In today’s briefing:
- JAPAN ACTIVISM: Silchester and Bank of Kyoto (8369) Redux
- Deutsche Bank/Numis Corporation: Acquiring Deal Flow
JAPAN ACTIVISM: Silchester and Bank of Kyoto (8369) Redux
- Last year, Silchester International Investors wrote a series of letters to Bank of Kyoto management and then asked to put items on the AGM agenda. It lost.
- A Bloomberg article last week suggests Silchester will ask for a ¥62 special div and a ¥5bn buyback this year. The Silchester letter is “due” by 30 April.
- The Bank has already delivered most of the ask this year (¥3bn in upped div, and ¥5bn in buybacks). Silchester will lose. Expect no Conversion on the Road to Kasumigaseki.
Deutsche Bank/Numis Corporation: Acquiring Deal Flow
- In a back to the 90’s, Deustche seeks to acquire UK corporate stockbroker Numis for a 350p/share package (72% premium, 2.1x P/BVPS, 15.5x on a smoothed-out P/E) via scheme of arrangement.
- The deal should bring deal flow to Deutsche Bank’s UK business. Mifid II may spark more consolidation across UK brokers. Readacross: Peel Hunt Ltd/Guernsey (PEEL LN) could become a target.
- Irrevocables are 27.2%. There’s no arguing with the premium and the deal should close. Spread is 2.63%/c. 4.93% (gross/annualised, assuming for simplicity all payments at settlement, around 15 November). Long.
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