In today’s briefing:
- Japan Market Attractive for PE Investment Despite Low Profit Growth
- Last Week in Event SPACE: Tsuruha/Welcia, GAPack, Canvest, HKBN
Japan Market Attractive for PE Investment Despite Low Profit Growth
- The phenomenon of declining numbers of listed shares due to share buybacks and declining numbers of listed companies in US/Europe starting in 1990s began in Japan 30 years later.
- On TSE, where there are many companies with parent-subsidiary listings and large shareholders like founder families and parent companies, more companies will choose to go private because of listing costs.
- Private equity investments in Japanese companies will further increase in the future, as it is easier to find investment opportunities in Japan, where stock valuations are relatively low.
Last Week in Event SPACE: Tsuruha/Welcia, GAPack, Canvest, HKBN
- Tsuruha (3391 JP) and Welcia (3141 JP) may merge quicker than expected. Meaning a one-year “guess the price” ratio. Expect Tsuruha to gain against Welcia from here.
- PUSUs exist in Hong Kong. In its bid for GAPack (468 HK), XJF should sound out the SFC to put Bi/Hong on notice.
- Canvest Environmental (1381 HK) effectively ticks off another pre-con. This transaction continues to trade too wide to terms.
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