In today’s briefing:
- ToyoKen (1890) Mystery Bidder Is Yamauchi No. 10 Family Office – And That Changes Things
- Elon Musk Bids for All of Twitter 🤯
- WT Micro’s Offer For Excelpoint Tech
- Lawson Considering IPO for Seijo Ishii
- Excelpoint’s Privatisation Offer from WT
- Uniti Enters SID With Morrison/Brookfield
- Uniti Enters a SID with Morrison/Brookfield Consortium at A$5.00 Per Share
- Suchuang Gas (1430 HK): Pledges, Results Delays, And Ongoing Suspension
ToyoKen (1890) Mystery Bidder Is Yamauchi No. 10 Family Office – And That Changes Things
- A Nikkei article this morning says the mystery bidder behind WK1/2/3 Limited is Nintendo founding family’s Yamauchi No.10 Family Office. This changes things more than just knowing their identity does.
- To start, their website is the most fun investment management company website I have come across. It’s great. https://y-n10.com/. It’s also well worth reading. It’s also worth noting their history.
- Understanding the parameters here is key to understanding possible next steps.
Elon Musk Bids for All of Twitter 🤯
- Elon Musk has apparently sent a letter to Bret Taylor, Chairman of the Board of Twitter, saying he would make a bid for 100% of Twitter at US$54.20/share.
- Get it? Get it? Nudge nudge wink wink. That’s all part of the fun for him.
- The question is whether this bid, which creates problems of whether one should take it seriously vs literally, or vice versa, engenders more discussion about how the platform makes money.
WT Micro’s Offer For Excelpoint Tech
- WT Microelectronics (3036 TT) has entered into an agreement to acquire electronic component distributor Excelpoint Technology (EXLP SP) by way of a Scheme at a cash consideration of S$1.93/share.
- This is an Offer premium 7.8% to last close but a 21.4% premium prior to the announcement Excelpoint was in discussions with a third party involving the company’s shares.
- Albert Phuay (founder and CEO) will reinvest part of his cash consideration under the Scheme in 20% equity of the Acquiring Entity, with the balance 80% stake owned by WT.
Lawson Considering IPO for Seijo Ishii
- Lawson Inc (2651 JP) acquired the upmarket supermarket operator, Seijo Ishii, in 2014 for ¥55 billion.
- It is now considering plans for an IPO for Seijo next year following a boom in the company’s fortunes during the pandemic.
- Net profit rose 13% last year and the potential for growth remains strong given the expansion of the wealth market in Japan.
Excelpoint’s Privatisation Offer from WT
- WT Microelectronics (3036 TT) will offer S$1.93 in cash and a final FY2021 dividend (ex-div date: 28 April, payment date: 13 May) of S$0.088 for a total consideration of S$2.018.
- The key scheme conditions are shareholder approval and Court approval. The scheme meeting will be held sometime in late June to early July.
- The offer price represents a 10-year share price high. At the last close of S$1.96, the gross and annualised spread for a mid-Sep effective date is 3.0% and 7.1%, respectively.
Uniti Enters SID With Morrison/Brookfield
- Uniti Group Ltd (UWL AU) has now entered into a Scheme Implementation Deed (SID) with the Morrison/Brookfield Consortium.
- The Offer price remains at A$5.00/share, in line with the revised proposal on the 29 March.
- Uniti’s Board of Directors unanimously recommends that Uniti shareholders vote in favour of the Scheme in the absence of a Superior Proposal.
Uniti Enters a SID with Morrison/Brookfield Consortium at A$5.00 Per Share
- Uniti Group Ltd (UWL AU) has entered a SID with the Morrison/Brookfield consortium at A$5.00 cash per share less dividends declared or paid after today.
- The key scheme conditions are shareholder approval, FIRB approval and Court approval. The scheme meeting will be held in July.
- We think that the offer is attractive. At the last close price of A$4.96, the gross and annualised spread to a July-end effective date is 0.8% and 2.8%, respectively.
Suchuang Gas (1430 HK): Pledges, Results Delays, And Ongoing Suspension
- Shortly after piped natural gas operator Suchuang Gas Corp (1430 HK) announced a privatisation Offer from CR Gas (1193 HK) last August, shares were suspended. And remain suspended today.
- That suspension pivoted off previously unreleased information that certain bank deposits of Suchuang Gas’ subsidiaries had been pledged.
- An investigation remains ongoing. A material portion of those pledges have defaulted. Financial results have been delayed. However, the Offer appears to still be moving forward.
Before it’s here, it’s on Smartkarma
