In today’s briefing:
- Noritsu Koki (7744) – PAAAAYDAAAAY!
- Japan Post Bank – A Double on Spread Expansion and More on a Buyback?
- CIMIC (CIM AU) Takeover Offer: Should Get Done; Index Implications
- Hochtief’s Unconditional Offer For CIMIC
- CIMIC (CIM AU) Replacement in ASX200
Noritsu Koki (7744) – PAAAAYDAAAAY!
- Noritsu Koki (7744 JP) just sold two-thirds of its stake in subsidiary JMDC Inc (4483 JP) to Omron Corp (6645 JP) for ¥112bn – pretty good for a ¥61bn marketcap.
- This is the payday for those who have been long NK as a proxy for JMDC and possibly short JMDC against it. Now the shape of the company is different.
- A closer look at the pro-forma financial profile is warranted. It’s a lot of money. BUT… if you look today and buy today you do NOT get the special div!
Japan Post Bank – A Double on Spread Expansion and More on a Buyback?
- Japan Post Bank is down 15.2% since its earnings results as quarterly profit declined noticeably.
- This was driven by falls in income from PE investments and a reduction in gains on forex from maturing investments.
- While that is a sharp fall for the name, its overall risk profile, exposure to rising rates and cheap valuations make it extremely attractive in our view.
CIMIC (CIM AU) Takeover Offer: Should Get Done; Index Implications
- Hochtief AG (HOT GR) holds 78.58% of CIMIC Group Ltd (CIM AU) and has made an offer to acquire the remaining shares at A$22/share.
- Hochtief will squeeze out the remaining shareholders once it holds more than 90% of the shares in CIMIC Group Ltd (CIM AU).
- We think the offer is fair and expect the stock to open close to A$22/share tomorrow. There could be ad hoc inclusion to the ASX200 index in May or June.
Hochtief’s Unconditional Offer For CIMIC
- Actividades de Construcción y Servicios (ACS SM) , via 52.3%-held Hochtief (HOT GR), is offering $22/share for all CIMIC (CIM AU) shares it does not own. The Offer is unconditional.
- The Offer Price is a 33% premium to last close. The price will not be increased.
- Hochtief intends to exercise its right to on-market purchases. CIMIC’s board has yet to comment on the Offer.
CIMIC (CIM AU) Replacement in ASX200
- Hochtief AG (HOT GR) has finally launched an unconditional offer for the rest of CIMIC Group Ltd (CIM AU) (where it already owns 78.58%).
- As David Blennerhassett writes in Hochtief’s Unconditional Offer For CIMIC, this should be a done deal. Completion would free up a place in the S&P/ASX200.
- This looks to be one of the earlier Q2 intra-quarter changes, but there are technicalities.
Before it’s here, it’s on Smartkarma
