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/hitachi-maxell-ltd" target="_blank" data-smartkarma-citation="entities:2484:1" rel="noopener">Maxell Ltd (6810 JP)</a> has been restructuring itself and the cost-cutting and rationalising of sales efforts and regions has led to post-relisting record OP.</li>
<li>But another (non-cash) write-off this past year has led to the third year of net losses in a row.</li>
<li>The company has, however, taken its actual cashflows and turned them into a large buyback</li>
</ul>



Maxell Ltd (6810 JP) has been restructuring itself and the cost-cutting and rationalising of sales efforts and regions has led to post-relisting record OP.
But another (non-cash) write-off this past year has led to the third year of net losses in a row.
The company has, however, taken its actual cashflows and turned them into a large buyback


Hitachi Maxell (6810 JP) - Very Big On-Market Buyback

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hitachi-ltd" target="_blank" data-smartkarma-citation="entities:7797:1" rel="noopener">Hitachi Ltd (6501 JP)</a> results were salutary but noisy and the year to March 2023 is forecast similar (salutary but noisy). Service integration and growth to external customers is key.</li>
<li>Forecast growth in main businesses ex- to-be-sold listed subs is decent, but could be better. </li>
<li>A SEMI-Bigly buyback will help cushion any selling, but it has recently outrun Siemens on a like-for-like basis.</li>
</ul>



Hitachi Ltd (6501 JP) results were salutary but noisy and the year to March 2023 is forecast similar (salutary but noisy). Service integration and growth to external customers is key.
Forecast growth in main businesses ex- to-be-sold listed subs is decent, but could be better. 
A SEMI-Bigly buyback will help cushion any selling, but it has recently outrun Siemens on a like-for-like basis.


Hitachi Results, Special Gain on Asset Sale, and Semi-Bigly Buyback

<ul>
<li>KKR and <a href="https://www.smartkarma.com/entities/hitachi-ltd" target="_blank" data-smartkarma-citation="entities:7797:1" rel="noopener">Hitachi Ltd (6501 JP)</a> have a deal to get KKR to buy <a href="https://www.smartkarma.com/entities/hitachi-transport-system-ltd" target="_blank" data-smartkarma-citation="entities:2395:1" rel="noopener">Hitachi Transport System (9086 JP)</a> in a VLBO (<em>Very</em> Leveraged BuyOut). </li>
<li>As somewhat expected, it is a "split price deal" where Hitachi will accept a lower price for its 40% stake than minorities will receive in a Tender Offer. </li>
<li>This is a big win for Hitachi Transport shareholders, but the Tender Offer likely won't start until late September.</li>
</ul>


KKR and Hitachi Ltd (6501 JP) have a deal to get KKR to buy Hitachi Transport System (9086 JP) in a VLBO (Very Leveraged BuyOut). 
As somewhat expected, it is a "split price deal" where Hitachi will accept a lower price for its 40% stake than minorities will receive in a Tender Offer. 
This is a big win for Hitachi Transport shareholders, but the Tender Offer likely won't start until late September.


Hitachi Transport System (9086) Shareholders Get the BIG Win in This VLBO

<ul>
<li>Hitachi has been in the process of selling <a href="https://www.smartkarma.com/entities/hitachi-transport-system-ltd" target="_blank" data-smartkarma-citation="entities:2395:1" rel="noopener">Hitachi Transport System (9086 JP)</a>. An article in the Nikkei Thursday last suggested a deal was imminent (both companies report 28 April). </li>
<li>Bloomberg carried an article this morning with more numbers and implied arithmetic. Then they revised the language in the article. </li>
<li>There is STILL room for different interpretations of likely deal price if one tries to parse all the info provided and match it with history. But we may be there.</li>
</ul>


Hitachi has been in the process of selling Hitachi Transport System (9086 JP). An article in the Nikkei Thursday last suggested a deal was imminent (both companies report 28 April). 
Bloomberg carried an article this morning with more numbers and implied arithmetic. Then they revised the language in the article. 
There is STILL room for different interpretations of likely deal price if one tries to parse all the info provided and match it with history. But we may be there.


Hitachi Transport (9086 JP) - Deciphering Takeover Price by Newspaper Article Language

<ul>
<li>The <em>Nikkei Leak Article</em> of the Hitachi Transport takeover price is out. That suggests board meetings and deal announcement are imminent</li>
<li>The price suggested in the article comes out to be just under ¥8,000. </li>
<li>Past deals between KKR and Hitachi for Hitachi subs (and the language of the article on deal structure) suggest the minority Tender Offer Price could be different.</li>
</ul>


The Nikkei Leak Article of the Hitachi Transport takeover price is out. That suggests board meetings and deal announcement are imminent
The price suggested in the article comes out to be just under ¥8,000. 
Past deals between KKR and Hitachi for Hitachi subs (and the language of the article on deal structure) suggest the minority Tender Offer Price could be different.


Hitachi Transport (9086) Takeover Deal Imminent

Japan

Hitachi, Ltd. manufactures communications and electronic equipment, heavy electrical and industrial machinery, and consumer electronics.  The Company's diverse product line ranges from nuclear power systems to kitchen appliances. Hitachi also operates subsidiaries in the wire and cable, metal, and chemical industries.

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Hitachi Ltd (6501 JP)

Hitachi Maxell (6810 JP) - Very Big On-Market Buyback

Maxell (6810) hit post-listing record OP as it recorded its third consecutive net loss but is answering that with an OP forecast increase and a...

Travis Lundy

Hitachi Results, Special Gain on Asset Sale, and Semi-Bigly Buyback

Hitachi's results were salutary. There is going to be more noise in segments as they are realigned again. A buyback will add support to shares but...

Travis Lundy

Hitachi Transport System (9086) Shareholders Get the BIG Win in This VLBO

Hitachi Transport (9086) shareholders score big with a Tender Offer takeout at JPY 8.913 for minority shareholders (while Hitachi sells 25+%...

Travis Lundy

Hitachi Transport (9086 JP) - Deciphering Takeover Price by Newspaper Article Language

Hitachi and Hitachi Transport (9086) report Thursday. I'd expect more details in the Nikkei on Thursday morning. In the meantime, we are probably...

Travis Lundy

Hitachi Transport (9086) Takeover Deal Imminent

The traditional Nikkei Leak Article is out, suggesting Hitachi will sell 30% for ¥200bn. Historically, Nikkei M&A arithmetic is sometimes off. But...

Travis Lundy

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