In today’s briefing:
- Fuji Soft (9749 JP) – The Fine Print Is Worth Reading
- Shinko Electric (6967 JP) Takeover – THIS Is a Dip to Buy
- Tokyo Metro (9023 JP) IPO: Trading Debut
- Human Capital Initiatives Can Also Be Viewed as Part of Such Autonomous “kaizen” Activities
- Tokyo Metro IPO Trading – Robust Demand for Quality Asset
Fuji Soft (9749 JP) – The Fine Print Is Worth Reading
- On 11-Oct, Bain submitted a binding proposal for Fuji Soft Inc (9749 JP). On 15-Oct, FSI acknowledged, but questioned the Nozawa family commitment. Founder Nozawa wrote letters the 17th.
- O 18-Oct, FSI reiterated support for the KKR First Tender in a late night drop. It included fine print, but no media coverage. Today, FSI filed a Target Opinion Amendment.
- That filing included yet more fine print not in the public filing Friday. And KKR extended. The new fine print is nuanced. But worth reading.
Shinko Electric (6967 JP) Takeover – THIS Is a Dip to Buy
- Over the last few days, Shinko Electric Industries (6967 JP) shares have dipped lower than the previous standard trading range.
- I expect this weakness is related to investors in other deals deciding to sell this deal too. I believe it is not related to Shinko specifically.
- For that, while gap risk remains somewhat high, I still see break risk as low and see this as a great opportunity to buy the dip.
Tokyo Metro (9023 JP) IPO: Trading Debut
- Tokyo Metro (9023 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$2.3 billion. The shares will start trading on 23 October.
- We previously discussed the IPO in Tokyo Metro (9023 JP) IPO: The Bull Case, Tokyo Metro (9023 JP) IPO: The Bear Case and Tokyo Metro (9023 JP) IPO: Valuation Insights.
- The peers have modestly derated since the prospectus was released on 20 September. The IPO price remains attractive, particularly relating to the implied dividend yield.
Human Capital Initiatives Can Also Be Viewed as Part of Such Autonomous “kaizen” Activities
- A year after human capital disclosure became mandatory, little progress was made, but few companies, even those in top 100 in market capitalization, have self-assessed their milestones and actual progress.
- While it was favored that companies with higher scores on human capital disclosure outperformed in stock price, it is reasonable to assume that multiple other factors had an impact.
- Some companies formulated growth strategies by presenting clear cash/capital allocations and have actually achieved improved capital profitability. Human capital initiatives can be viewed as part of such autonomous “kaizen” activities.
Tokyo Metro IPO Trading – Robust Demand for Quality Asset
- Tokyo Metro (9023 JP)‘s shareholders raised around US$2.4bn in its Japan IPO.
- Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
- We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.
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