In today’s briefing:
- Last Week in Event SPACE: Toshiba, Swire, SOHO, Link Admin, DIDI Global, 51job
- What We Should Know About the Nexon Inheritance Tax Dilemmas
Last Week in Event SPACE: Toshiba, Swire, SOHO, Link Admin, DIDI Global, 51job
- Toshiba Corp (6502 JP)‘s bidder list is out. It is Bain, Brookfield, JIP-JIC, and CVC. Overall, the impression of this pool of candidates is negative
- Swire Pacific (A) (19 HK) is trading cheap at a look-through forward P/B of 0.26x compared to its five-year average of 0.38x, and the two-year average pre-Covid of 0.48x.
- Soho China (410 HK)‘s name was toxic after SAMR dinged Blackstone’s deal. It is no less toxic now. Arguably the upside is greater than the downside. But on what timeframe?
What We Should Know About the Nexon Inheritance Tax Dilemmas
- A critical issue arose lately. The Nexon heirs do not have collateral for installment payment. The Korea NTS doesn’t accept shares of an unlisted company as collateral for tax payment.
- So, the contingency plan is a direct equity sale. The more feasible would be for NXC to sell its stake in Nexon for the convenience of valuation and finding buyers.
- The deal size is so large that it can come out in multiple block deals rather than a single buyer deal by the end of October.
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