In today’s briefing:
- JMDC (4483) Partial Offer Results – Tough Tender, I’d Watch For “THE Block” (Maybe)
- EOFlow’s Suspension Is Not (All) Negative
- Eoflow: Temporary Trading Suspension
- EOFLOW/Medtronic Tender: On Life Support
- POSCO DX (022100 KS): Index Impact of KOSDAQ to KOSPI Transfer
- A Noteworthy ETF Flow Trading Opportunity Targeting the Pair Comprising Kia & Posco Future M
- Estia Health (EHE AU): Scheme Meeting on 15 November
JMDC (4483) Partial Offer Results – Tough Tender, I’d Watch For “THE Block” (Maybe)
- Results for the Omron Corp (6645 JP) Partial Tender Offer for JMDC (4483 JP) are out.
- The Pro-Ration was 51.63%, at the lower end of my initial estimate of 50-58% range, and at the higher end of my revised range (42-56%).
- The pro-ration, the nature of the shapes (technical term) tendered, and what that suggests for Noritsu Koki’s position suggests the back end could be more squeezy than not.
EOFlow’s Suspension Is Not (All) Negative
- On the 6th of October, a US district court judge entered a preliminary injunction (PI) against EOFlow (294090 KS), pending a trial. This development should have been expected.
- Less expected was the suspension of EOFlow shares today, and the cessation of sales globally.
- The latter measure appears extreme, noting the PI addresses only sales in the US, which EOFlow is not permitted anyway, without FDA approval. There’s clearly more than meets the eye.
Eoflow: Temporary Trading Suspension
- On 10 October, the Korea Exchange announced a temporary suspension of trading of Eoflow (294090 KS) shares starting 11 October.
- Eoflow decided at its board of directors meeting the previous day (10th) to suspend production and sales of Eoflow patches until the outcome of the lawsuit is resolved.
- In this insight, we provide various scenario analysis including the worst case, best case, and in-between cases of the Eoflow M&A tender offer process.
EOFLOW/Medtronic Tender: On Life Support
- In reaction to the preliminary injunction, Eoflow (294090 KS) shares were suspended as it is reviewing whether it is subject to a substantive review for KOSDAQ listing eligibility.
- Medtronic Plc (MDT US) is in an unprecedented situation of potentially acquiring a company whose shares are suspended, has a preliminary injunction against it and exposure to possible liabilities.
- Medtronic could have prevented this development by reaffirming its commitment to the deal. The transaction is on increasingly shaky grounds, which is reflected in the 38.2% gross spread.
POSCO DX (022100 KS): Index Impact of KOSDAQ to KOSPI Transfer
- Posco DX (022100 KS) has applied to the KRX for a transfer from the KOSDAQ market to the KOSPI market.
- Based on history, the approval for the transfer and the listing change could take place in the next two months.
- That means a deletion from the KOSDAQ 150 Index (KOSDQ150 INDEX) and inclusion in the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX). But the timeline is important.
A Noteworthy ETF Flow Trading Opportunity Targeting the Pair Comprising Kia & Posco Future M
- Kia is set to make a comeback, while the exclusion of Posco Future M is on the horizon.
- The screening date is set for November 30th, and the effective date is December 18th, which means the ETF rebalancing will take place on December 15th.
- The exposure period to the market is relatively short, so it’s essential to acknowledge the limited accumulation of learning effects. This suggests we can anticipate a notably substantial price impact.
Estia Health (EHE AU): Scheme Meeting on 15 November
- The Estia Health (EHE AU) IE considers Bain’s A$3.20 (A$3.08 excluding paid dividends) offer fair and reasonable as it is above its valuation range of $2.83 to A$3.21 per share.
- The offer is subject to FIRB and possibly aged care industry approvals. The MAC clause risk, particularly around material regulatory events, is diminishing.
- This is a done deal. At the last close price and for the 30 November payment, the gross and annualised spread is 1.3% and 9.7%, respectively.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
