Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cmic-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15558:1" rel="noopener">CMIC Holdings (2309 JP)</a> decided to "change its business model" this past spring, transferring control of a consolidated JV and other subs to DNP. </li>
<li>The result changed the accounting, and the business model, capitalising future cashflow and net income in a "hidden" asset which may or may not be in the Financial Advisor's valuation.</li>
<li>My read is this is being done too cheaply, and the price should be 30-60% higher. But, it would be tough to block this.</li>
</ul>



CMIC Holdings (2309 JP) decided to "change its business model" this past spring, transferring control of a consolidated JV and other subs to DNP. 
The result changed the accounting, and the business model, capitalising future cashflow and net income in a "hidden" asset which may or may not be in the Financial Advisor's valuation.
My read is this is being done too cheaply, and the price should be 30-60% higher. But, it would be tough to block this.


CMIC (2309 JP) - Huge Business Model Plan Appears to Hide Assets, Then an MBO. Ugh...

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cmic-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15558:1" rel="noopener">CMIC Holdings (2309 JP)</a> has recommended an MBO tender offer of JPY2,650 per share, a 55.9% premium to the undisturbed price (7 November).</li>
<li>The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 41.29% ownership ratio.</li>
<li>Irrevocables to accept represent a 23.29% ownership ratio. While the offer is light vs. peer multiples, the minimum acceptance condition requires a 35.1% minority acceptance rate, which is doable.</li>
</ul>



CMIC Holdings (2309 JP) has recommended an MBO tender offer of JPY2,650 per share, a 55.9% premium to the undisturbed price (7 November).
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 41.29% ownership ratio.
Irrevocables to accept represent a 23.29% ownership ratio. While the offer is light vs. peer multiples, the minimum acceptance condition requires a 35.1% minority acceptance rate, which is doable.


CMIC Holdings (2309 JP): MBO Tender Offer at JPY2,650

David Blennerhassett

<ul>
<li>For the month of June 2024, 8 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$6bn.</li>
<li>The average premium for the new transactions announced (or first discussed) in June was ~52%. The average premium YTD is ~47%. </li>
<li>This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.</li>
</ul>


For the month of June 2024, 8 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$6bn.
The average premium for the new transactions announced (or first discussed) in June was ~52%. The average premium YTD is ~47%. 
This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.


(Mostly) Asia M&A, June 2024: Fancl, Capitol Health, Infocom,Jeisys Medical, Nagatanien, Henlius Bio

<ul>
<li>For the month of May 2024, 10 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$6.6bn.</li>
<li>The average premium for the new transactions announced (or first discussed) in May was ~60%. The average premium YTD is ~46%. Japan is well up yoy. Hong Kong is down.</li>
<li>This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.</li>
</ul>


For the month of May 2024, 10 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$6.6bn.
The average premium for the new transactions announced (or first discussed) in May was ~60%. The average premium YTD is ~46%. Japan is well up yoy. Hong Kong is down.
This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.


(Mostly) Asia M&A, May 2024: Malaysia Airports, Alps Logistics, Nihon Housing, Great Eastern

<ul>
<li>For the month of April 2024, 7 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$4bn. </li>
<li>The average premium for the new transactions announced (or first discussed) in April was ~55%. The average premium YTD is ~42%. </li>
<li>This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.</li>
</ul>


For the month of April 2024, 7 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$4bn. 
The average premium for the new transactions announced (or first discussed) in April was ~55%. The average premium YTD is ~42%. 
This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.


(Mostly) Asia M&A, April 2024: Austal, L'Occitane, Langham Hosp., Jastec, Mimasu, Best World, Isetan

Japan

Shin Nippon Biomedical Laboratories Ltd is a contract research organization. The Company provides pre-clinical testing services in the pharmaceutical industry.

MEDINET Co., Ltd. mainly provides facilities, technology, and specialists of immunotherapeutics to medical institutions.

LINICAL CO LTD is a Contract Research Organization (CRO) for Pharmaceutical Companies. The company specializes in Clinical Research Associate of Phase II and Phase III, while conducting other clinical trial related services such as Quality Management and Consulting.

