In today’s briefing:
- Fujitsu General (6755) – Long Sale Process Finally Over. Unexciting but Uncomplicated Deal.
- Fujitsu General (6755 JP): Fujitsu (6702 JP) Supports a Light Tender Offer
- Kaken Pharmaceutical (4521 JP): Johnson Deal Is Good For Future, But For Now Bleak H2 Ahead
- Hiday Hidaka (7611 JP): Q3 FY02/25 flash update
Fujitsu General (6755) – Long Sale Process Finally Over. Unexciting but Uncomplicated Deal.
- In December 2019, an article in slightly odd Japanese business magazine Sentaku (選択) suggested Fujitsu Ltd (6702 JP) would imminently seek to address dual listings of subs.
- Some subs went early. The auction for Fujitsu General (6755 JP) started spring 2023, failed, started again, failed again, and the shares languished.
- Two years later we have a deal. Large privately-held company Paloma-Rheem Holdings is the buyer in a split-price deal which comes at a decent but not exorbitant premium.
Fujitsu General (6755 JP): Fujitsu (6702 JP) Supports a Light Tender Offer
- Fujitsu General (6755 JP) announced a preconditional tender offer from Paloma Rheem Holdings Co at JPY2,808 per share, a 23.5% premium to the last close.
- The offer, which is preconditional on regulatory approvals and will open in early July, is attractive compared to historical trading ranges and peer multiples.
- The process is lacking as Fujitsu declined to conduct an auction. The offer is below the midpoint of the IFA DCF valuation range, and the Board requested price.
Kaken Pharmaceutical (4521 JP): Johnson Deal Is Good For Future, But For Now Bleak H2 Ahead
- Kaken Pharmaceutical (4521 JP) enters into a license agreement with J&J for the global development, manufacturing, and commercialization of a STAT6 program, which is being developed by Kaken.
- Kaken will advance KP-723 to the completion of Phase I clinical trials, after which J&J will take over. Kaken will receive an upfront payment of $30M from J&J.
- The deal is a boost for future revenue flow but offers no near-term respite for revenue loss from NHI drug price revision and generic competition for top selling products.
Hiday Hidaka (7611 JP): Q3 FY02/25 flash update
- Revenue increased by 13.5% YoY to JPY41.0bn, with record highs in cumulative Q3 FY02/25 revenue and profits.
- Hidakaya restaurants contributed JPY38.9bn, or 95% of total revenue, with a 14.4% YoY increase in cumulative Q3.
- The company plans two new store openings in Q4, with a focus on recruitment and HR development.
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