In today’s briefing:
- [JAPAN ACTIVISM] Keisei Elec (9009) – Murakami Stake Causes Pop But the Oppty Is Still Unconvincing
- Oriental Land ToSTNeT-3 Buyback From Keisei (9009) – It’s In the Plan And Looks Better Than It Is
- SF Holdings A/H Trading – Strong Demand but Is Probably Close to Fair Value
- MNC Solutions Pre-IPO – Thoughts on Valuation – Defensively, Would Ideally like a Further Discount
- Aegis Vopak Terminals Pre-IPO Tearsheet
- Company Spotlight: ISDN
[JAPAN ACTIVISM] Keisei Elec (9009) – Murakami Stake Causes Pop But the Oppty Is Still Unconvincing
- 13mos ago, activist investor Palliser Capital spoke at a conference about the value offered by Keisei Electric Railway Co (9009 JP) due to its large stake in Oriental Land (4661).
- Keisei outperformed OLC by 30% over 3.5mos. Then it fell all the way back, and more, over the next five months. Asset sale, buyback, AGM proposals. Meh.
- Nov 25th, Toyo Keizai wrote activist Murakami-san had acquired stakes of <5% in Keikyu Corp (9006 JP) and <1% in Keisei Electric Railway Co (9009 JP). Shares in both jumped.
Oriental Land ToSTNeT-3 Buyback From Keisei (9009) – It’s In the Plan And Looks Better Than It Is
- In October 2023 and then in early 2024, activist Palliser Capital demanded that Keisei Electric Railway Co (9009 JP) sell down its stake in Oriental Land (4661 JP) to sub-15%.
- Keisei in March sold 1% of OLC but in doing so, rejected the concept of removing equity affiliate status. They could go to a level just >15%, or just >20%.
- Today, OLC announced a ToSTNeT-3 buyback of 18mm shares – the total for the 2yrs to Mar-26 announced (p19) in April. Keisei will sell and will stay above 20%.
SF Holdings A/H Trading – Strong Demand but Is Probably Close to Fair Value
- S.F. Holding (002352 CH), China’s largest express delivery company, raised around US$860m in its H-share listing in Hong Kong.
- SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
- We have covered the company and deal background in our previous notes. In this note, we talk about the trading dynamics.
MNC Solutions Pre-IPO – Thoughts on Valuation – Defensively, Would Ideally like a Further Discount
- MNC Solution (MNC KS) is looking to raise US$200m in its Korea IPO.
- MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
- In our previous note, we looked at the firm’s past performance and undertook a peer comparison. In this note, we discuss our thoughts on valuation.
Aegis Vopak Terminals Pre-IPO Tearsheet
- Aegis Vopak Terminals Ltd (1902844D IN) is looking to raise upto US$415m in its upcoming India IPO. The deal will be run by ICICI, IIFL, Jefferies, HDFC and BNP Paribas.
- It is a joint-venture between Aegis Logistics, India’s largest third-party LPG handler and Vopak India BV, part of Royal Vopak, one of world’s leading tank storage companies, according to CRISIL.
- AVTL was the largest Indian third-party owner and operator of tank storage terminals for LPG, liquid products in terms of storage capacity, as of June 30, 2024, as per CRISIL.
Company Spotlight: ISDN
Company Spotlight: ISDN
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