IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

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

On Wednesday, <a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">Softbank Group (9984 JP)</a> announced that through a convoluted series of transactions that it would effectively transfer its stake in <a href="https://www.smartkarma.com/entities/19603" target="_blank" data-smartkarma-citation="entities:19603:1">Yahoo Japan (4689 JP)</a> to <a href="https://www.smartkarma.com/entities/27445" target="_blank" data-smartkarma-citation="entities:27445:1">Softbank Corp (9434 JP)</a> (SBKK). After the transactions, SBKK will be Yahoo Japan’s largest shareholder with a 44.64% shareholding and SoftBank Group will cease to be a direct shareholder.<div class="content-highlight">SoftBank Group and Yahoo Japan’s key rationale for the transactions is to deepen further and expand the collaborative relationship between SBKK and Yahoo Japan, which presumably will generate shareholder value for the three parties involved. While the rationale for the transaction has some merit, it is not entirely convincing, in our view.</div>

On Wednesday, Softbank Group (9984 JP) announced that through a convoluted series of transactions that it would effectively transfer its stake in Yahoo Japan (4689 JP) to Softbank Corp (9434 JP) (SBKK). After the transactions, SBKK will be Yahoo Japan’s largest shareholder with a 44.64% shareholding and SoftBank Group will cease to be a direct shareholder.SoftBank Group and Yahoo Japan’s key rationale for the transactions is to deepen further and expand the collaborative relationship between SBKK and Yahoo Japan, which presumably will generate shareholder value for the three parties involved. While the rationale for the transaction has some merit, it is not entirely convincing, in our view.

SoftBank Group's Convoluted Yahoo Japan Transactions Leaves Unanswered Questions

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar. 

Lucror Analytics - Morning Views Asia - 09 May 2019

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

There is a lot to unpack from Softbank Corp.'s Q4 18 result announcement including a change in where Yahoo Japan sits within Softbank Group, confidence on mobile pricing levels and operating income growth despite changes at DoCoMo, and qualitative comments pointing to higher investment in cashless payments and 5G deployment. Management also echoed comments from DoCoMo that low-cost handsets would gain ground as operators separate handset and service pricing.

There is a lot to unpack from Softbank Corp.'s Q4 18 result announcement including a change in where Yahoo Japan sits within Softbank Group, confidence on mobile pricing levels and operating income growth despite changes at DoCoMo, and qualitative comments pointing to higher investment in cashless payments and 5G deployment. Management also echoed comments from DoCoMo that low-cost handsets would gain ground as operators separate handset and service pricing. 

Softbank Corp: Key Takeaways from Q4 Include Yahoo Japan Deal and Confidence on Mobile Pricing

Lucror Analytics - Morning Views Asia - 06 May 2019

The WSJ is reporting that <a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">Softbank Group (9984 JP)</a> could take the Vision Fund public later this year. How markets react in the near term will have a lot to do with whether Softbank does more work on it, and we should get a better idea of how serious management is when CEO Son presents year-end results later this week. Considering Softbank's constant need for capital, a proposed IPO is probably more about the use of proceeds than valuation. In the case of the latter, there is not much to say yet as key issues like pricing, the use of proceeds and the level of disclosure are far from being decided.

The WSJ is reporting that Softbank Group (9984 JP) could take the Vision Fund public later this year. How markets react in the near term will have a lot to do with whether Softbank does more work on it, and we should get a better idea of how serious management is when CEO Son presents year-end results later this week. Considering Softbank's constant need for capital, a proposed IPO is probably more about the use of proceeds than valuation. In the case of the latter, there is not much to say yet as key issues like pricing, the use of proceeds and the level of disclosure are far from being decided.

Softbank: Initial Thoughts on a Possible Vision Fund IPO

Japan

SoftBank Group Corp. provides telecommunication services. The Company also operates ADSL (Asymmetric Digital Subscriber Line) and fiber optic high-speed Internet connection, e-Commerce businesses, and Internet based advertising and auction businesses.

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Softbank Group (9984 JP)

SoftBank Group's Convoluted Yahoo Japan Transactions Leaves Unanswered Questions

On Wednesday, Softbank Group (9984 JP) announced that through a convoluted series of transactions that it would effectively transfer its stake in...

Arun George

Lucror Analytics - Morning Views Asia - 09 May 2019

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Softbank Corp: Key Takeaways from Q4 Include Yahoo Japan Deal and Confidence on Mobile Pricing

There is a lot to unpack from Softbank Corp.'s Q4 18 result announcement including a change in where Yahoo Japan sits within Softbank Group,...

Kirk Boodry

Lucror Analytics - Morning Views Asia - 06 May 2019

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Softbank: Initial Thoughts on a Possible Vision Fund IPO

The WSJ is reporting that Softbank Group (9984 JP) could take the Vision Fund public later this year. How markets react in the near term will have...

Kirk Boodry

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