bullish
S Line (9078 JP) TOB/MBO at 0.57x Book - Wrong Price by Far but Only AGGRESSIVE Activism Blocks It
498 Views15 May 2024 20:16
S Line (9078): yet another logistics company up for grabs. This is an MBO at 0.57x book where the 12% owner is able to borrow the entire EV to fund the purchase at sub-10x EV/FCF. Just a wrong price.
What is covered in the Full Insight:
- S Line Co Ltd MBO Announcement
- Deal Details
- Fairness of the Deal
- CEO's Funding for the Deal
- Potential for Activism
Boomeranged on Tue, 25 Jun 2024 11:16
S Line's MBO at 0.57x book is VERY low compared to other recent deals in logistics space. Embarrassingly so. I noted it needed aggressive activism to block this because there were so many irrevocables (which are not binding in Japan).
Now the stock is up 9% today and 14.7% through terms on 3 days of strong volume. I expect we may see a 5% filing post-close. And our "aggressive activism."
SUMMARY
(Sign Up to Access)Get started on the Smartkarma Research Network with a complimentary Preview Pass to:
- Unlock all research summaries
- Follow top, independent analysts
- Receive personalised alerts and emails
- Access Briefings, Analytics, and Events
Upgrade anytime to our paid plans for full-length research, real-time analyst discussions, and more.
Join a thriving community of 45,000+ investors, including the top global asset managers managing over $13trn in assets.
or
Already have an account? Sign In Now
Full Insight
(Paid Plans Only, 19-minute read)
Discussions
(Paid Plans Only)
x