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>
<a href="https://www.smartkarma.com/entities/tenma-corp" target="_blank" data-smartkarma-citation="entities:11900:1" rel="noopener">Tenma Corp (7958 JP)</a> has recommended an MBO tender offer at JPY3,580 per share, a 37.1% premium to the last close of JPY2,611.</li>
<li>Despite implying a P/B multiple of 0.89x, the offer is attractive compared to historical trading ranges and peer multiples and represents an all-time high. </li>
<li>An irrevocable from Dalton, the largest shareholder, lowers the risk of activist agitation. Given that the offer is reasonable, the required minority acceptance rate of 28.5% is attainable. </li>
</ul>



Tenma Corp (7958 JP) has recommended an MBO tender offer at JPY3,580 per share, a 37.1% premium to the last close of JPY2,611.
Despite implying a P/B multiple of 0.89x, the offer is attractive compared to historical trading ranges and peer multiples and represents an all-time high. 
An irrevocable from Dalton, the largest shareholder, lowers the risk of activist agitation. Given that the offer is reasonable, the required minority acceptance rate of 28.5% is attainable. 


Tenma Corp (7958 JP): MBO Tender Offer at JPY3,580

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Plastic household goods maker <a href="https://www.smartkarma.com/entities/tenma-corp" target="_blank" data-smartkarma-citation="entities:11900:1" rel="noopener">Tenma Corp (7958 JP)</a> has been "undervalued" for decades. A variety of activish/activist holders have come and gone. Dalton went substantial in 2016, is 18% now.</li>
<li>The family has always controlled the company, and in the last decade, the company has bought back shares, raising the family stake. Now they are buying out minorities. </li>
<li>The deal is at 4.1x Adjusted EV/EBITDA for March 2026 (adjusted for securities sales, etc) and 0.82x book for the non-cash/securities portion of the business. But Dalton has thrown in.</li>
</ul>


Plastic household goods maker Tenma Corp (7958 JP) has been "undervalued" for decades. A variety of activish/activist holders have come and gone. Dalton went substantial in 2016, is 18% now.
The family has always controlled the company, and in the last decade, the company has bought back shares, raising the family stake. Now they are buying out minorities. 
The deal is at 4.1x Adjusted EV/EBITDA for March 2026 (adjusted for securities sales, etc) and 0.82x book for the non-cash/securities portion of the business. But Dalton has thrown in.


Tenma (7958 JP) MBO at ¥3,580 - Finally (Wipes Brow), An Exit. ATH But Not Yet PBR1.

David Blennerhassett

<ul>
<li>I tally 58 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma.</li>
<li>Three news new deals discussed this week: <a href="https://www.smartkarma.com/entities/soundwill-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19318:1" rel="noopener">Soundwill Holdings (878 HK)</a>, <a href="https://www.smartkarma.com/entities/tenma-corp" target="_blank" data-smartkarma-citation="entities:11900:1" rel="noopener">Tenma Corp (7958 JP)</a>, and <a href="https://www.smartkarma.com/entities/naigai-trans-line-ltd" target="_blank" data-smartkarma-citation="entities:8938:1" rel="noopener">Naigai Trans Line (9384 JP)</a>.</li>
<li>Key updates/news took place on: <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>, <a href="https://www.smartkarma.com/entities/silk-logistics-holdings-limited" target="_blank" data-smartkarma-citation="entities:35733:1" rel="noopener">Silk Logistics (SLH AU)</a>, <a href="https://www.smartkarma.com/entities/esr-group-ltd" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Group (1821 HK)</a>, <a href="https://www.smartkarma.com/entities/proto-corp" target="_blank" data-smartkarma-citation="entities:2511:1" rel="noopener">Proto Corp (4298 JP)</a>, and <a href="https://www.smartkarma.com/entities/japfa-ltd" target="_blank" data-smartkarma-citation="entities:15597:1" rel="noopener">Japfa Ltd (JAP SP)</a>.</li>
</ul>


I tally 58 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma.
Three news new deals discussed this week: Soundwill Holdings (878 HK), Tenma Corp (7958 JP), and Naigai Trans Line (9384 JP).
Key updates/news took place on: Seven &amp; I Holdings (3382 JP), Silk Logistics (SLH AU), ESR Group (1821 HK), Proto Corp (4298 JP), and Japfa Ltd (JAP SP).


(Mostly) Asia-Pac M&A: Seven & I, ESR Group, Japfa, Soundwill Holdings, Tenma, Naigai Trans Line

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>My previous article discussed one of the reasons why scandal-ridden companies repeat scandals is because organizations tend to fall into "groupthink," where objectively strange decisions and judgments are sometimes made.</li>
<li>The AGM after the scandal of the alleged bribery of Tenma, which I discussed in this issue, led to a proxy fight, and there are still governance challenges.</li>
<li>This is the first time Tenma has held an analyst meeting, and there are a lot of challenges but there are signs of improvement in governance since the scandal.</li>
</ul>


My previous article discussed one of the reasons why scandal-ridden companies repeat scandals is because organizations tend to fall into "groupthink," where objectively strange decisions and judgments are sometimes made.
The AGM after the scandal of the alleged bribery of Tenma, which I discussed in this issue, led to a proxy fight, and there are still governance challenges.
This is the first time Tenma has held an analyst meeting, and there are a lot of challenges but there are signs of improvement in governance since the scandal.


Japan's Governance: Rebuilding from the Scandal and Holding the First-Ever Analyst Meeting: Tenma

Japan

TENMA CORPORATION manufactures and markets molded resin products.  The Company's products are used in housewares and industrial products such as automobile and electronic equipment.  Tenma has wholly-owned marketing subsidiaries in UK and China.

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Tenma Corp (7958 JP)