In today’s briefing:
- Toshiba – 16 Millionth New Plan Unlocks New Value! No Just Kidding It Didn’t
- Bapcor (BAP AU): Potential Suitors Kicking Tyres
- China Mobile (941 HK) Buyback Period Starts
- Meitetsu Transport (9077) Takeover – Parent “Stealing” Logistics Assets at 0.55x Book
- DAX Index: Quiddity Leaderboard for March 2022 (2.0)
- ADTRAN/ADVA Optical Networking: Additional Acceptance Period
- Mitsubishi Estate Logistics (3481 JP): Offering Could Trigger Outperformance Vs Peers
- Senex Energy: Scheme Booklet Out. Meeting On The 15 March
Toshiba – 16 Millionth New Plan Unlocks New Value! No Just Kidding It Didn’t
- Another quarter, another Toshiba Medium Term Plan as activist investors keep sending management back to the drawing board until they come back with a privatisation.
- Except there is still no sign of any significant appetite among buyers and no sign that they would be allowed to go through with it even if there was.
- So Toshiba management shuffled a few deck chairs and the market yawned.
Bapcor (BAP AU): Potential Suitors Kicking Tyres
- Automotive aftermarket parts provider Bapcor Ltd (BAP AU) has reportedly recently received two buyout proposals.
- This follows the sudden departure of former CEO Darryl Abotomey in December.
- Confirmation of these approaches may be clarified when 1H22 results are released on the 9 February.
China Mobile (941 HK) Buyback Period Starts
- China Mobile (941 HK) announced an H-share buyback program which had as its upper limit the purchase of 37% of the H-share CCASS position.
- After that, the SOE parent announced a plan to buy RMB shares in Shanghai.
- The virtuous cycle of shareholder return starts today. Today is the first day China Mobile can start buying its H-shares.
Meitetsu Transport (9077) Takeover – Parent “Stealing” Logistics Assets at 0.55x Book
- This should come as no surprise. Nagoya Railroad (9048 JP) is buying out minorities in logistics unit Meitetsu Transport (9077 JP).
- Given the shareholder structure, this can be done and squeezed out with not a single share tendered, but it’s ugly.
- Logistics REITs trade at 1.3-1.5x book. This is being done at 0.55x book where just 1.0x book for the warehouse assets would be more than the EV at Takeover Price.
DAX Index: Quiddity Leaderboard for March 2022 (2.0)
- DAX is a German blue-chip index that currently tracks the 40 largest companies listed on the Regulated Market of the Frankfurt Stock Exchange.
- The DAX Index is reviewed on a quarterly basis in March, June, September, and December.
- In this insight, we take a look at the potential constituency changes that can happen in the March 2022 review.
ADTRAN/ADVA Optical Networking: Additional Acceptance Period
- Adtran lowered the minimum acceptance threshold from 70% to 60%; the condition was thus fulfilled by the end of the initial acceptance period. Additional acceptance period runs until 14 February.
- The consummation of the offer continues to be subject to closing conditions not yet fulfilled, especially foreign direct investment approval in Germany.
- A 15% increase in the ADVA share price since the threshold condition was fulfilled has caused the spread to become negative (-3.4%). If you were already long, recommendation is tender.
Mitsubishi Estate Logistics (3481 JP): Offering Could Trigger Outperformance Vs Peers
- After the close on 7th February 2022, logistics JREIT Mitsubishi Estate Logistics (3481 JP) (“MEL”) announced a follow-on equity offering to fund part of their recently announced property acquisition.
- The primary offer quantity is 56,000 units. In addition, there will also be an over-allotment quantity of 2,800 units. The total size of this offering could be roughly ¥24.5bn (~US$213mn).
- Below is a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.
Senex Energy: Scheme Booklet Out. Meeting On The 15 March
- Senex Energy (SXY AU)‘s Scheme Booklet is now out. The Scheme Meeting will be held on the 15 March.
- The Independent Expert has concluded this US$600mn Offer is fair and reasonable and in the best interest of Senex shareholders.
- The Offer price is full. And trading tight to terms.
Before it’s here, it’s on Smartkarma
