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 (10 May) - Kakaku, Atlantic Lithium, Atlas, European Lithium, Vault, Shengmu

Kakaku.com (2371 JP): Pass the Popcorn as EQT Launches a Tender Offer

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

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Global Equity Research Ltd

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Event-Driven

<ul>
<li>On 23 April, <a href="https://theedgemalaysia.com/node/800975" target="_blank" rel="noopener">Bloomberg</a> reported that <a href="https://www.smartkarma.com/entities/eqt-ab" target="_blank" data-smartkarma-citation="entities:28922:1" rel="noopener">EQT (EQT SS)</a> is considering a takeover of <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>, resulting in the last close being 29.7% above the undisturbed price. </li>
<li>The shareholder structure is conducive to a privatisation bid. The three substantial shareholders would entertain an attractive offer, despite having differing end goals.</li>
<li>The Bloomberg article did not disclose the potential offer price. My analysis suggests an offer price around JPY3,000, 9.1% above the last close.</li>
</ul>


On 23 April, Bloomberg reported that EQT (EQT SS) is considering a takeover of Kakaku.com Inc (2371 JP), resulting in the last close being 29.7% above the undisturbed price. 
The shareholder structure is conducive to a privatisation bid. The three substantial shareholders would entertain an attractive offer, despite having differing end goals.
The Bloomberg article did not disclose the potential offer price. My analysis suggests an offer price around JPY3,000, 9.1% above the last close.


Kakaku.com (2371 JP): Thoughts on a Potential EQT Privatisation Offer