In today’s briefing:
- Kanematsu Electronics (8096 JP): JPY6,200 Tender Offer from Kanematsu Corporation
- Kanematsu Sustech (7961) ¥2250/Share Tender Offer by Parent – Supremely Illiquid But Interesting
- Kanematsu Electronics (8096) – ¥6200/Share Tender Offer by Parent – Easy Takeout
Kanematsu Electronics (8096 JP): JPY6,200 Tender Offer from Kanematsu Corporation
- Kanematsu Electronics (8096 JP) has recommended Kanematsu Corp (8020 JP)’s tender offer of JPY6,200 per share, an 32.9% premium to the undisturbed price (27 January).
- 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 is attractive as it represents an all-time share price high and a premium to peer multiples. This suggests a done deal.
Kanematsu Sustech (7961) ¥2250/Share Tender Offer by Parent – Supremely Illiquid But Interesting
- Kanematsu Corp (8020 JP) announced two tender offers late Friday to take out minorities in subsidiaries. One larger, safer deal. One smaller, illiquid, but potentially interesting one.
- This is the interesting one. It is being done at the wrong price, and it has investors who might care who have been long-time holders.
- This could get interesting. You have a buyer. A target. It’s pretty clean except for shareholder structure. And the buyer has room to pay up.
Kanematsu Electronics (8096) – ¥6200/Share Tender Offer by Parent – Easy Takeout
- Kanematsu Corp (8020 JP) announced two tender offers Friday to take out subsidiaries. One more liquid one. One very small sub. This is the larger, easier deal.
- Kanematsu Electronics is an IT shop, designing and executing system integration and maintenance services. It is a great business. The takeout is a 33% premium to an all-time high.
- It might still be a bit cheap, but it is not egregious, and it would be quite difficult to block.
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