In today’s briefing:
- JR West (9021 JP) – Shareholder Structure Means Large-Ish Buyback Could Have Impact
- AZ-Com Maruwa Launches Hostile TOB on Chilled & Frozen Logistics (9099) – Expect More Fun To Come
- Chilled & Frozen Logistics (9099 JP): AZ-COM Maruwa Calls the Board’s Bluff, Launches the Offer
- TSE’s “Request” Is a Catalyst for a Final Decision on the Foundation of Years of Engagement
- Peptidream (4587 JP): Steadily Riding the Next Wave of Drug Discovery
JR West (9021 JP) – Shareholder Structure Means Large-Ish Buyback Could Have Impact
- Yesterday, West Japan Railway Co (9021 JP) announced FY23 earnings, a higher dividend, an update to the Medium-Term Management Plan (p10~), and a Buyback.
- Short & Sweet: Revenues were +17.2%yoy, OP +114.1%, NP +1.6%. OPM was 11.0% and ROE 9.2% (both best since FY18). Guidance is Revenue up, OP down, NP tiny up.
- The new FY25 (Mar26) OP guide in the MTMP is the old Mar28 target (mostly inbound tourism-driven). The Buyback is biggish. It is worth looking at the details.
AZ-Com Maruwa Launches Hostile TOB on Chilled & Frozen Logistics (9099) – Expect More Fun To Come
- Chilled & Frozen Logistics Holdings (9099 JP) had been sending out questions, and trying to get AZ-Com Maruwa Holdings (9090 JP) to delay the start until at least late-May.
- AZ-Com Maruwa answered questions (first and second set) and on the 24th, C&F asked AZ-Com to extend. They did not extend. AZ-Com announced the Tender Offer at ¥3,000 today.
- C&F responded today saying the TOB is launched without C&F Board approval. Then they said some other things that might be disclosed when C&F’s Board presents its Target Opinion.
Chilled & Frozen Logistics (9099 JP): AZ-COM Maruwa Calls the Board’s Bluff, Launches the Offer
- AZ-Com Maruwa Holdings (9090 JP) has satisfied the precondition for its hostile Chilled & Frozen Logistics Holdings (9099 JP) JPY3,000 offer. The offer closes on 17 June (31 business days).
- AZ-COM Maruwa has called the Board’s bluff by providing sufficient time (extending the offer period from 20 to 31 business days) for a white knight to lob a competing bidder.
- While a bump is probable, the shares already factor in a significant bumpitrage premium. A potential bump has a good chance of being lower than the last close.
TSE’s “Request” Is a Catalyst for a Final Decision on the Foundation of Years of Engagement
- Many companies have low liquidity since listing, with nearly half of companies having major shareholders with over 20% ownership. Raising listing criteria should considered to improve quality of the market.
- TSE seems to raise the listing criteria for Growth Market in 2025, when the transitional measures expire, but for Prime Market, TSE is likely to respond with a “request.”
- Although TSE’s “request” may be the catalyst for increasing MBOs and dissolution of parent-subsidiary listings, engagement with overseas investors over years to resolve management issues was foundation of this trend.
Peptidream (4587 JP): Steadily Riding the Next Wave of Drug Discovery
- Peptidream Inc (4587 JP) has obtained first-in-human imaging studies approval for its first in-house peptide radiopharmaceutical therapeutic program, PD-32766 targeting patients with clear cell renal cell carcinoma.
- Novartis (NOVN SW) has expanded peptide discovery collaboration with Peptidream. The expanded partnership could bring up to $2.7B in milestone payments plus royalties to Peptidream.
- In 2023, Peptidream reported revenue of ¥29B, up 7% YoY, with radiopharmaceutical revenue growing 40% YoY to ¥16B. For 2024, the company guided for revenue of ¥35B, up 22% YoY.
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