Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Murakami Group now owns 10.13% of <a href="https://www.smartkarma.com/entities/exedy-corp" target="_blank" data-smartkarma-citation="entities:6516:1" rel="noopener">Exedy Corp (7278 JP)</a>. Interestingly, NOMURA Aya sold 6.79% off-market to Minami Aoyama Fudosan. Has the Murakami Group made a "mistake" in its planning?</li>
<li>A big win for <a href="https://www.smartkarma.com/entities/eoflow-co-ltd" target="_blank" data-smartkarma-citation="entities:36100:1" rel="noopener">EOFlow (294090 KS)</a> as the U.S. Federal Appeals Court issued its decision on overturning <a href="https://www.smartkarma.com/entities/insulet-corp" target="_blank" data-smartkarma-citation="entities:5252:1" rel="noopener">Insulet Corp (PODD US)</a>'s provisional injunction</li>
<li>
<a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a> finally announces the share alternative.  And  Pleasant Lake (3.25% of shares out) will accept the share offer (either cash or scrip). This is a done deal</li>
</ul>


Murakami Group now owns 10.13% of Exedy Corp (7278 JP). Interestingly, NOMURA Aya sold 6.79% off-market to Minami Aoyama Fudosan. Has the Murakami Group made a "mistake" in its planning?
A big win for EOFlow (294090 KS) as the U.S. Federal Appeals Court issued its decision on overturning Insulet Corp (PODD US)'s provisional injunction

L'Occitane (973 HK) finally announces the share alternative.  And  Pleasant Lake (3.25% of shares out) will accept the share offer (either cash or scrip). This is a done deal


Last Week in Event SPACE: Exedy Corp, EOFlow, L'Occitane, Jardine Cycle & Carriage

Travis Lundy

<ul>
<li>Late May, <a href="https://www.smartkarma.com/entities/aisin-corp" target="_blank" data-smartkarma-citation="entities:11809:1" rel="noopener">Aisin (7259 JP)</a> announced a sell-down of its 34% stake in <a href="https://www.smartkarma.com/entities/exedy-corp" target="_blank" data-smartkarma-citation="entities:6516:1" rel="noopener">Exedy Corp (7278 JP)</a> - a big non-dilutive offering, pricing 11% below undisturbed. Exedy announced a buyback.</li>
<li>Announced on the 27th of May, shares fell sharply the next day, it priced on the 3rd, and offering shares traded on the 10th. Then the price started climbing back.</li>
<li>My <a href="https://www.smartkarma.com/insights/cash-rich-exedy-7278-sees-huge-offering-offset-by-huge-buyback-watch-for-short-term-games" target="_blank" rel="noopener">first</a> and <a href="https://www.smartkarma.com/insights/exedy-7278-huge-offering-resized-watch-the-dynamics-here" target="_blank" rel="noopener">second</a> pieces argued that buyback accretion, index impact, and change in register shape all meant it was a buy. Activist Murakami agreed, now he has 6.5%. </li>
</ul>


Late May, Aisin (7259 JP) announced a sell-down of its 34% stake in Exedy Corp (7278 JP) - a big non-dilutive offering, pricing 11% below undisturbed. Exedy announced a buyback.
Announced on the 27th of May, shares fell sharply the next day, it priced on the 3rd, and offering shares traded on the 10th. Then the price started climbing back.
My first and second pieces argued that buyback accretion, index impact, and change in register shape all meant it was a buy. Activist Murakami agreed, now he has 6.5%. 


[JAPAN ACTIVISM] - Murakami Group Goes Activisting on Exedy (7278) - Room To Run

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>Murakami's entity, City Index Eleventh, and daughter reported a 5.46% position in <a href="https://www.smartkarma.com/entities/exedy-corp" target="_blank" data-smartkarma-citation="entities:6516:1" rel="noopener">Exedy Corp (7278 JP)</a>. The shares purchases began two days after the <a href="https://www.smartkarma.com/entities/aisin-corp" target="_blank" data-smartkarma-citation="entities:11809:1" rel="noopener">Aisin (7259 JP)</a> secondary offering.</li>
<li>Murakami's average buy-in price is JPY2,607.30 per share, 2.3% higher than the recent secondary offering price of JPY2,549.</li>
<li>Murakami's disclosure suggests two possibilities: the start of an activist campaign or a short-term pump-and-dump play. Recent precedents suggest the latter.</li>
</ul>


Murakami's entity, City Index Eleventh, and daughter reported a 5.46% position in Exedy Corp (7278 JP). The shares purchases began two days after the Aisin (7259 JP) secondary offering.
Murakami's average buy-in price is JPY2,607.30 per share, 2.3% higher than the recent secondary offering price of JPY2,549.
Murakami's disclosure suggests two possibilities: the start of an activist campaign or a short-term pump-and-dump play. Recent precedents suggest the latter.


Exedy Corp (7278 JP): Murakami Becomes a Substantial Shareholder

<ul>
<li>On Monday 27 May, <a href="https://www.smartkarma.com/entities/aisin-corp" target="_blank" data-smartkarma-citation="entities:11809:1" rel="noopener">Aisin (7259 JP)</a> announced an offering to sell ALL of its 36+% stake in equity affiliate <a href="https://www.smartkarma.com/entities/exedy-corp" target="_blank" data-smartkarma-citation="entities:6516:1" rel="noopener">Exedy Corp (7278 JP)</a> for likely ¥40bn+. </li>
<li>Exedy announced a big buyback to go with it. It bought back 30% of the total on Weds morning, and that reduced the size of the offer. </li>
<li>I had expected "short-term games" but we haven't really had them. Which is a bit weird. This update shows the details and dynamics (they differ).</li>
</ul>


On Monday 27 May, Aisin (7259 JP) announced an offering to sell ALL of its 36+% stake in equity affiliate Exedy Corp (7278 JP) for likely ¥40bn+. 
Exedy announced a big buyback to go with it. It bought back 30% of the total on Weds morning, and that reduced the size of the offer. 
I had expected "short-term games" but we haven't really had them. Which is a bit weird. This update shows the details and dynamics (they differ).


Exedy (7278) Huge Offering Resized - Watch the Dynamics Here

<ul>
<li>Toyota equity affiliate <a href="https://www.smartkarma.com/entities/aisin-corp" target="_blank" data-smartkarma-citation="entities:11809:1" rel="noopener">Aisin (7259 JP)</a> last September said it would sell all its crossholdings. That now includes a 36.5% stake in <a href="https://www.smartkarma.com/entities/exedy-corp" target="_blank" data-smartkarma-citation="entities:6516:1" rel="noopener">Exedy Corp (7278 JP)</a>. </li>
<li>Today, they announced an offering of all the shares (when including the greenshoe). That is nearly ¥50bn. That is offset by a ¥15bn buyback which could reduce the offering size.</li>
<li>Games may be played, but there is considerable accretion, and Exedy will see higher float and still-high net cash.</li>
</ul>


Toyota equity affiliate Aisin (7259 JP) last September said it would sell all its crossholdings. That now includes a 36.5% stake in Exedy Corp (7278 JP). 
Today, they announced an offering of all the shares (when including the greenshoe). That is nearly ¥50bn. That is offset by a ¥15bn buyback which could reduce the offering size.
Games may be played, but there is considerable accretion, and Exedy will see higher float and still-high net cash.


Cash-Rich Exedy (7278) Sees Huge Offering Offset by Huge Buyback - Watch For Short-Term Games

Japan

EXEDY Corporation manufactures drivetrain products for automobiles, industrial vehicles, and construction machinery.  The Company's products include manual clutches, torque converters, power shift transmissions, and hydraulic clutches. Exedy has its subsidiaries in South Korea, Australia, the US and the UK.

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Exedy Corp (7278 JP)

Last Week in Event SPACE: Exedy Corp, EOFlow, L'Occitane, Jardine Cycle & Carriage

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

[JAPAN ACTIVISM] - Murakami Group Goes Activisting on Exedy (7278) - Room To Run

The Murakami Group has now bought 10.1% of Exedy (7278). Interestingly, NOMURA Aya bought another 1.18% on 14 June to get to 9.59%, then sold 6.79%...

Travis Lundy