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."
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