Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

Event-Driven

Shares in <a href="https://www.smartkarma.com/entities/15756" target="_blank" data-smartkarma-citation="entities:15756:1">Taiyo Nippon Sanso</a> (TNS) gained ¥43 to ¥936 on the back on the <a href="https://www.smartkarma.com/entities/12781" target="_blank" data-smartkarma-citation="entities:12781:1">Mitsubishi Chemical</a> bid for <a href="https://www.smartkarma.com/entities/17597" target="_blank" data-smartkarma-citation="entities:17597:1">Nippon Syntheti</a>c. The situation is not dissimilar, but we would strike a note of caution on this one.As with Nippon Synthetic, Mitsubishi Chemical owns 51% of TNS, having sought, and acquired, an additional 24.03% of TNS on top of the 26.97% it already owned, in a tender announced 12th May 2014 and completed 5th November 2014.  However, anyone hoping for a takeover bid any time soon, may be…

Shares in Taiyo Nippon Sanso (TNS) gained ¥43 to ¥936 on the back on the Mitsubishi Chemical bid for Nippon Synthetic. The situation is not dissimilar, but we would strike a note of caution on this one.As with Nippon Synthetic, Mitsubishi Chemical owns 51% of TNS, having sought, and acquired, an additional 24.03% of TNS on top of the 26.97% it already owned, in a tender announced 12th May 2014 and completed 5th November 2014.  However, anyone hoping for a takeover bid any time soon, may be…

Taiyo Nippon Sanso - Next on Mitsubishi Chem's List? Possibly Not

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Friday August 5th after the close, <a href="https://www.smartkarma.com/entities/12781" target="_blank" data-smartkarma-citation="entities:12781:1">Mitsubishi Chemical Holdings (4188 JP)</a> (and its affiliates) <a href="http://www.m-kagaku.co.jp/english/newsreleases/pdf/00449/00511.pdf" target="_blank">announced</a> a Tender Offer to take private <a href="https://www.smartkarma.com/entities/17597" target="_blank" data-smartkarma-citation="entities:17597:1">Nippon Synthetic Chemical (4201 JP)</a> (also known as Nichigo (from its Japanese name of Nippon Gohsei)) by purchasing the all of the 48.5% of the shares outstanding that it does not already own (it owns 51.49% of the voting rights and 50.98% of shares outstanding) at ¥910/share, a 50% premium.  Nichigo issued a <a href="http://www.nichigo.co.jp/english/news/file/etk1608051.pdf" target="_blank">statement</a> that its Board of Directors had resolved to state an opinion supporting the tender offer. The deal is not "new" to them. Mitsubishi Chemical approached Nippon Synthetic Chemical with the offer in December 2015 and has been discussing the merits and the structural details since.  The announcement goes out of its way to show that it has been "fair" in its approach to minority shareholders through independent financial advisors' valuations, a third-party committee to evaluate the Offer, and making the Tender Offer longer than normal to 'secure an opportunity for Others to make any competing offers. It is nice to say but this is largely hogwash. That said, it is a very low-risk situation for investors. There is no minimum and no maximum on the number of shares to be purchased. Assuming that Mitsubishi Chemical can get to two-thirds, Nippon Synthetic Chemical will be delisted. Lots more details below the fold for subscribers...

Friday August 5th after the close, Mitsubishi Chemical Holdings (4188 JP) (and its affiliates) announced a Tender Offer to take private Nippon Synthetic Chemical (4201 JP) (also known as Nichigo (from its Japanese name of Nippon Gohsei)) by purchasing the all of the 48.5% of the shares outstanding that it does not already own (it owns 51.49% of the voting rights and 50.98% of shares outstanding) at ¥910/share, a 50% premium.  Nichigo issued a statement that its Board of Directors had resolved to state an opinion supporting the tender offer. The deal is not "new" to them. Mitsubishi Chemical approached Nippon Synthetic Chemical with the offer in December 2015 and has been discussing the merits and the structural details since.  The announcement goes out of its way to show that it has been "fair" in its approach to minority shareholders through independent financial advisors' valuations, a third-party committee to evaluate the Offer, and making the Tender Offer longer than normal to 'secure an opportunity for Others to make any competing offers. It is nice to say but this is largely hogwash. That said, it is a very low-risk situation for investors. There is no minimum and no maximum on the number of shares to be purchased. Assuming that Mitsubishi Chemical can get to two-thirds, Nippon Synthetic Chemical will be delisted. Lots more details below the fold for subscribers...

Japan

The Nippon Synthetic Chemical Industry Co., Ltd. produces and markets a wide range of chemical products.  The Company's products include polyvinyl alcohol and fine chemicals such as pharmaceuticals and agrochemicals.  Nippon Synthetic has sales offices in Southeast Asia, North America, and Europe.

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Nippon Synthetic Chemical (4201 JP)

Taiyo Nippon Sanso - Next on Mitsubishi Chem's List? Possibly Not

Shares in Taiyo Nippon Sanso (TNS) gained ¥43 to ¥936 on the back on the Mitsubishi Chemical bid for Nippon Synthetic. The situation is not...

Pelham Smithers Associates

Nippon Synthetic Chemical (4201) TOB

Friday August 5th after the close, Mitsubishi Chemical Holdings (4188 JP) (and its affiliates) announced a Tender Offer to take private Nippon...

Travis Lundy

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