In today’s briefing:
- Nojima (7419) Launches Buyout of Conexio (9422)
- JAFCO (8595 JP): Murakami Gets His Way with a JPY2,500 Tender Offer
- Conexio Corporation (9422 JP) JPY1,911 Tender Offer from Nojima
Nojima (7419) Launches Buyout of Conexio (9422)
- Nojima Corp (7419 JP) is buying out Conexio Corp (9422 JP) majority owner Itochu Corp (8001 JP) along with minorities. At a 59% premium, it looks good.
- However, in terms of normalised EV/EBITDA or EV/FCF multiple, this is not expensive.
- And while the major seller/target and friendlies are oh so close, the register is more interesting than the yuho top 10 shareholder list suggests.
JAFCO (8595 JP): Murakami Gets His Way with a JPY2,500 Tender Offer
- Jafco Co Ltd (8595 JP) and Murakami have reached an agreement on a revised tender offer for 16.8 million shares (23.60% of outstanding shares) at JPY2,500 per share.
- The revised tender offer’s primary purpose remains to facilitate Murakami to tender his 19.53% shareholding at the expense of other shareholders and the misallocation of JPY42 billion (tender cost).
- The justification for the transaction is weak as most of the benefits could have been achieved without it. This calls into question the Board’s ability to enhance value.
Conexio Corporation (9422 JP) JPY1,911 Tender Offer from Nojima
- Conexio Corp (9422 JP) has recommended Nojima Corp (7419 JP)’s tender offer of JPY1,911 per share, an 59.1% premium to the undisturbed price (22 December).
- The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
- The tender offer was set in motion due to Itochu Corp (8001 JP)’s desire to exit. Itochu tendering its 60.34% stake and an attractive offer, suggests a done deal.
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