In today’s briefing:
- Uzabase’s (3966 JP) JPY1,500 Tender Offer from Carlyle
- Mitsubishi Estate (8802) – Buyback Announced and Long-Term It’s a Soft Squeeze.
Uzabase’s (3966 JP) JPY1,500 Tender Offer from Carlyle
- Uzabase Inc (3966 JP) has recommended Carlyle Group Inc (CG US)’s tender offer of JPY1,500 per share, a 72.2% premium to the undisturbed price (9 November).
- The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
- The offer is reasonable. The offer ends on 22 December. Tendering shares represent a 27.94% ownership ratio. At the last close, the gross spread to the offer is 46.9%.
Mitsubishi Estate (8802) – Buyback Announced and Long-Term It’s a Soft Squeeze.
- Mitsubishi Estate (8802 JP) reported Q2 earnings today. Domestic revenue and OP in the commercial property and residential businesses were down. International and investment management businesses were up A LOT.
- Most of the gains in international business were capital gains, but overall, H1 results were in line with full-year guidance. Condo deliveries are completely in H2.
- The company also decided on a ¥100bn buyback. Headline says up to 70mm shares or 5.29% of shares out ex-Treasury. It’ll be 20+ smaller. Details, however, matter.
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