In today’s briefing:
- IPet Holdings (7339 JP) – Tender Offer Extended But No Biggie
- Dream Incubator (4310 JP) – An Interesting Exit and Attractive Valuation for Future Growth
- CIFI Holdings Placement – Won’t Do Much to Alleviate Debt Profile. Latest Deal Underwater
- Binance Volume Recovers Despite Mass Outflows
IPet Holdings (7339 JP) – Tender Offer Extended But No Biggie
- On 8 November, major Japanese life insurer Dai Ichi Life Insurance (8750 JP) announced it would buy out leading pet insurer ipet Holdings (7339 JP). Yes, you read that right.
- Japanese listed VC/PE firm and incubator Dream Incubator Inc (4310 JP) owns 55% and agreed to tender. Tender success is dependent on getting 66.7%.
- Today the buyer extended for 10 days because it had received approval under Article 271-22 Para 1 of the Insurance Business Act, triggering a requirement to refile/extend.
Dream Incubator (4310 JP) – An Interesting Exit and Attractive Valuation for Future Growth
- In early November, Dai Ichi Life Insurance (8750 JP) announced it would buy ipet Holdings (7339 JP), of which listed VC/PE/incubator Dream Incubator (4310 JP) owned 55%. DI agreed.
- Dream Incubator’s exit is worth ¥21.54bn in cash and ¥18.2bn in extraordinary gains on the consolidated financial statements for March 2023.
- That is nice. They have promised to deliver ¥10bn of proceeds to shareholders and reinvest the other ¥5bn to grow their consulting business. It’s a nice little asset.
CIFI Holdings Placement – Won’t Do Much to Alleviate Debt Profile. Latest Deal Underwater
- CIFI Holdings (884 HK) is looking to raise US$127m in a top-up placement. Proceeds from the raising are expected to refinance its existing loans and for general corporate purposes.
- While the deal represents just 2.1 days of three month ADV, total shares offered would amount to 7.5% of current mcap.
- In this note, we will run the deal through our ECM framework and talk about the recent updates.
Binance Volume Recovers Despite Mass Outflows
- Price Movements: Binance’s BUSD stablecoin, BNB token, and staking token bETH have had a volatile week amid mass withdrawals.
- Market Liquidity: Throughout December, BTC market depth on Coinbase has increased 46% while on Binance, depth is down 5%.
- Derivatives: Open interest for BTC and ETH perpetual futures has nearly halved since November.
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