In today’s briefing:
- Nissin (9066) – Super Big Buyback Race-Walks the Governance Walk – Super Cheap Logistics Biz
- GAPack (468 HK): Mengniu & Bi Weigh Options On Shandong Xinjufeng’s VGO
- Great Eastern (GE SP): OCBC’s S$25.60 Unconditional Offer
- Eoflow Announced that US Federal Court Has Decided to Suspend the Effect of 1st Injunction Decision
- Nihon Housing (4781 JP) – A Very Tight Register Sees an MBO At All Time Highs
- EQD | KOSPI 200 Ready to Pullback
Nissin (9066) – Super Big Buyback Race-Walks the Governance Walk – Super Cheap Logistics Biz
- Yesterday after the close, Nissin Corp (9066 JP) announced earnings (down vs last year), guidance (back up partway to last year), and a sale of securities to raise ¥6+bn.
- Nissin also announced an employee share incentive plan (¥900mm) and an adjustment to its MTMP from Apr24 to Mar27. Much lower revenues. Same OP. Higher net. Higher Div Payout ratio.
- They also announced a really big buyback which should be done by the time people read this. It is really big.
GAPack (468 HK): Mengniu & Bi Weigh Options On Shandong Xinjufeng’s VGO
- Back in September 2023, Jardine Matheson Holdings (JM SP) sold its 28.22% stake in Greatview Aseptic Packaging (468 HK) to Shandong Xinjufeng Technology Packaging (301296 CH) (XJF).
- Then in November, XJF requisitioned an EGM to spill the board. At the EGM on the 26th January, not one of XJF’s five new proposed appointments were successful.
- XJF has now made a pre-conditional (various PRC approvals) voluntary general Offer at $2.65/share (best & final), contingent on a 50% acceptance hurdle. Final/special dividends to be added.
Great Eastern (GE SP): OCBC’s S$25.60 Unconditional Offer
- OCBC (OCBC SP) has made a voluntary unconditional general Offer for the 11.56% in Great Eastern Holdings (GE SP) not held.
- The S$25.60 cash Offer for the life/non-life insurer is a 36.9% premium to last close; and a 30% discount to its S$36.59/share embedded value (as at 31st Dec 2023).
- The Offer is unconditional in all respects. This will trade tight. A delisting Offer is next on the cards.
Eoflow Announced that US Federal Court Has Decided to Suspend the Effect of 1st Injunction Decision
- On 8 May, Eoflow announced that the U.S. federal court has decided to suspend the effect of the first injunction decision.
- While the effect of the second preliminary injunction decision remains intact, Eoflow has requested a review of the suspension of the effect of the second revised injunction decision as well.
- There has been a renewed optimism on Eoflow (294090 KS)’s share price in the past week which increased by 46% from 7 May to 10 May.
Nihon Housing (4781 JP) – A Very Tight Register Sees an MBO At All Time Highs
- Nihon Housing (4781 JP) is a business which manages real estate for owners (office, apartment management, janitorial, cleaning, facilities management, security, agency, sub-leasing package systems, etc).
- The company has operated in Tokyo for 60+yrs, and they are finally just going to take what has always been a tight register private. Foreigners own 0.05%. Index owns nothing.
- This is basically a completely done deal. It will trade tight, and illiquidly.
EQD | KOSPI 200 Ready to Pullback
- This is an update to our previous insight published on April 22nd: “EQD | KOSPI 200 WEEKLY Bounce: Rally or Not?“.
- The KOSPI 200 INDEX has performed a nearly +6% rally in the last 3 weeks, closing up 3 weeks in a row (CC=+3).
- We have something to say about this pattern that was identified 3 weeks and ago and so we wanted to post this insight to explicit our view.
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