In today’s briefing:
- Park24 Placement – Large Deal to Digest and a Long Settlement Period
- Tokyo Electron (8035 JP): Delays and Uncertainty
- Toyo Construction (1890) – Mystery Holders Now 17% (Or More)
- Otis/Zardoya Otis: Squeeze-Out
Park24 Placement – Large Deal to Digest and a Long Settlement Period
- Park24 Co Ltd (4666 JP) aims to raise around JPY25.5bn (US$210m) via selling 16m new shares at a fixed price of JPY1,644, representing a 9.9% discount to last close.
- Proceeds from the deal will be geared towards digital investment towards improving the firm’s business efficiency and for expanding its mobility fleet.
- In this note, we will talk about the firm’s track record and run the deal through our ECM framework.
Tokyo Electron (8035 JP): Delays and Uncertainty
- As of February, TEL expected the global wafer fab equipment market to grow by nearly 20% in calendar 2022. This seems increasingly unlikely.
- Japanese data shows equipment demand leveling off while the economic situation deteriorates and semiconductor capacity expansion projects are delayed.
- The shares have dropped 22% since the beginning of January and are now selling at 20x management’s EPS guidance for FY Mar-22. Not cheap in historical terms.
Toyo Construction (1890) – Mystery Holders Now 17% (Or More)
- WK 1-3 Limited are now (as of a week ago) 17.34% of Toyo Construction’s share register. They bought 40+% of volume in the relevant period, as I suggested they might.
- On a realtime basis, they could be 20+%, but because no single entity is there they would not become top shareholder as a triumvirate.
- I offer consolidated thoughts and like the idea of buying the dip.
Otis/Zardoya Otis: Squeeze-Out
- Otis Worldwide Corp (OTIS US) increases its stake in Zardoya Otis SA (ZOT SM) to 95.51% after the takeover bid. The settlement date is 12 April.
- Otis has decided to proceed with the squeeze-out. Next 3 May will be the date.
- The outcome is in line with expectations and my recommendation to tender. Gross spread is 0.43%, and 6.31% is the estimated annualised return (assuming settlement on 6 May).
Before it’s here, it’s on Smartkarma
