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 (08 Feb) - Toyota Ind, Br Holdings, MCJ, Raksul, Guocoland, Montage, Kandenko

Toyota Industries (6201 JP): Scenarios Ahead of the First Close

Toyota Industries (6201 JP): Disclosure of Acceptances an Own Goal or a Shrewd Move?

Toyota Industries (6201 JP): Toyota Fudosan’s Revised Offer Is Arguably Light

Toyota Industries (6201 JP): Elliott Ramps up the Pressure

Toyota Industries (6201 JP): Evaluating Elliott’s Letter

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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/toyota-industries-corp" target="_blank" data-smartkarma-citation="entities:4500:1" rel="noopener">Toyota Industries (6201 JP)</a>’s 3Q results further emphasise that Toyota Fudosan’s JPY18,800 offer is light. The offer implies a P/B ratio of 0.93x based on the 3Q book value.</li>
<li>Fudosan’s assertion that it will not change the offer price is not credible. Elliott is likely to further increase its stake but is unlikely have its price expectations met.</li>
<li>Fudosan’s likely gameplan is to bump above 3Q book value (JPY21,300 to bring the P/B back to the pre-3Q ratio of 1.05x) and possibly also lower the minimum. </li>
</ul>



Toyota Industries (6201 JP)’s 3Q results further emphasise that Toyota Fudosan’s JPY18,800 offer is light. The offer implies a P/B ratio of 0.93x based on the 3Q book value.
Fudosan’s assertion that it will not change the offer price is not credible. Elliott is likely to further increase its stake but is unlikely have its price expectations met.
Fudosan’s likely gameplan is to bump above 3Q book value (JPY21,300 to bring the P/B back to the pre-3Q ratio of 1.05x) and possibly also lower the minimum. 


Toyota Industries (6201 JP): Who Wins This Game of Chicken?