Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">Aeon Co Ltd (8267 JP)</a>-controlled supermarket companies <a href="https://www.smartkarma.com/entities/fuji-co-ltd-ehime" target="_blank" data-smartkarma-citation="entities:11419:1" rel="noopener">Fuji Co Ltd (8278 JP)</a> ("Fuji") and <a href="https://www.smartkarma.com/entities/maxvalu-nishinihon-co-ltd" target="_blank" data-smartkarma-citation="entities:13743:1" rel="noopener">Maxvalu Nishinihon (8287 JP)</a> ("MVNN") announced the Exchange Ratio for the first stage of their integration process.</li>
<li>This Deal is part of a long-term restructuring exercise carried out by Aeon. I previously discussed this Transaction in <a href="https://www.smartkarma.com/insights/fuji-8278-maxvalu-nishinihon-8287-aeon-family-supermarket-integration" target="_blank" data-smartkarma-citation="insights:57161" rel="noopener">Fuji (8278) &amp; Maxvalu Nishinihon (8287): Aeon Family Supermarket Integration</a>.  </li>
<li>Below is a look at the details of the latest update to this Transaction.</li>
</ul>


Today, Aeon Co Ltd (8267 JP)-controlled supermarket companies Fuji Co Ltd (8278 JP) ("Fuji") and Maxvalu Nishinihon (8287 JP) ("MVNN") announced the Exchange Ratio for the first stage of their integration process.
This Deal is part of a long-term restructuring exercise carried out by Aeon. I previously discussed this Transaction in Fuji (8278) &amp; