In today’s briefing:
- Bain Bids Bigger, Goes Hard on Fuji Soft (9749); I’ve Got 🍿🍿🍿
- Fuji Soft (9749 JP): Bain’s Better Late than Never Competing Offer
- ECM Weekly (14th Oct 2024) – Tokyo Metro, Rigaku, Hyundai, China Res, Swiggy, USS, Akeso, Shiyue
- After TSE’s Request, the Key Is Whether the Company Can Deliver While Investors Are Still Hopeful
- Shionogi & Co (4507 JP): Performance to Improve in H2; Upcoming Drugs to Accelerate Growth
Bain Bids Bigger, Goes Hard on Fuji Soft (9749); I’ve Got 🍿🍿🍿
- As they had announced was their intention, Bain has made a binding offer for Fuji Soft Inc (9749 JP), bidding ¥9,450 against KKR’s ¥8,800. They aim to launch late October.
- There is no minimum and no maximum. The Founding Nozawa family had thrown their lot in with Bain not KKR and that 18.5% is tied up.
- There are conditions, and those are ALL-important. And I expect we see in the next week or so how coercive KKR’s “non-coercive” scheme change was. I’ve got 🍿🍿🍿.
Fuji Soft (9749 JP): Bain’s Better Late than Never Competing Offer
- Bain’s pre-conditional tender offer for Fuji Soft Inc (9749 JP) is JPY9,450, a 7.4% premium to KKR’s JPY8,800 offer. There is no minimum or maximum acceptance condition.
- The preconditions relate to regulatory approval (Vietnam) and Board recommendation. Bain’s offer is designed to bring KKR to the negotiating table to find a solution to privatisation.
- KKR can 1) do nothing, 2) work with Bain on a solution, or 3) engage in a price war to prevent the satisfaction of Bain’s Board recommendation precondition.
ECM Weekly (14th Oct 2024) – Tokyo Metro, Rigaku, Hyundai, China Res, Swiggy, USS, Akeso, Shiyue
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the live IPOs front, the two Japanese IPOs, Tokyo Metro (9023 JP) and Rigaku Holdings (268A JP) appeared attractively priced. The same couldn’t be said about Hyundai Motor India.
- On the placements front, there were deals in Hong Kong, Japan and India.
After TSE’s Request, the Key Is Whether the Company Can Deliver While Investors Are Still Hopeful
- There’s gap in timelines for results between many companies that started to incorporate the cost of capital into their management and investors who are looking for results in investment performance.
- If this gap surfaces, investor expectations will be stripped away. Companies that determine that it will take a long time to achieve results can be expected to consider going private.
- For a company to seek access to institutional investors, it must first produce results. The race is on to achieve results within limited timeframes and faster than other companies.
Shionogi & Co (4507 JP): Performance to Improve in H2; Upcoming Drugs to Accelerate Growth
- Shionogi & Co (4507 JP) has reiterated FY25 guidance, indicating sequentially better financial performance in Q2FY25 as well as H2FY25. Overseas business and royalty income are on strong footing.
- Shionogi has acquired the exclusive distribution rights for Quviviq in Japan. With better efficacy and safety profile, and sizable patient population, Quviviq should be a significant revenue contributor.
- Shionogi submitted NDA in Japan for zuranolone, a treatment in development for major depressive disorder (MDD). Approval is expected in H1FY26.
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