In today’s briefing:
- Socionext Placement – Valuation More Reasonable but past Secondary Offerings Have a Mixed Record
- Merger Arb Mondays (10 Jul) – JSR, Yachiyo, InvoCare, Costa, Musgrave, Metro Pacific, Healthway
- Weekly Deals Digest (09 Jul) – Socionext, Tryt, Costa, Musgrave, United Malt, Yachiyo, Metro Pacific
- Plus Alpha Consulting Placement – Pulling Out All Stops for Deal Success as Insiders Are Selling
- Z Holdings: Yahoo Shopping Falling Further Behind Amazon and Rakuten
- Capital Efficiency Is the Topic of the June AGM, While What Is Happening to Passive Fund Voting?
Socionext Placement – Valuation More Reasonable but past Secondary Offerings Have a Mixed Record
- Three shareholders of Socionext (6526 JP) aim to raise around US$1.4bn via selling all of their shares in Socionext.
- We have covered the background of the deal in our earlier note, Socionext Placement – A US$1.8bn Cleanup, Will Have to Give up Some of Its 6x Listing Gains.
- In this note, we talk about the updates and look at the performance of some of the past Japan deals.
Merger Arb Mondays (10 Jul) – JSR, Yachiyo, InvoCare, Costa, Musgrave, Metro Pacific, Healthway
- We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads 111 Inc (YI US), ENM Holdings (128 HK), Chindata Group (CD US), Estia Health (EHE AU), Poly Culture Group Corp H (3636 HK), Costa Group Holdings (CGC AU).
- Lowest spreads – Healius (HLS AU), Hailan Holdings (2278 HK), Liontown Resources (LTR AU), Toyo Construction (1890 JP), Oishi Group PCL (OISHI TB), Yachiyo Industry (7298 JP), Penguin.
Weekly Deals Digest (09 Jul) – Socionext, Tryt, Costa, Musgrave, United Malt, Yachiyo, Metro Pacific
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments – Tryt Inc (9164 JP), Alibaba (ADR) (BABA US)‘s Cainiao & Cloud Intelligence Group, J&T Global Express (1936374D CH) IPOs & Socionext (6526 JP)‘s secondary placement.
- Event-Driven developments – Costa Group Holdings (CGC AU), Musgrave Minerals (MGV AU), Yachiyo Industry (7298 JP), Metro Pacific Investments Co (MPI PM), Healthway Medical Corp (HMED SP).
Plus Alpha Consulting Placement – Pulling Out All Stops for Deal Success as Insiders Are Selling
- Three shareholders of Plus Alpha Consulting (4071 JP) (PAC) aim to raise around US$230m via selling over 26% of the company.
- PAC was listed in 2021 and after a somewhat tepid initial performance it has been doing well over the past year.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework
Z Holdings: Yahoo Shopping Falling Further Behind Amazon and Rakuten
- Last year was pivotal for Yahoo Japan: despite record group performance, GTVs in e-commerce actually fell despite continued strong growth in the sector
- In a recent survey, Amazon was the most frequently used e-commerce mall at 49.6%, followed by Rakuten (32%), but Yahoo was far, far below at just 9.8%.
- Yahoo Shopping is now not only less popular with consumers, even merchants are dissatisfied – which is saying something when the service is essentially free.
Capital Efficiency Is the Topic of the June AGM, While What Is Happening to Passive Fund Voting?
- Companies that accept reductions in policy shareholdings tend to repurchase their own shares. Pressure to reduce policy shareholdings will increase further this year when share prices are rising.
- In order to verify whether institutional investors’ voting criteria and voting behavior are consistent, the reasons for supporting/opposing individual proposals should be disclosed in more detail.
- Investors are expected to base decisions on performance, as voting advisers returned to policy of recommending voting against top management in companies with lower-than-standard ROEs due to recovery from COVID-19.
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