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-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

David Blennerhassett

<ul>
<li>There are 36 - mostly firm - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>Five new deals this week involving <a href="https://www.smartkarma.com/entities/hitachi-transport-system-ltd" target="_blank" data-smartkarma-citation="entities:2395:1" rel="noopener">Hitachi Transport (9086 JP)</a>, <a href="https://www.smartkarma.com/entities/lanzhou-zhuangyuan-pasture-co-ltd" target="_blank" data-smartkarma-citation="entities:10174:1" rel="noopener">Lanzhou Zhuangyuan Pasture (1533 HK)</a>, <a href="https://www.smartkarma.com/entities/beijing-enterprises-urban-re" target="_blank" data-smartkarma-citation="entities:29131:1" rel="noopener">Beijing Enterprises Urban (3718 HK)</a>, <a href="https://www.smartkarma.com/entities/sph-reit" target="_blank" data-smartkarma-citation="entities:5994:1" rel="noopener">SPH REIT (SPHREIT SP)</a>, and <a href="https://www.smartkarma.com/entities/shin-keisei-electric-railway" target="_blank" data-smartkarma-citation="entities:6262" rel="noopener">Shin Keisei Electric Railway (9014 JP)</a>.</li>
<li>Key updates took place for: <a href="https://www.smartkarma.com/entities/western-areas-ltd" target="_blank" data-smartkarma-citation="entities:15497:1" rel="noopener">Western Areas (WSA AU)</a>, <a href="https://www.smartkarma.com/entities/guodian-technology-environment-group-corp" target="_blank" data-smartkarma-citation="entities:3941:1" rel="noopener">Guodian Technology &amp; Environment Group (1296 HK)</a>, <a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a>, <a href="https://www.smartkarma.com/entities/true-corp-pcl" target="_blank" data-smartkarma-citation="entities:8:1" rel="noopener">True Corp (TRUE TB)</a> / <a href="https://www.smartkarma.com/entities/total-access-communication" target="_blank" data-smartkarma-citation="entities:948:1" rel="noopener">Total Access Communication (DTAC TB)</a>.</li>
</ul>


There are 36 - mostly firm - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Five new deals this week involving Hitachi Transport (9086 JP), Lanzhou Zhuangyuan Pasture (1533 HK), Beijing Enterprises Urban (3718 HK), SPH REIT (SPHREIT SP), and Shin Keisei Electric Railway (9014 JP).
Key updates took place for: Western Areas (WSA AU), Guodian Technology &amp; Environment Group (1296 HK), Toyo Construction (1890 JP), True Corp (TRUE TB) / Total Access Communication (DTAC TB).


Asia-Pac Weekly Risk Arb Wrap: Hitachi Transport, SPH Reit, Toyo Construction, True/DTAC

<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 (Very 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 Nikkei Leak Article 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 Transport System, Ltd. provides freight truck, port harbor, and marine transportation, logistics, cargo handling, warehousing, and customs clearing services.  The Company mainly transports Hitachi Ltd's freight such as industrial machinery and precision equipment.

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Hitachi Transport System (9086 JP)

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

Asia-Pac Weekly Risk Arb Wrap: Hitachi Transport, SPH Reit, Toyo Construction, True/DTAC

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

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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