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 Event] The Crasus Chemical (646A JP) Spinoff from Resonac (4004 JP)
- Back in February 2024, Resonac Holdings (4004 JP) announced it would start an assessment of a partial spinoff of its petrochemicals division, Crasus Chemical (646A JP).
- Resonac updated in July 2026. In August the Board resolved to deliver 80+% of shares to Resonac investors. Today the TSE approved. Crasus starts trading on Resonac ex-rights day 29-September.
- The “center” value should be determined in about a week to ten days. The estimate of asset distribution right now is 0.09 per Resonac share. There will be index effects.
2. [Japan M&A] Nippon Sheet Glass (5202) Done, Dusted, Arb for Money
- Nippon Sheet Glass (5202 JP) announced 21-Aug that the capital injection expected a fair bit later would be done and paid for on 31-Aug. New term loans were agreed 26-Aug.
- That made 25 Sep the last trading day. On the 31st, they confirmed the capital injection had been paid for. Cash out for remaining shareholders would be late December 2026.
- Actual dates and confirmation waits until early November but buy today and that is 4.0% annualised (though the BOJ could act twice in the interim). Worth a look for arbs.
3. Golfzon Holdings (121440 KS): This Is A Buy And Hold
- At the close of its reloaded ₩6,700/Share Tender Offer for Golfzon Holdings (121440 KS), SJ Investment received zero shares. With no margin seller at ₩6,700, it seemed illogical to reload.
- And for now, they won’t, opting not to proceed with a follow-on delisting transaction.
- ₩6,700/Share was low-balled. It’s probably worth (at least) double this. If you have the bandwidth to wait this out, stay in. Or buy and hold. Load up on weakness.
4. BASE (4477 JP): SBI’s Partial Tender Offer Needs a Price Bump
- On 28 August, BASE Inc (4477 JP) announced an offer by SBI Holdings (8473 JP) to acquire up to 23.8m shares (20.00% stake) at JPY340, a 7.6% premium to the undisturbed price.
- There is no minimum acceptance condition. The shares are trading above the offer price, either due to expectations of a bump or to the SBI alliance benefiting the back-end valuation.
- A price bump is likely as the offer is light on several metrics, the two substantial shareholders are unlikely to tender, and the Board has taken a neutral stance.
5. Public Financial Holdings (626 HK): Public Bank’s Scheme Offer at HK$2.50
- Public Financial (626 HK) announced a scheme privatisation offer from Public Bank (PBK MK) at HK$2.50 per share, a 61.3% premium to the undisturbed price. The offer is final.
- The offer is well below book value (P/B of 0.35x) and light compared to peer multiples. However, it is an attractive exit as it represents a 10-year high.
- The vote is low-risk, as the high takeover premium will appeal to minorities given the near-term cash certainty compared to remaining a minority holder in an illiquid, 73%-controlled stock.
6. Hunter Turns Hunted As Ingenia Communities (INA AU) Rejects Warburg’s NBIO
- On the 26th August, real estate developer Peet Ltd (PPC AU) entered into cash/scrip Offer by way of a Scheme with Ingenia Communities (INA AU).
- The Scheme appeared clean. Decent premium to NTA. Major shareholder (of Peet) support. However, Ingenia’s share price has fallen 13% since the transaction was announced.
- This morning, Ingenia announced it has received, and rejected, a NBIO of A$4.75/share (in cash) from Warburg Pincus. The proposal is contingent on Ingenia not proceeding with the Peet Offer.
7. Skyworth (751 HK) Gives Up Spin-Off Gains. And Then Some
- On the 20th January 2026, Skyworth (751 HK) announced an inter-conditional Scheme and concurrent listing of 70%-held Skyworth Photovoltaic (Skyworth PV) on the HKEx, by way of introduction.
- The Dongfeng (489 HK)/Voyah (7489 HK)-like structure appeared fair. The challenge was that Skyworth PV’s key comps were/are A-share listed, and Skyworth PV should trade at an H-share discount.
- Currently trading right at the Scheme cash consideration, assigning zero value for Skyworth PV. Skyworth’s share price is 22% below the pre-spin-off announcement price. I can see this trending lower.
8. Merger Arb Mondays (07 Sep) – Skyworth, Z Fin, OFX, Cleanaway, EQT, European Lit, BetMakers, Kakaku
- I summarise the latest spreads and newsflow for the merger arb situations covered across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
- Highest spreads: Skyworth (751 HK), Changhong Jiahua (3991 HK), European Lithium (EUR AU), Z Fin (1168 HK), OFX Group (OFX AU), Cleanaway Waste Management (CWY AU), Atlantic Lithium (A11 AU).
- Lowest spreads: Accent Group (AX1 AU), FleetPartners Group (FPR AU), Kakaku.com Inc (2371 JP), Vault Minerals Ltd (VAU AU), Ausgold Ltd (AUC AU), Japan Property Management Center (3276 JP).
9. Hong Ra-Hee Is Selling 1.9 Trillion Won of Samsung Electronics to Her Son Lee Jae-Yong
- After the market close on 9 September, it was reported that Hong Ra-hee is selling a 0.11% stake in Samsung Electronics (worth 1.94 trillion won) to her son Lee Jae-yong.
- Her decision to transfer the shares directly to Chairman Lee rather than selling them on the open market is seen as a move to minimize the impact on the market.
- After this transaction is completed, Lee Jae-yong’s stake in Samsung Electronics will rise from 1.47% to 1.58%.
10. [Japan M&A] EQT Bumps Kakaku Bid to ¥3,680 – Through Bain’s Bid – Means Bain Bid Likely Soon
- Today, on the last day of the earlier bump to ¥3,571 by EQT/DG, which was bumped from ¥3,570 (when shares were trading ¥3,700) and extended, EQT bumped/extended to ¥3,680/share.
- This is, of course, a bit more than 1% higher than the existing Bain best bid and the level Oasis had set as a minimum – ¥3,640.
- EQT tried to get Oasis to sign on but they did not agree. They are waiting for Bain’s overbid I expect. This now puts the floor at ¥3,680.
