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

Weekly Deals Digest (02 Aug) - Shein, Future Corp, Kakaku, Tamron, Australian Strategic, Perpetual

Weekly Deals Digest (16 Aug) - Shein, Kakaku, Austal, BetMakers, Cleanaway, Cygnus, FleetPartners

Kakaku.com (2371 JP): EQT/DG Again Outbids Bain/LY

Kakaku.com (2371 JP): Rethinking the Arb Trade

Digital Garage (4819 JP): Cheap, but Not Cheerful

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>Bain/<a href="https://www.smartkarma.com/entities/ly-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">LY (4689 JP)</a> revised their <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 to JPY3,520 (JPY3,640 if KDDI agrees to share buyback), a 2.0% premium to 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>’s JPY3,450 offer.</li>
<li>The latest Bain/LY offer mirrors the EQT/DG offer by gaming the competing offer clauses. Crucially, the new disclosure of Bain/LY IFA’s valuation range points to headroom for further increases.</li>
<li>EQT/DG can match Bain/LY’s JPY3,520 offer with a modest 2.0% increase to the effective cost of its 17 July offer. If it matches Bain/LY's effective cost, EQT can offer JPY3,790.</li>
</ul>


Bain/LY (4689 JP) revised their Kakaku.com Inc (2371 JP) offer to JPY3,520 (JPY3,640 if KDDI agrees to share buyback), a 2.0% premium to EQT/Digital Garage (4819 JP)’s JPY3,450 offer.
The latest Bain/LY offer mirrors the EQT/DG offer by gaming the competing offer clauses. Crucially, the new disclosure of Bain/LY IFA’s valuation range points to headroom for further increases.
EQT/DG can match Bain/LY’s JPY3,520 offer with a modest 2.0% increase to the effective cost of its 17 July offer. If it matches Bain/LY's effective cost, EQT can offer JPY3,790.


Kakaku.com (2371 JP): More to Go as Bain/LY Return with a Revised Offer