IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<p>On 19 May, <a href="https://www.smartkarma.com/entities/sony-financial-holdings-inc" target="_blank" data-smartkarma-citation="entities:564:1" rel="noopener">Sony Financial Holdings (8729 JP)</a>/SFH announced a tender offer by <a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563:1" rel="noopener">Sony Corp (6758 JP)</a>, its parent company, which aims to make SFH a wholly-owned subsidiary. The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. Sony currently has a 65.04% ownership ratio in SFH. </p><div class="content-highlight"><p>The tender offer is set at JPY2,600 per share, which represents a 25.97% premium to the last trading price. The lower limit of the tender offer has been set to achieve a 66.67% ownership ratio. With just 1.62% ownership ratio required to meet the minimum threshold, this is a done deal. Hitting the minimum threshold will allow a minority squeeze-out. Put in another way, there is little that minorities can do if they think that terms are unattractive. For what it’s worth, we think that minorities are getting a poor deal. </p></div>

On 19 May, Sony Financial Holdings (8729 JP)/SFH announced a tender offer by Sony Corp (6758 JP), its parent company, which aims to make SFH a wholly-owned subsidiary. The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. Sony currently has a 65.04% ownership ratio in SFH. The tender offer is set at JPY2,600 per share, which represents a 25.97% premium to the last trading price. The lower limit of the tender offer has been set to achieve a 66.67% ownership ratio. With just 1.62% ownership ratio required to meet the minimum threshold, this is a done deal. Hitting the minimum threshold will allow a minority squeeze-out. Put in another way, there is little that minorities can do if they think that terms are unattractive. For what it’s worth, we think that minorities are getting a poor deal. 

Sony Financial’s Tender Offer from Sony