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.

Event-Driven

<ul>
<li>On 7 November, the ACCC published a <a href="https://www.accc.gov.au/system/files/public-registers/documents/Blackstone%20I%27rom%20-%20Statement%20of%20Issues%20-%207%20November%202024.pdf?ref=0&amp;download=y" target="_blank" rel="noopener">Statement of Issues</a> outlining preliminary competition concerns on <a href="https://www.smartkarma.com/entities/blackstone-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone (BX US)</a>'s proposed acquisition of <a href="https://www.smartkarma.com/entities/i-rom-group-co-ltd" target="_blank" data-smartkarma-citation="entities:2686:1" rel="noopener">I'Rom Group (2372 JP)</a>. </li>
<li>The ACCC’s decision will be announced on 6 February 2025. In response, Blackstone has delayed (for the second time) the tender start to the end of February 2025.</li>
<li>The ACCC's competition concerns are potentially a deal breaker, as it is unclear if Blackstone can or will provide an undertaking to satisfy the ACCC’s concerns. </li>
</ul>


On 7 November, the ACCC published a Statement of Issues outlining preliminary competition concerns on Blackstone (BX US)'s proposed acquisition of I'Rom Group (2372 JP). 
The ACCC’s decision will be announced on 6 February 2025. In response, Blackstone has delayed (for the second time) the tender start to the end of February 2025.
The ACCC's competition concerns are potentially a deal breaker, as it is unclear if Blackstone can or will provide an undertaking to satisfy the ACCC’s concerns. 


I'rom Group (2372 JP): ACCC Tail Event Risk Is a Concern

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>The deal was announced in May and was expected to start in June 2024. In late June 2024, <a href="https://www.smartkarma.com/entities/i-rom-group-co-ltd" target="_blank" data-smartkarma-citation="entities:2686:1" rel="noopener">I'Rom Group (2372 JP)</a> provided an <a href="https://www.iromgroup.co.jp/wp-content/uploads/2024/06/20240620_2_578088.pdf" target="_blank" rel="noopener">update</a> suggesting a November 2024 start.</li>
<li>The delay was due to processes/approvals in Australia. In July we got an ACCC <a href="https://www.accc.gov.au/system/files/public-registers/documents/Blackstone%20I%27rom%20-%20Market%20Inquiries%20Letter.pdf?ref=0&amp;download=y" target="_blank" rel="noopener">Market Inquiries Letter</a> noting Blackstone indirectly owned a competing Phase I clinical trial service provider.</li>
<li>Today, ACCC <a href="https://www.accc.gov.au/media-release/blackstone%E2%80%99s-proposed-acquisition-of-i%E2%80%99rom-raises-concerns" target="_blank" rel="noopener">announced</a> a 12-page <a href="https://www.accc.gov.au/system/files/public-registers/documents/Blackstone%20I%27rom%20-%20Statement%20of%20Issues%20-%207%20November%202024.pdf?ref=0&amp;download=y" target="_blank" rel="noopener">Statement of Issues</a> regarding the takeover. </li>
</ul>


The deal was announced in May and was expected to start in June 2024. In late June 2024, I'Rom Group (2372 JP) provided an update suggesting a November 2024 start.
The delay was due to processes/approvals in Australia. In July we got an ACCC Market Inquiries Letter noting Blackstone indirectly owned a competing Phase I clinical trial service provider.
Today, ACCC announced a 12-page Statement of Issues regarding the takeover. 


