On July 27th, Alpine Electronics (6816) received an offer from Alps Electric (6770), which owns 40.43% of Alpine’s shares, to buy out the remainder for 0.68 shares of Alps for each share of Alpine.
Oasis Management Company of Hong Kong, the largest minority shareholder in Alpine with a stake of 9.24%, has stated in a press release today that minority investors are not getting a ‘fair deal’ and have launched a website protectalpine.com to make their case for a higher offer from Alps. Alpine is now trading at a small premium to the offer in the hope that Oasis will prevail, as they did recently with Panahome.
There are clear issues of corporate governance concerning the process which led to this offer and the 18-month period before the offer is effective, but we shall leave this to others better qualified than Japan Analytics to comment.
Rather, we shall look at Alpine’s financial statements through the lens of the App’s residual income valuation model.