebea’s proposed ¥6,200/share terms.
- Minebea was playing chicken with the result, closing its tender on 28 August, before Japan’s Foreign Direct Investment approval (FEFTA approval) was cleared, expected 1 Sep or later.
- Today post-close, YAGEO announced it had concluded discussions with METI, would make all required regulatory submissions today, and expects to obtain approval “no later than 10 September”
A Merger Between HD Hyundai Heavy Industries and HD Hyundai Mipo
- It was announced today that HD Hyundai Heavy Industries will merge with HD Hyundai Mipo. The merger ratio between HD Hyundai Heavy Industries and HD Hyundai Mipo is 1:0.4059146.
- HD Korea Shipbuilding & Offshore Engineering (009540 KS) will own a 66.29% stake in the merged entity.
- HD KSOE is proceeding with this merger of its two major subsidiaries ahead of the full-scale launch of the MASGA (“Make America Shipbuilding Great Again”) project.
[Japan M&A] CareNet (2150 JP) – Opaque LBO/MBO Garners New Attention from Existing Shareholder
- When EQT launched its deal for Carenet Inc (2150 JP) two weeks ago, I thought it opaque, and light, and strangely lacking in information which should be there.
- It has not gotten clearer, though three days ago, the largest foreign shareholder as of the announcement reported they had lowered their position by 3.77% (4.22% of votes).
- Then yesterday, someone else reported they had gone above 5%. The data implied in that filing suggests this may have legs. I’d buy through terms.
PointsBet (PBH AU): Betr’s Dyslexic Bump. Mixi’s Now Holding 42.38%
- Betr Entertainment (BBT AU) has bumped scrip terms to 4.375 betr shares per PointsBet Holdings (PBH AU) share, equivalent to A$1.31/share, based on betr’s last traded price.
- True to form with betr, there’s a typo in its latest announcement stating a 4.735 ratio. betr just issued a Bidder’s Statement with the correct info.
- Apologies: in my last note I mentioned Mixi Inc (2121 JP) had bumped to A$1.30/share. However, that was predicated on Mixi securing 90%, which won’t happen if betr doesn’t tender.
CareNet (2150 JP): Kaname Capital Is Potentially a Headache for EQT
- Kaname Capital reported a 5.80% ownership ratio in Carenet Inc (2150 JP). Most of the shares were purchased on August 18 and 19, i.e., after the announcement of the offer.
- Kaname has a recent history of agitating for a bump in the Proto Corp (4298 JP) tender offer. Kaname failed to prevent Proto from being privatised.
- EQT will initially take a wait-and-see approach. If Kaname acquires a 10% stake, EQT will start to worry, but it has several options to respond.
What Was It in SK Inc that Got the Local Pension Funds Loading up Hard Today?
- LG plans to cancel its remaining 3.02M treasury shares by next year, effectively wiping out all treasury stock—a clear preemptive move ahead of mandatory cancellation rules.
- Local pension funds are betting SK Inc will do a partial treasury burn before Q4, front-running the 3rd Commercial Act and sending a pro-policy signal.
- The SK treasury burn story offers multiple plays: holdco rerate, SK Inc momentum, and subsidiary rollover as NAV discounts tighten—definitely a multi-layered setup worth active monitoring.
Robotis – Rights Offering of 100 Billion Won
- On 28 August, Robotis (108490 KS) announced a rights offering capital increase of 100 billion won.
- Rights offering plan is to allocate 1,349,528 new shares (10% of outstanding shares) to existing shareholders, and then conduct a public offering for general investors once forfeited shares are issued.
- The expected rights offering price is 74,100 won per share (12.8% lower than current price). We are Negative on this rights offering.
Xtalpi Placement: Opportunistic Raise but Thematically Hot, past Deals Did Well
- XtalPi Holdings (2228 HK) is looking to raise up to US$300m in a primary placement.
- The deal is a small one in ADV terms, at 1.6 days, despite leading to a 5.7% increase in shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
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