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 31 October, in response to an FT article, <a href="https://www.smartkarma.com/entities/fujitec-co-ltd" target="_blank" data-smartkarma-citation="entities:11686:1" rel="noopener">Fujitec Co Ltd (6406 JP)</a> confirmed that it has received a preliminary non-binding proposal, which the special committee is reviewing.</li>
<li>Fujitec’s shareholder register and relative underperformance compared to its Japanese peers make it ripe for a bid. Potential bidders could include PE and trade buyers.</li>
<li>The TK Elevator takeout multiple would imply a Fujitec offer price of JPY6,100-7,500, a 10.2%-35.6% premium to the last close of JPY5,533.</li>
</ul>


On 31 October, in response to an FT article, Fujitec Co Ltd (6406 JP) confirmed that it has received a preliminary non-binding proposal, which the special committee is reviewing.
Fujitec’s shareholder register and relative underperformance compared to its Japanese peers make it ripe for a bid. Potential bidders could include PE and trade buyers.
The TK Elevator takeout multiple would imply a Fujitec offer price of JPY6,100-7,500, a 10.2%-35.6% premium to the last close of JPY5,533.


Fujitec (6406 JP): Evaluating a Potential Privatisation

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>On 30 October, an FT <a href="https://www.ft.com/content/d237189f-d372-474d-981e-c1d3b32c3c8c" target="_blank" rel="noopener">article</a> appeared which pushed <a href="https://www.smartkarma.com/entities/fujitec-co-ltd" target="_blank" data-smartkarma-citation="entities:11686:1" rel="noopener">Fujitec Co Ltd (6406 JP)</a> shares sharply higher. The headline? <em>"Japanese lift maker Fujitec explores sale to private equity"</em>
</li>
<li>The next day, mid-day, Fujitec "<a href="https://www.fujitec.com/uploads/2024/10/241031_hodo_en.pdf" target="_blank" rel="noopener">corrected</a>" the record, saying the articles (FT and others, presumably) contained "inaccuracies", including that "Fujitec is working to find a buyer."</li>
<li>They mention they have received a preliminary and non-binding initial proposal. The stock continued higher after that. Now investors have to decide how attractive an elevator/escalator business really is.</li>
</ul>


On 30 October, an FT article appeared which pushed Fujitec Co Ltd (6406 JP) shares sharply higher. The headline? "Japanese lift maker Fujitec explores sale to private equity"

The next day, mid-day, Fujitec "corrected" the record, saying the articles (FT and others, presumably) contained "inaccuracies", including that "Fujitec is working to find a buyer."
They mention they have received a preliminary and non-binding initial proposal. The stock continued higher after that. Now investors have to decide how attractive an elevator/escalator business really is.


<ul>
<li>At the <a href="https://www.smartkarma.com/entities/fujitec-co-ltd" target="_blank" data-smartkarma-citation="entities:11686:1" rel="noopener">Fujitec Co Ltd (6406 JP)</a> EGM, Oasis successfully secured approval for four out of six candidates for outside directors. The tight vote shows that shareholders desire change.</li>
<li>Oasis fell short of its nominations constituting up to two-thirds of the Board. However, Oasis-aligned directors will represent 67% of outside directors which still can drive meaningful change.</li>
<li>The EGM results will spur optimism that Fujitec can close the performance gap with peers, resulting in a rerating. Fujitec remains attractive on a cash-adjusted P/E basis.    </li>
</ul>


At the Fujitec Co Ltd (6406 JP) EGM, Oasis successfully secured approval for four out of six candidates for outside directors. The tight vote shows that shareholders desire change.
Oasis fell short of its nominations constituting up to two-thirds of the Board. However, Oasis-aligned directors will represent 67% of outside directors which still can drive meaningful change.
The EGM results will spur optimism that Fujitec can close the performance gap with peers, resulting in a rerating. Fujitec remains attractive on a cash-adjusted P/E basis.    


Fujitec (6406 JP): Oasis Scores a Victory in a Tight EGM Vote

<ul>
<li>Oasis proposals to restructure the <a href="https://www.smartkarma.com/entities/fujitec-co-ltd" target="_blank" data-smartkarma-citation="entities:11686:1" rel="noopener">Fujitec Co Ltd (6406 JP)</a> Board which will be voted on at the 24 February EGM have got independent proxy advisor, ISS, support.</li>
<li>An Oasis win would renew enthusiasm that Fujitec can close the performance gap with peers, resulting in a catalyst for the rerating of the shares.</li>
<li>An Oasis loss is not disastrous as Oasis could come back or Fujitec would likely offer a premium to buyout Oasis. Fujitec is also cheap on a cash-adjusted P/E basis.</li>
</ul>


Oasis proposals to restructure the Fujitec Co Ltd (6406 JP) Board which will be voted on at the 24 February EGM have got independent proxy advisor, ISS, support.
An Oasis win would renew enthusiasm that Fujitec can close the performance gap with peers, resulting in a catalyst for the rerating of the shares.
An Oasis loss is not disastrous as Oasis could come back or Fujitec would likely offer a premium to buyout Oasis. Fujitec is also cheap on a cash-adjusted P/E basis.


Fujitec (6406 JP): Oasis’ Activism Comes to a Head of the 24 February EGM

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

<ul>
<li>The annual index changes for the EURO STOXX 50 Index were announced yesterday. </li>
<li>There will be two ADDs and two DELs. Collectively, the ADDs could see index inflows of ~US$2.15bn while the DELs could experience index outflows of ~US$1.05bn.</li>
<li>In this insight, we take a closer look at the index flow expectations, historical performance of EURO STOXX 50 Rebal events, and recent performance of the current index change names.</li>
</ul>


The annual index changes for the EURO STOXX 50 Index were announced yesterday. 
There will be two ADDs and two DELs. Collectively, the ADDs could see index inflows of ~US$2.15bn while the DELs could experience index outflows of ~US$1.05bn.
In this insight, we take a closer look at the index flow expectations, historical performance of EURO STOXX 50 Rebal events, and recent performance of the current index change names.


EURO STOXX 50 Sep 22 Rebal: Massive Flows for Nordea Bank, Nokia, Kone, & Philips

Finland

Kone Oyj provides solutions for the installation, maintenance, and modernization of elevators and escalators and the maintenance of automatic building doors.

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Kone OYJ (KNEBV FH)

Fujitec (6406 JP): Evaluating a Potential Privatisation

Fujitec is evaluating a preliminary non-binding proposal. Fujitec’s shareholder register makes it ripe for a bid. Potential bidders could include...

Arun George

Fujitec (6406 JP) - On the Block?

Fujitec may be on the block. An FT article suggests the company is talking to PE firms (wholly unsurprising) and the firm's "clarification" says a...

Travis Lundy

Fujitec (6406 JP): Oasis Scores a Victory in a Tight EGM Vote

The EGM results will spur optimism that the newly constructed Board can close the performance gap with peers, resulting in a rerating. Fujitec...

Arun George

Fujitec (6406 JP): Oasis’ Activism Comes to a Head of the 24 February EGM

Fujitec is trading at an undemanding cash-adjusted P/E multiple. This provides downside protection should Oasis prove unsuccessful at the upcoming...

Arun George

EURO STOXX 50 Sep 22 Rebal: Massive Flows for Nordea Bank, Nokia, Kone, & Philips

The Long ADDs Short DELETEs trade seems interesting because the average impact on both size is significant and incoming momentum is strong.

Janaghan Jeyakumar, CFA

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