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

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

Weekly Deals Digest (19 Jul) - Digital Garage, Kakaku, Get Nice, Shengmu, OOh!Media, Perpetual

Kakaku.com (2371 JP): Bain/LY’s Binding Offer May Get the Job Done

Kakaku.com (2371 JP): Digital Garage Moves to Thwart Bain/LY

Kakaku.com (2371 JP): How High Can It Go as Bain/LY Ups the Ante?

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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>
<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>’s shares have been trading above Bain/<a href="https://www.smartkarma.com/entities/ly-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">LY (4689 JP)</a>’s preconditional binding offer of JPY3,384 (if KDDI agrees to a share buyback, the offer is at JPY3,500).</li>
<li>I previously opined that the probability of a bidding war is low. However, disclosure on 2 July showed that EQT increased its offer to JPY3,300 on 22 June.</li>
<li>EQT can match Bain/LY’s JPY3,500 offer with a modest 2.4% increase to the effective cost of its 22 June offer. If it matches Bain/LY's effective cost, EQT can offer JPY3,643.</li>
</ul>



Kakaku.com Inc (2371 JP)’s shares have been trading above Bain/LY (4689 JP)’s preconditional binding offer of JPY3,384 (if KDDI agrees to a share buyback, the offer is at JPY3,500).
I previously opined that the probability of a bidding war is low. However, disclosure on 2 July showed that EQT increased its offer to JPY3,300 on 22 June.
EQT can match Bain/LY’s JPY3,500 offer with a modest 2.4% increase to the effective cost of its 22 June offer. If it matches Bain/LY's effective cost, EQT can offer JPY3,643.


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