This weekly newsletter pulls together summaries of the top ten most-read Insights across Event-Driven and Index Rebalance on Smartkarma.
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1. [Japan M&A] Denso (6902) Reportedly Made a ¥1.3trln Takeover Proposal to Rohm (6963). Light & Iffy.
- The Nikkei reported mid-day that Denso Corp (6902 JP) made a ¥1.3trln takeover proposal to ROHM Co Ltd (6963 JP) in February. That’s big news. Last year Denso bought ~5%.
- The goal would be to be dominant in power chips and to serve Toyota Group. There is a big Toshiba angle here too. Rohm bought into Toshiba, also has JVs.
- Toshiba owns a big stake in Kioxia which trickles down to Rohm. Much will be made of the look-through valuation. It’s complicated.
2. Denso (6902 JP)’s Offer for Rohm (6963 JP): Bump Likely & Potential Nikkei225 Replacement
- Around noon on Friday, Nikkei reported that Denso Corp (6902 JP) was looking to acquire ROHM Co Ltd (6963 JP) for up to JPY 1.3 trillion (US$8.24bn).
- ROHM Co Ltd (6963 JP) jumped and Denso Corp (6902 JP) dumped on the news. Interestingly, Kokusai Electric (6525 JP) also jumped on the news of the potential acquisition.
- Kokusai Electric (6525 JP) is by far the highest ranked stock from the Technology sector and is a high probability replacement for ROHM (6963 JP) in the Nikkei 225 Index.
3. [Japan M&A] Now Rohm (6963) And Toshiba Mulling Power Semis Integration, Thwarting Denso?
- As discussed in [Japan M&A] Denso (6902) Reportedly Made a ¥1.3trln Takeover Proposal to Rohm (6963). Light & Iffy., the question is not Denso’s desire but Rohm’s willingness.
- Denso may have a problem paying the right price to get Rohm, but Rohm may simply not wnat to be got. And I discussed the Toshiba angle.
- Today the Nikkei reveals that Rohm and Toshiba are considering integrating their power semiconductor businesses. This is NOT a surprise. But it may feel like it.
4. Samsung Electronics: Cancellation of 16 Trillion Won Worth of Treasury Shares
- Samsung Electronics announced that it plans to cancel approximately 87 million of its 105.43 million treasury shares held as of the end of 2025 within the first half of 2026.
- This represents 82.5% of treasury shares and 1.5% of its outstanding shares. Based on the closing price of Samsung Electronics on 10 March, this represents nearly 16 trillion won.
- This should have a positive impact on Samsung Electronics’ share price, albeit the overall positive impact should be less than that of SK Inc.
5. Samsung’s Pref-Skewed Burn in Latest Filing & Impact on Discount Dynamics
- Even after accounting for commons reserved for stock comp, the burn skews toward prefs, with the preferred line seeing ~10% more shrink, keeping this round clearly pref-skewed.
- This isn’t 2015-level pref skew, but the setup today echoes 2015, as Samsung may tilt toward pref buybacks to hit the 50% FCF payout target.
- Pref skew is small vs 2015, but Samsung burning more prefs hints at capital-return bias; with the pref discount pivoting, this could sustain compression post-AGM.
6. SK Inc: Cancellation of 20.3% of Outstanding Shares
- SK Inc (034730 KS) announced that it will cancel about 4.8 trillion won ($3.3 billion) worth of treasury shares, representing about 20.3% of its outstanding shares.
- This should have a big positive impact on SK Inc’s share price. The treasury shares cancellation date is scheduled for 4 January 2027.
- Our updated NAV valuation suggests target NAV per share of 662,130 won, which is 82% higher than current price.
7. IJM (IJM MK): 26th March Sunway Vote. Independent Advice Still Pending
- On the 12th January 2026, Sunway Bhd (SWB MK) tabled a voluntary RM3.15 cash/scrip Offer for Ijm Corp Bhd (IJM MK), a so-so 14.55% premium to undisturbed.
- On the 20th January, IJM confirmed it had met with Malaysia’s anti-graft body. Sunway is still proceeding with the Offer. The Offer Doc is out. And now is the Circular.
- This Circular is largely a nothing burger. If Jeffrey Cheah (60.5% holder in Sunway) says yes, the transaction proceeds. The key Independent Advice Circular is due before the 16th March.
8. How the Iran War Triggered Asia’s Fastest Fund Outflows in Years
- Global funds have pulled a net $11 billion from developing Asia ex-China in a single week, the largest outflow since March 2022.
- Asia’s structural dependence on Middle East oil through Strait of Hormuz makes the region disproportionately exposed to energy shock that US, now a net oil exporter, is largely insulated from.
- Now, “Sell America, Buy Asia” macro trade may be facing a structural pause, not a cyclical dip.
9. Merger Arb Mondays (09 Mar) – ENN, Dongfeng, Skyworth, Qoria, Bluescope, Toyota Ind, Sankei
- I summarise the latest spreads and newsflow for the merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
- Highest spreads: Qoria (QOR AU), Skyworth Group Limited (751 HK), Ijm Corp Bhd (IJM MK), Bluescope Steel (BSL AU), ENN Energy (2688 HK), Pepper Money (PPM AU).
- Lowest spreads: Bright Smart Securities (1428 HK), MCJ Co Ltd (6670 JP), Itochu Shokuhin (2692 JP), Sankei Real Estate (2972 JP), Toho Titanium (5727 JP).
10. Revisiting ENN Energy (2688 HK)’s Scheme & Parent’s H-Share Listing
- We are two weeks shy of a year since ENN Energy (2688 HK) first announced a cash/scrip Offer from ENN Natural Gas (600803 CH) (ENN-NG) its largest shareholder.
- The pushback, from the onset, was that the majority of the “Consideration” was in scrip into newly-listed ENN-NG H-shares.
- Pre-Con approvals now received from SAFE, NDRC, and MoC. CSRC, the listing watchdog, has yet to sign off. The Scheme Doc dispatch has thrice been delayed, now due ~30th April.