Blackstone Deal for I'rom (2372 JP) May Be In Trouble, But I Doubt It

David Blennerhassett

<ul>
<li>I tally 48 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>Six new deals this week: <a href="https://www.smartkarma.com/entities/amcor-limited" target="_blank" data-smartkarma-citation="entities:674:1" rel="noopener">Amcor (AMC AU)</a>takes out <a href="https://www.smartkarma.com/entities/berry-global-group-inc" target="_blank" data-smartkarma-citation="entities:9428:1" rel="noopener">Berry Global (BERY US)</a>;<a href="https://www.smartkarma.com/entities/sayona-mining-ltd" target="_blank" data-smartkarma-citation="entities:1589:1" rel="noopener">Sayona (SYA AU)</a>and <a href="https://www.smartkarma.com/entities/piedmont-lithium-ltd" target="_blank" data-smartkarma-citation="entities:17619:1" rel="noopener">Piedmont (PLL AU)</a> merge; and <a href="https://www.smartkarma.com/entities/integrated-design-engineering-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:44096:1" rel="noopener">Integrated Design &amp; Engineering  (9161 JP)</a>'s TOB. </li>
<li>Key updates/news took place on: <a href="https://www.smartkarma.com/entities/arcadium-lithium-plc" target="_blank" data-smartkarma-citation="entities:40438:1" rel="noopener">Arcadium Lithium (LTM AU)</a>, <a href="https://www.smartkarma.com/entities/pacific-smiles-group-ltd" target="_blank" data-smartkarma-citation="entities:2891:1" rel="noopener">Pacific Smiles (PSQ AU)</a>, <a href="https://www.smartkarma.com/entities/hotel-property-investments" target="_blank" data-smartkarma-citation="entities:9850:1" rel="noopener">Hotel Property Investments (HPI AU)</a>, <a href="https://www.smartkarma.com/entities/hkbn-ltd" target="_blank" data-smartkarma-citation="entities:289:1" rel="noopener">HKBN (1310 HK)</a>, <a href="https://www.smartkarma.com/entities/xingda-international-holdings" target="_blank" data-smartkarma-citation="entities:17836:1" rel="noopener">Xingda International (1899 HK)</a>, and <a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a>.</li>
</ul>


I tally 48 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Six new deals this week: Amcor (AMC AU)takes out Berry Global (BERY US);Sayona (SYA AU)and Piedmont (PLL AU) merge; and Integrated Design &amp; Engineering  (9161 JP)'s TOB. 
Key updates/news took place on: Arcadium Lithium (LTM AU), Pacific Smiles (PSQ AU), Hotel Property Investments (HPI AU), HKBN (1310 HK), Xingda International (1899 HK), and Malaysia Airports Holdings (MAHB MK).


(Mostly) Asia-Pac M&A: Sayona/Piedmont, I D & E Holdings, Arcadium, Pacific Smiles, HKBN, MAHB

<ul>
<li>
<a href="https://www.smartkarma.com/entities/i-rom-group-co-ltd" target="_blank" data-smartkarma-citation="entities:2686:1" rel="noopener">I'Rom Group (2372 JP)</a> recommended a <a href="https://www.smartkarma.com/entities/blackstone-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone (BX US)</a>-sponsored pre-conditional MBO at JPY2,800, a 49.5% premium to the undisturbed price. </li>
<li>Approvals under the competition laws of Japan and Australia are a precondition. The tender offer is expected to start in mid-June.</li>
<li>The offer is attractive and requires a 37% minority acceptance rate. While the timing of regulatory approvals is a risk, the transaction is a done deal.</li>
</ul>



I'Rom Group (2372 JP) recommended a Blackstone (BX US)-sponsored pre-conditional MBO at JPY2,800, a 49.5% premium to the undisturbed price. 
Approvals under the competition laws of Japan and Australia are a precondition. The tender offer is expected to start in mid-June.
The offer is attractive and requires a 37% minority acceptance rate. While the timing of regulatory approvals is a risk, the transaction is a done deal.


I'rom Group (2372 JP): Blackstone-Sponsored Pre-Conditional MBO at JPY2,800

<ul>
<li>Today SMO and CRO operator <a href="https://www.smartkarma.com/entities/i-rom-group-co-ltd" target="_blank" data-smartkarma-citation="entities:2686:1" rel="noopener">I'Rom Group (2372 JP)</a> announced an MBO where Blackstone would be the sponsor.</li>
<li>From outward appearances, it would seem to be an estate management exercise. It's not particularly rich as a bid, but it isn't awful. </li>
<li>I expect this gets done as Mori-san and family and friends appear to have 58% going in. Expected to start in June.</li>
</ul>


Today SMO and CRO operator I'Rom Group (2372 JP) announced an MBO where Blackstone would be the sponsor.
From outward appearances, it would seem to be an estate management exercise. It's not particularly rich as a bid, but it isn't awful. 
I expect this gets done as Mori-san and family and friends appear to have 58% going in. Expected to start in June.


Blackstone to Take I'rom (2372 JP) Private in MBO at ¥2800/Share (49% Premium)

Japan

I'rom Group Co., Ltd. provides management services on clinical trials and staffing consulting services including providing nurses, pharmacists, and clinical pathologists to medical institutions as well as training medicalrelated staffs.  The Company also provides and leases facilities and finances for these who are to start their clinics.

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I'Rom Group (2372 JP)