Industrials: Hitachi Transport System, Toyo Construction, Beijing Enterprises Urban Resources, Arwana Citramulia, AKR Corporindo, Gateway Distriparks, ACCO Brands, MonotaRO Co Ltd and more

• KKR and Hitachi Ltd (6501 JP) have a deal to get KKR to buy Hitachi Transport System (9086 JP) in a VLBO (Very Leveraged BuyOut). 
• As somewhat expected, it is a “split price deal” where Hitachi will accept a lower price for its 40% stake than minorities will receive in a Tender Offer. 
• This is a big win for Hitachi Transport shareholders, but the Tender Offer likely won’t start until late September.

• Toyo Construction (1890 JP) today released a change to its Target Opinion Statement for Infroneer’s takeover bid at ¥770/share. It supports the tender itself, but withdraws its recommendation investors tender.
• Infroneer refused to raise their price, so this effectively kills their bid (though they will extend). TC will engage with Yamauchi Family Office which has separately offered to bid ¥1,000/share.
• The dynamics have now changed. This is a range trade, and will likely take time unless Infroneer says “I’ll sell at ¥1,000/share.”

• Beijing Enterprises Urban Resources (3718 HK) (BEUR) has announced a mandatory general cash offer from Beijing Enterprises Water Group (371 HK) (BEW). 
• This Offer was triggered by BEW increasing its stake to 31.23% from 29.97%. The Offer price is HK$0.78/share, a zero premium to last close and 20% above the 30-day average. 
• This is an underwhelming privatisation Offer. BEUR traded through terms as recent as last November. The Offer price has not been declared final.

• Arwana Citramulia (ARNA IJ) released a strong set of 1Q2022 surpassing expectations and paving the way for strong growth in 2022 driven by an improving product mix.
• ASPs for Arwana are increasing through changing product mix, which is improving margins but not suppressing demand with a move to higher-end Digi Uno and ARNA products. 
• A webinar with management confirmed the positive outlook for 2022, with an estimate of +30% bottom-line growth forecast from increased volumes, greater efficiencies, and higher ASPs through improved product mix.

• AKR Corporindo (AKRA IJ) results continued to reflect its key exposure to both economic recovery in Indonesia and its exposure to rising commodity prices through its chemical distribution.
• Volume growth in petroleum distribution may surprise on the upside, whilst chemical prices remain elevated boosting that business.
• The pipeline for its JIIPE industrial estate looks promising and management remains confident in targeting 40 ha land sales with potential upside from Freeport Smelter related demand. 

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• ACCO experienced a recovery in all its segments in the first quarter 2022, especially from COVID-19 related closures in Mexico and Brazil
• ACCO reported comparable sales rose 11 percent compared to the prior year, but foreign exchange limited the quarter’s performance
• ACCO is continuing to project a higher free cash flow than in 2021, which would be used to reduce its debt level.

• Consolidated OP was 6.664bn yen (+10.9% YoY), and OPM was 12.2% (-0.9ppt YoY).
• Progress toward the company’s 1H OP guidance of 11.702bn yen (-1.6% YoY) was 57%.
• OP exceeded its 1Q target of 6.268bn yen by 396m yen