In today’s briefing:
- Toshiba (6502 JP): JIP Lobs a Lower-Than-Expected Offer
- KLine (Kawasaki Kisen (9107)) – ToSTNeT-3 For All The Marbles
- Sunwoda Electronic GDR Listing – Better Track Record than Peers. Discount Also Inline with Average
Toshiba (6502 JP): JIP Lobs a Lower-Than-Expected Offer
- The Nikkei Asia reports that JIP has submitted a formal proposal to privatise Toshiba Corp (6502 JP) for about JPY2.2 trillion (US$15 billion) based on “Toshiba’s current share price.”
- JIP’s offer is below expectations of around a JPY6,000 bid which is likely driven by the inability to secure sufficient debt financing. JIP remains in negotiations with banks.
- While there is a risk that JIP will be unable to improve its offer to secure Board approval, the downside is low as Toshiba/peers’ current price ratio is attractive.
KLine (Kawasaki Kisen (9107)) – ToSTNeT-3 For All The Marbles
- On Thursday, Kawasaki Kisen Kaisha (9107 JP) announced earnings, lower-than-consensus guidance and a ¥100bn buyback via ToSTNeT-3 this week, and on market if not filled via ToSTNeT-3.
- The stock fell 5+%. I wrote I thought it was a buy and that the buyback was “game-able.” It rose 10+% from then til now.
- That was the fun. Now we get the games. Positioning strategy matters.
Sunwoda Electronic GDR Listing – Better Track Record than Peers. Discount Also Inline with Average
- Sunwoda Electronic Co Ltd A (300207 CH) is looking to raise around US$300m in its Swiss GDR listing. Bookrunners on the deal are GS and UBS.
- The firm is offering 19.6m GDRs (1 GDR to 5 A-shares) for sale at a 12.3-16.1% discount to last close.
- The deal would represent 3.4 days of three month ADV and 4.8% of the firm’s current mcap.
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