In today’s briefing:
- Tohokushinsha Film (2329 JP): Potential Scenarios as 3D Lobs a Privatisation Proposal
- Nidec (6594 JP): Buy into Current Decline
- Weekly Deals Digest (28 Jul) – Fancl, Furukawa Battery, Sun Corp, TFC, Canvest, CPMC, GAPack, Arvida
- What Investors and Companies Should Do to Make Engagement More Effective ….
Tohokushinsha Film (2329 JP): Potential Scenarios as 3D Lobs a Privatisation Proposal
- On 24 July, 3D Investment Partners proposed to privatise Tohokushinsha Film (2329 JP) through a tender offer at JPY600-650 per share. A special committee will evaluate the proposal.
- 3D’s privatisation plan, in its current terms, is a non-starter as the price is low, and its activism campaign has so far been met with the Board’s scepticism.
- The possible scenarios are that a white knight emerges to buy 3D’s stake/launch a counteroffer, 3D bumps the offer price, or the Board introduces a more ambitious MTM plan.
Nidec (6594 JP): Buy into Current Decline
- If further restructuring can be avoided, profitability should return to an acceptable level while sales growth continues.
- The decline of EV prices has probably run its course and global demand for factory automation continues to rise despite weakness in China.
- Projected valuations are at a 10-year low. Investor attention can now shift to economic and operating risks.
Weekly Deals Digest (28 Jul) – Fancl, Furukawa Battery, Sun Corp, TFC, Canvest, CPMC, GAPack, Arvida
- 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: Sanil Electric (062040 KS) and Hyundai Motor India (1342Z IN) IPOs.
- Event-Driven developments: Fancl Corp (4921 JP), Furukawa Battery (6937 JP), Sun Corp (6736 JP), Canvest Environmental Protection Group (1381 HK), CPMC Holdings (906 HK), Greatview Aseptic Packaging (468 HK).
What Investors and Companies Should Do to Make Engagement More Effective ….
- The high percentage of foreign ownership is a characteristic of companies that have improved capital profitability and increased valuations, which is effective for overseas investor engagement.
- If the system is revised to help collaborative engagement and the identification of substantial shareholders, some of the challenges will be eliminated for both investors and the company.
- To make the engagement more effective, investors should increase active funds and companies should decrease cross-shareholdings.
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