JTEC Corporation of Osaka manufactures bio-technology systems and equipment. The Company produces life science devices, x ray mirrors, and automated cell culture systems. JTEC also develops pharmaceutical products. JTEC serves clients in Japan.

Precision System Science Co., Ltd. manufactures tools, equipment, and software for gene, immunity, bacteria, and medicine research and analysis.  The Company develops DNA sampling system, illuminant capture operation system, and bacteria tests with use of magtration technology (magnetic particles used for reactions, sampling, irradiation, and measuring.)

Chiome Bioscience Inc. designs, develops, and sells monoclonal antibody products for medicine, diagnosis, testing, and life sciences researches. The Company offers research tools and examination material, including diagnostic kits and ethical drugs.

Carna Biosciences, Inc. is a biotechnology company. The Company specializes in intercellular signaling-based drug discovery, as well as as provide drug discovery services to pharmaceutical companies.

Immuno-Biological Laboratories Co., Ltd. specializes in research and development of antibodies.  The Company sells antibody related assays and medicinal drugs to research institutions and pharmaceutical companies.

DNA Chip Research Inc. develops and sells Oligo DNA chips.   The Company also provides research and analysis services.

Human Metabolome Technologies Inc. offers metabolome analysis services, biomarker discovery and clinical diagnostic research.  The company also sells reagent kits and manages metabolome technical staffing services.

Selvita Spolka Akcyjna operates as a pharmaceutical company. The Company discovers drugs, as well as provides research and development services. Selvita serves customers worldwide.

Genfit is a biopharmaceutical company.  The Company researches treatments for cardiovascular, metabolic and inflammatory diseases, and age-linked neurodegenerative disorders.

Guangzhou Boji Medical & Biotechnological Co., Ltd. is an outsourcing drug research and development company. The Company provides pharmaceutical companies the ability to conduct its researches and developments at lower cost levels and offers support to bring drugs and devices to the Chinese market quicker.

Personalis, Inc. provides genomic sequencing and analytics solutions. The Company supports the development of personalized cancer vaccines and other next-generation cancer immunotherapies. Personalis serves customers worldwide.

Pacific Biosciences of California Inc. has developed a novel approach to studying the synthesis and regulation of DNA, RNA and protein.  The Company's system enables real-time analysis of biomolecules with single molecule resolution.

Pacific Biosciences Of California (PACB US)

Guangzhou Improve Medical Instruments Co., Ltd. researches, develops, and manufactures medical instruments. The Company's products include evacuated blood collection system, microbe specimen collection and transport, clinical testing reagent, equipment for clinical specimen testing & processing, etc.

Macrogen Inc. provides DNA sequencing and genome research services.  The Company also raises and sells transgenic and knockout mice to biotechnology institutes and pharmaceutical companies.  Macrogen develops DNA chips, which are used to improve the diagnosis and treatment of disease as well.

Harvard Bioscience, Inc. develops, manufactures, and markets tools used in drug discovery research and pharmaceutical and biotechnology companies, universities, and government laboratories.  The Company's tools include proteomics products that allow researchers to purify and analyze proteins and ADMET screening products that test drug candidates.

Vimta Labs Ltd. provides multi-disciplinary contract research and testing services in India in the areas of clinical research, pre-clinical (animal) studies, clinical reference lab services, environmental assessments and analytical testing of a wide variety of products.

Genetic Signatures Ltd. develops and commercializes molecular diagnostic platform. The Company offers products for the routine detection of infectious diseases and pathogens. Genetic Signatures serves the hospitals and pathology laboratories in Australia.

CMIC Holdings Co., Ltd. is a Contract Research Organization (CRO) who provides medical research related services mainly to pharmaceuticals and medical organizations. Its service ranges from strategy and regulatory consulting, clinical monitoring,and data management.

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CMIC Holdings (2309 JP)

CMIC (2309 JP) - Huge Business Model Plan Appears to Hide Assets, Then an MBO. Ugh...

CMIC had under-earning corporate entities. It sold control (keeping 49% to DNP) de-consolidating the sales and earnings. That lowers revenues +...

Travis Lundy