Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Tatsuta Electric Wire & Cable / Event-Driven

<ul>
<li>Several weeks ago, <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> launched its long-delayed Tender Offer for <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> with no bump despite the time value of money. </li>
<li>It said the price reflected Tatsuta's value sufficiently. A week ago on the 19th, ENEOS extended the Tender Offer, likely because they didn't have the shares. Price was still "sufficient."</li>
<li>I suggested it might not be; I didn't expect a big bump, but caveated earnings. Friday produced great Q1 earnings, and a bump from ¥720/share to ¥780/share. </li>
</ul>


Several weeks ago, ENEOS Holdings (5020 JP) launched its long-delayed Tender Offer for Tatsuta Electric Wire &amp; Cable (5809 JP) with no bump despite the time value of money. 
It said the price reflected Tatsuta's value sufficiently. A week ago on the 19th, ENEOS extended the Tender Offer, likely because they didn't have the shares. Price was still "sufficient."
I suggested it might not be; I didn't expect a big bump, but caveated earnings. Friday produced great Q1 earnings, and a bump from ¥720/share to ¥780/share. 


ENEOS Bumps Tatsuta Elec (5809) Bid - 8.3% Bump Matches 8.7% Rise in BVPS Since Announcement

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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<ul>
<li>
<a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> has increased the <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> tender offer price by 8.3% to JPY780 and extended the offer period to 19 August.</li>
<li>Eneos tried to get the required acceptances by refusing to bump and subsequently extending the offer period. The tactics failed as minorities required a bump due to the market re-rating. </li>
<li>While the revised offer remains light, the token bump and deal fatigue should suffice to nudge the marginal vote to accept. At the last close, the gross/annualised spread was 5.0%/85.8%.</li>
</ul>



ENEOS Holdings (5020 JP) has increased the Tatsuta Electric Wire &amp; Cable (5809 JP) tender offer price by 8.3% to JPY780 and extended the offer period to 19 August.
Eneos tried to get the required acceptances by refusing to bump and subsequently extending the offer period. The tactics failed as minorities required a bump due to the market re-rating. 
While the revised offer remains light, the token bump and deal fatigue should suffice to nudge the marginal vote to accept. At the last close, the gross/annualised spread was 5.0%/85.8%.


Tatsuta Electric (5809 JP): Eneos Returns with a Token Bump to JPY780

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> announced its deal for affiliate <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> 18-plus months ago. China approvals held it up more than a year.</li>
<li>Last month, they launched. The sector was up a lot. TOPIX was up a lot. The stock had recently been trading through terms. But ENEOS didn't bump the price.</li>
<li>A month later, and the tender was supposed to have closed Friday 19 July. It didn't. ENEOS extended, for no reason, which suggests they don't have the shares. </li>
</ul>



ENEOS Holdings (5020 JP) announced its deal for affiliate Tatsuta Electric Wire &amp; Cable (5809 JP) 18-plus months ago. China approvals held it up more than a year.
Last month, they launched. The sector was up a lot. TOPIX was up a lot. The stock had recently been trading through terms. But ENEOS didn't bump the price.
A month later, and the tender was supposed to have closed Friday 19 July. It didn't. ENEOS extended, for no reason, which suggests they don't have the shares. 


ENEOS Extends Tatsuta Electric (5809) Tender Offer Means They Don't Have The Shares

<ul>
<li>18 months after announcing the offer, <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> launched the <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> tender offer at unchanged JPY720, 4.9% below the last close price.  </li>
<li>The Board requested a bump, but Eneos refused due to Tatsuta’s missed targets, no competing offer and the supportive updated IFA valuation</li>
<li>The lack of a bump, no vocal opposition, deal fatigue, the Board’s unexpected recommendation, weak earnings and 73.9% takeover premium will help acceptance.</li>
</ul>


18 months after announcing the offer, ENEOS Holdings (5020 JP) launched the Tatsuta Electric Wire &amp; Cable (5809 JP) tender offer at unchanged JPY720, 4.9% below the last close price.  
The Board requested a bump, but Eneos refused due to Tatsuta’s missed targets, no competing offer and the supportive updated IFA valuation
The lack of a bump, no vocal opposition, deal fatigue, the Board’s unexpected recommendation, weak earnings and 73.9% takeover premium will help acceptance.


Tatsuta Electric (5809 JP): Eneos Refuses to Bump, Board Capitulates

<ul>
<li>ENEOS announced its deal for <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> 18mos ago. China approval took a while. Now they have launched. </li>
<li>The TOPIX Non-Ferrous Metals sector has returned 60%. TOPIX 50%. There is a new TSE Sheriff in town asking for PBR 1.0x. BVPS is up. Presumably, forward CF is up.</li>
<li>But the TOB Price is unchanged. That is disappointing. One reason why a higher price was rejected was that no other buyer approached to take over the company. 🤷🏻‍♂️</li>
</ul>


ENEOS announced its deal for Tatsuta Electric Wire &amp; Cable (5809 JP) 18mos ago. China approval took a while. Now they have launched. 
The TOPIX Non-Ferrous Metals sector has returned 60%. TOPIX 50%. There is a new TSE Sheriff in town asking for PBR 1.0x. BVPS is up. Presumably, forward CF is up.
But the TOB Price is unchanged. That is disappointing. One reason why a higher price was rejected was that no other buyer approached to take over the company. 🤷🏻‍♂️


ENEOS Launches Tatsuta Elec (5809) "Minority" Takeout at Same Price as 18mos Ago

Japan

TATSUTA ELECTRIC WIRE AND CABLE CO., LTD. manufactures wires and cables. The Company's products include power cables, optic fiber cables and its related devices, bonding wires, and water leakage detection systems.  Tatsuta Wire & Cable also produces environmentally friendly cables.

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Tatsuta Electric Wire & Cable (5809 JP)

ENEOS Bumps Tatsuta Elec (5809) Bid - 8.3% Bump Matches 8.7% Rise in BVPS Since Announcement

ENEOS has bumped its Tatsuta bid to ¥780/share, rewarding shareholders who kept their shares back. This matches the BVPS increase since late 2022....

Travis Lundy

Tatsuta Electric (5809 JP): Eneos Returns with a Token Bump to JPY780

While the revised offer remains light, the token bump and deal fatigue should suffice to nudge the marginal vote to accept. At the last close, the...

Arun George

ENEOS Extends Tatsuta Electric (5809) Tender Offer Means They Don't Have The Shares

ENEOS extends the Tatsuta Electric TOB. No technicality, suggesting they do not have the shares. But they say they aren't raising price. Maybe they...

Travis Lundy

Tatsuta Electric (5809 JP): Eneos Refuses to Bump, Board Capitulates

The lack of a bump, no vocal opposition, deal fatigue, the Board’s unexpected recommendation, weak earnings and 73.9% takeover premium will help...

Arun George

ENEOS Launches Tatsuta Elec (5809) "Minority" Takeout at Same Price as 18mos Ago

ENEOS has launched its TOB for the rest of Tatsuta Electric at ¥720/share - the same price as it announced 18mos ago. Passage of time? Sector...

Travis Lundy

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