In today’s briefing:
- Payroll (4489 JP) MBO (¥1,380/Share) By New Japan PE Deal Entrant TA Associates
- Bank of Japan Meeting Signals– Our Take on the Implications for Japanese Banks
- Payroll (4489 JP): TA Associates’ Tender Offer at the IPO Price (JPY1,380)
- Nidec (6594) | A Mixed Quarter
Payroll (4489 JP) MBO (¥1,380/Share) By New Japan PE Deal Entrant TA Associates
- Payroll (4489 JP) today announced that it would go private in a deal led by US PE Firm TA Associates (Japan office led by a former Carlyle person it appears).
- Payroll IPOed in June 2021 at ¥1,380. Then it fell. Now this takeout is at ¥1,380/share. Not a great look but not egregiously unfair by the looks of it.
- This deal is going to get done easily as agreed participants and probable-friendlies get them past the minimum without retail or foreign holders participating.
Bank of Japan Meeting Signals– Our Take on the Implications for Japanese Banks
- In the post meeting press briefing, governor Kazuo Ueda said there was an increasing chance of the BoJ’s 2% inflation target being hit; JGB 10Y yields rose as a result
- This implies that the BoJ could change from negative interest rate policy in the near future, perhaps as soon as March, which is positive for the Japanese bank sector’s fundamentals
- We believe that this new will give further impetus to Japanese bank shares, especially those banks that are well geared into rising domestic interest rates; we highlight eight banks
Payroll (4489 JP): TA Associates’ Tender Offer at the IPO Price (JPY1,380)
- Payroll (4489 JP) has recommended TA Associates’ sponsored MBO tender offer of JPY1,380 per share, a 42.4% premium to the undisturbed (23 January).
- The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 61.28% ownership ratio.
- Based on the irrevocables, the minimum acceptance condition requires a 30.5% minority acceptance rate, which is achievable as the offer is marginally short of the all-time high.
Nidec (6594) | A Mixed Quarter
- Consolidated net sales increased by +4.4% YoY to ¥594,026 million
- Operating profit increased by 90% YoY to ¥53,562 million, but were down 3.7% QoQ.
- Full-Year guidance for OP was revised down by 20% to ¥180,000 million. We remain bullish on long-term structural electrification thesis
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