In today’s briefing:
- Oji Paper (3861 JP) – Big New Buyback After Crossholding Sales And An Activist Peeking From Register
- NEC Networks (1973 JP) Final Showdown II – Synergies Not Included, So Fair Value Not Offered
- GA Technologies (3491 JP): Full-year FY10/24 flash update
- J Frontier Co Ltd (2934 JP): Full-year FY05/24 flash update
Oji Paper (3861 JP) – Big New Buyback After Crossholding Sales And An Activist Peeking From Register
- Paper manufacturer Oji Holdings (3861 JP) has spent 25 years not going anywhere. Their current MTMP isn’t exciting. And it looks like they will fail worse than last time.
- But an activist put their head above the parapet recently, and now the company has announced larger new cross-holding selldown targets, and a big 9% buyback, with a ToSTNeT-3 tomorrow.
- The stock is at 0.47x book. They have nearly ¥400bn of financial assets which are non-core. They have land and property holdings. And they have lots of cross-holdings to repurchase.
NEC Networks (1973 JP) Final Showdown II – Synergies Not Included, So Fair Value Not Offered
- Yesterday, NEC Corp (6701 JP) extended its Tender Offer to buy controlled subsidiary Nec Networks & System Integr (1973 JP) for another 10 days. It did not have enough shares.
- As discussed here 4wks ago, then here yesterday, NEC might not get enough shares unless it offers a higher price. There’s a reason. It is not a high enough price.
- METI Fair M&A Guidelines and Guidelines for Corporate Takeovers define fair. Guarantees of a floor price and a fair allocation of synergies. One is questionable. The other is not there.
GA Technologies (3491 JP): Full-year FY10/24 flash update
- FY10/24 revenue reached JPY189.9bn (+29.5% YoY), with business profit at JPY4.1bn (+86.6% YoY), exceeding forecasts.
- RENOSY Marketplace expanded market share, becoming top in pre-owned condominium investments for five consecutive years.
- ITANDI business saw increased ARR, customer numbers, and product adoption, aided by M&A activities in 2024.
J Frontier Co Ltd (2934 JP): Full-year FY05/24 flash update
- Revenue increased to JPY17.7bn (+5.2% YoY) due to subscriber growth in D2C and BPO services expansion.
- Extraordinary losses included JPY829mn in impairment losses and JPY140mn for financial statement correction costs.
- FY05/25 forecast: Revenue JPY21.0bn (+18.5% YoY), EBITDA JPY500mn, net loss JPY490mn to JPY290mn.
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