I know nothing about these transactions, nor their companies or histories, but in most "debt-to-equity swaps" not only are the vultures circling, they have already selected the bones they want to pick clean.
Debt-to-equity swaps are rarely used by vulture investors. Equity has far less legal protections than debt. Most debt-to-equity swaps are for restructuring purpose where debt owners take a hair cut in their investments and existing equity investors getting wiped out. This is not how vultures make their money.
This transaction is called equity injection where the value of the additional equity is negotiated between new and existed equity holders, which could be at a discount or premium, but there is no change in the debt obligations.
This being Japan you'd think the govt would step in before allowing their "crown jewel" (maybe a bit optimistic but these are household names) companies to be ripped apart by the Chinese. So the deals probably have a bit more meat than you infer.
The Chinese government knows how to exploit capitalism for their benefit. Don't be surprised to later find out that there's government money involved in all of these transactions.
You guys are way more up to speed on this than me.
China Silk Road, et al, is effectively saying, "Japan Display is worth 12.69% of $1.43B US." As opposed to 'equity injection' it smells like 'equity dissolution,' or discount/'haircut' as stated.
Suwa Holdings is essentially the 'new' JDI. Whatever is left of the IP, 'goodwill' and JOLED/other businesses is subject to being sold or spun-off. That's all I'm sayin' ... :)
"Japan Display was formed in 2012 by combining the LCD businesses of Hitachi Ltd, Toshiba Corp and Sony Corp in a deal brokered by the government. It went public in March 2014 and was worth more than 400 billion yen then. It is now worth 67 billion yen."
As noted, the last I knew about monitors/displays from 'Hitachi Ltd, Toshiba Corp and Sony Corp' they were making CRTs ...
We’ve updated our terms. By continuing to use the site and/or by logging into your account, you agree to the Site’s updated Terms of Use and Privacy Policy.
Facebook
Twitter
RSS
6 Comments
Back to Article
Smell This - Monday, April 15, 2019 - link
I know nothing about these transactions, nor their companies or histories, but in most "debt-to-equity swaps" not only are the vultures circling, they have already selected the bones they want to pick clean.
"It is what it is"
wr3zzz - Monday, April 15, 2019 - link
Debt-to-equity swaps are rarely used by vulture investors. Equity has far less legal protections than debt. Most debt-to-equity swaps are for restructuring purpose where debt owners take a hair cut in their investments and existing equity investors getting wiped out. This is not how vultures make their money.This transaction is called equity injection where the value of the additional equity is negotiated between new and existed equity holders, which could be at a discount or premium, but there is no change in the debt obligations.
Cullinaire - Monday, April 15, 2019 - link
This being Japan you'd think the govt would step in before allowing their "crown jewel" (maybe a bit optimistic but these are household names) companies to be ripped apart by the Chinese. So the deals probably have a bit more meat than you infer.Kamus - Tuesday, April 16, 2019 - link
The Chinese government knows how to exploit capitalism for their benefit. Don't be surprised to later find out that there's government money involved in all of these transactions.Smell This - Tuesday, April 16, 2019 - link
You guys are way more up to speed on this than me.China Silk Road, et al, is effectively saying, "Japan Display is worth 12.69% of $1.43B US." As opposed to 'equity injection' it smells like 'equity dissolution,' or discount/'haircut' as stated.
Suwa Holdings is essentially the 'new' JDI. Whatever is left of the IP, 'goodwill' and JOLED/other businesses is subject to being sold or spun-off. That's all I'm sayin' ... :)
► https://www.investing.com/news/stock-market-news/j...
"Japan Display was formed in 2012 by combining the LCD businesses of Hitachi Ltd, Toshiba Corp and Sony Corp in a deal brokered by the government. It went public in March 2014 and was worth more than 400 billion yen then. It is now worth 67 billion yen."
As noted, the last I knew about monitors/displays from 'Hitachi Ltd, Toshiba Corp and Sony Corp' they were making CRTs ...
[email protected] - Friday, April 19, 2019 - link
Wow nice man keep doing this. <a href="https://licensenew.com/"> licensenew.com </a>