Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In December 2019, an article in slightly odd Japanese business magazine Sentaku (選択) suggested <a href="https://www.smartkarma.com/entities/fujitsu-ltd" target="_blank" data-smartkarma-citation="entities:16968:1" rel="noopener">Fujitsu Ltd (6702 JP)</a> would imminently seek to address dual listings of subs.</li>
<li>Some subs went early. The auction for <a href="https://www.smartkarma.com/entities/fujitsu-general-ltd" target="_blank" data-smartkarma-citation="entities:2025:1" rel="noopener">Fujitsu General (6755 JP)</a> started spring 2023, failed, started again, failed again, and the shares languished. </li>
<li>Two years later we have a deal. Large privately-held company Paloma-Rheem Holdings is the buyer in a split-price deal which comes at a decent but not exorbitant premium.</li>
</ul>


In December 2019, an article in slightly odd Japanese business magazine Sentaku (選択) suggested Fujitsu Ltd (6702 JP) would imminently seek to address dual listings of subs.
Some subs went early. The auction for Fujitsu General (6755 JP) started spring 2023, failed, started again, failed again, and the shares languished. 
Two years later we have a deal. Large privately-held company Paloma-Rheem Holdings is the buyer in a split-price deal which comes at a decent but not exorbitant premium.


Fujitsu General (6755) - Long Sale Process Finally Over. Unexciting but Uncomplicated Deal.

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/fujitsu-general-ltd" target="_blank" data-smartkarma-citation="entities:2025:1" rel="noopener">Fujitsu General (6755 JP)</a> announced a preconditional tender offer from Paloma Rheem Holdings Co at JPY2,808 per share, a 23.5% premium to the last close.</li>
<li>The offer, which is preconditional on regulatory approvals and will open in early July, is attractive compared to historical trading ranges and peer multiples.</li>
<li>The process is lacking as Fujitsu declined to conduct an auction. The offer is below the midpoint of the IFA DCF valuation range, and the Board requested price.</li>
</ul>



Fujitsu General (6755 JP) announced a preconditional tender offer from Paloma Rheem Holdings Co at JPY2,808 per share, a 23.5% premium to the last close.
The offer, which is preconditional on regulatory approvals and will open in early July, is attractive compared to historical trading ranges and peer multiples.
The process is lacking as Fujitsu declined to conduct an auction. The offer is below the midpoint of the IFA DCF valuation range, and the Board requested price.


Fujitsu General (6755 JP): Fujitsu (6702 JP) Supports a Light Tender Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fujitsu-general-ltd" target="_blank" data-smartkarma-citation="entities:2025:1" rel="noopener">Fujitsu General (6755 JP)</a> came out with an ugly Q3 and ugly full-year forecast change. It appears there is lots of inventory-clearing in the channel in addition to macroeconomic headwinds. </li>
<li>The split is a little difficult to discern, but the reason for channel-clearing makes a lot of sense from the distributor side. How long it lasts hard to know.</li>
<li>This creates the impetus for more cost-cutting/restructuring measures before a delayed v-bound to March 2025. Fujitsu STILL wants to sell. It may make extraordinary proposals to get it done.</li>
</ul>



Fujitsu General (6755 JP) came out with an ugly Q3 and ugly full-year forecast change. It appears there is lots of inventory-clearing in the channel in addition to macroeconomic headwinds. 
The split is a little difficult to discern, but the reason for channel-clearing makes a lot of sense from the distributor side. How long it lasts hard to know.
This creates the impetus for more cost-cutting/restructuring measures before a delayed v-bound to March 2025. Fujitsu STILL wants to sell. It may make extraordinary proposals to get it done.


Fujitsu General (6755) - UGLY Forecast Change but Fujitsu Still Wants Out

<ul>
<li>In 2019, it became apparent <a href="https://www.smartkarma.com/entities/fujitsu-ltd" target="_blank" data-smartkarma-citation="entities:16968:1" rel="noopener">Fujitsu Ltd (6702 JP)</a> wanted to sell down its stakes in non-core businesses (Shinko Electric, Fujitsu General, and FDK), and move on to better things.</li>
<li>In early January 2023, a Bloomberg article suggested a sale process. A 20 Jan 2023 article suggested Fujitsu General's auction was imminent. I wrote a <a href="https://www.smartkarma.com/insights/fujitsu-general-6755-fujitsu-s-stake-on-the-block" target="_blank" rel="noopener">piece</a>. It was not bullish.</li>
<li>The stock rose a bit, then fell 40+% through last week. Now another article suggests some urgency at Fujitsu. That changes things.</li>
</ul>


In 2019, it became apparent Fujitsu Ltd (6702 JP) wanted to sell down its stakes in non-core businesses (Shinko Electric, Fujitsu General, and FDK), and move on to better things.
In early January 2023, a Bloomberg article suggested a sale process. A 20 Jan 2023 article suggested Fujitsu General's auction was imminent. I wrote a piece. It was not bullish.
The stock rose a bit, then fell 40+% through last week. Now another article suggests some urgency at Fujitsu. That changes things.


Fujitsu General (6755) - Fujitsu Wants Out, May Force the Issue

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>The Nikkei 225 index dropped by 2.7% this week, closing at 37,913 points, due to political uncertainty ahead of Japan's general election, rising global bond yields, and disappointing economic data</li>
<li>Japan's weakening services and manufacturing sectors, as indicated by declining PMIs and easing inflation, highlight slowing domestic demand and economic uncertainty, raising concerns about future growth prospects.</li>
<li>Konica Minolta (4902): Gained 25% after activist investor, Effissimo Capital, declared a significant 5.8% stake in the company.</li>
</ul>


The Nikkei 225 index dropped by 2.7% this week, closing at 37,913 points, due to political uncertainty ahead of Japan's general election, rising global bond yields, and disappointing economic data
Japan's weakening services and manufacturing sectors, as indicated by declining PMIs and easing inflation, highlight slowing domestic demand and economic uncertainty, raising concerns about future growth prospects.
Konica Minolta (4902): Gained 25% after activist investor, Effissimo Capital, declared a significant 5.8% stake in the company.


Japan Weekly | Nikkei Drops; Political Uncertainty; Weakening Economy

Japan

Fujitsu General Ltd. manufactures air-conditioning units, refrigerators, and information-communication equipment. The products include air conditioners, and purifiers. The Company also manufactures computer software and electronic devices.

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Fujitsu General (6755 JP)

Fujitsu General (6755) - Long Sale Process Finally Over. Unexciting but Uncomplicated Deal.

Fujitsu has finally found a buyer for Fujitsu General. It is not a surprising buyer, but the name will be new to many outside of Japan. The deal...

Travis Lundy