IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Merger Arb Mondays (05 Oct) - Kadoya, Kakaku, Leopalace21, Taiyo, Ingenia, Peet, OFX, Cleanaway

Kakaku.com (2371 JP): Third JPY1 Bump, Same Stalemate, Limited Upside Left

Kakaku.com (2371 JP): Bain/LY’s Latest Offer Is Playing a Dangerous Game

Kakaku.com (2371 JP): Bain/LY Hold Firm as EQT/DG Face a Dilemma

Kakaku.com (2371 JP): No Messing Around as EQT/DG Goes with a JPY3,680 Offer

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Global Equity Research Ltd

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Event-Driven

<ul>
<li>EQT/<a href="https://www.smartkarma.com/entities/digital-garage-inc" target="_blank" data-smartkarma-citation="entities:13747:1" rel="noopener">Digital Garage (4819 JP)</a> raised its <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com Inc (2371 JP)</a> offer by JPY1 to JPY3,681, extending the closing to 14 October. EQT/DG argue that Bain/LY's JPY3,597 offer cannot launch.</li>
<li>EQT/DG's criticism is only partly valid. Its primary argument is circular, and the market-manipulation claim looks overstated. Still, Bain/LY's pricing below the thresholds and its unclear launch are real weaknesses.</li>
<li>Bain/LY's most credible path is a substantive bump above JPY3,755, ideally towards the high end of the IFA DCF range (JPY3,923). Anything else risks EQT/DG winning.</li>
</ul>


EQT/Digital Garage (4819 JP) raised its Kakaku.com Inc (2371 JP) offer by JPY1 to JPY3,681, extending the closing to 14 October. EQT/DG argue that Bain/LY's JPY3,597 offer cannot launch.
EQT/DG's criticism is only partly valid. Its primary argument is circular, and the market-manipulation claim looks overstated. Still, Bain/LY's pricing below the thresholds and its unclear launch are real weaknesses.
Bain/LY's most credible path is a substantive bump above JPY3,755, ideally towards the high end of the IFA DCF range (JPY3,923). Anything else risks EQT/DG winning.


Kakaku.com (2371 JP): EQT/DG's JPY1 Bump Puts the Onus on Bain/LY to Go Big