In today’s briefing:
- Toshiba (6502) – Funding Secured!
- Toshiba (6502 JP): Securing Financing Helps Sentiment but Hurdles Remain
- IRCTC OFS – Well Flagged Deal for an Overly Well Priced Stock
- Emerson Electric Co.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Emerson Electric Co.: Initiation of Coverage – Recent Divestments & Other Drivers
- Carrier Global Corporation: Initiation of Coverage – Acquisition Of Toshiba’s HVAC Business & Other Drivers
Toshiba (6502) – Funding Secured!
- A Nikkei article today suggests FUNDING SECURED for JIP’s deal for Toshiba Corp (6502 JP). Noises 2wks ago suggested this timing for a deal, but there are no terms yet.
- The syndicate, led by SMBC and Mizuho, “has agreed to ¥1.2trln in loans.” The two leads take two-thirds but details suggest not all is as smooth as the headline suggests.
- The remaining questions are whether the major holders will take the bait at that price, and/or whether JIC would come in over the top. I expect yes to the first.
Toshiba (6502 JP): Securing Financing Helps Sentiment but Hurdles Remain
- The Nikkei reports that Japan Industrial Partners (JIP), the preferred bidder, has secured bank financing of around JPY1.2 trillion (US$8.8 billion), conditional on Toshiba Corp (6502 JP) selling some businesses.
- JIP will table an offer valuing Toshiba at JPY2.2 trillion (US$16 billion). The special committee is assessing the proposal and a final decision will be made at a board meeting.
- JIP’s next challenge is getting the committee to recommend the offer. While a potential offer of JPY5,100 is not terrible, it is well below the original bid expectation of JPY6,000.
IRCTC OFS – Well Flagged Deal for an Overly Well Priced Stock
- Government of India (GoI) aims to raise up to US$360m via selling its 5% stake in Indian Railway Catering and Tourism (IRCTC IN).
- This is not the first selldown by GoI and won’t be the last either. However, the stock now looks more expensive than ever.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Emerson Electric Co.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Emerson Electric is a well-known engineering company catering to clients in the industrial, commercial, and consumer markets.
- It continues to see growth potential in the life sciences sector thanks to continued investment in creating new drugs, vaccines, and medications.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Emerson Electric Co.: Initiation of Coverage – Recent Divestments & Other Drivers
- This is our first report on engineering major, Emerson Electric.
- The company had a strong finish to the fiscal year 2022, with sales increasing by 9% surpassing Wall Street expectations.
- We initiate coverage on the stock of Emerson Electric with a ‘Hold’ rating.
Carrier Global Corporation: Initiation of Coverage – Acquisition Of Toshiba’s HVAC Business & Other Drivers
- This is our first report on global HVAC major, Carrier Global Corporation.
- On the heels of the continued traction on pricing, Carrier delivered quite high organic sales growth in the quarter, and importantly, it continues delivering double-digit aftermarket organic growth.
- Among other major updates, the company completed the acquisition of the global light commercial and residential HVAC business of Toshiba.
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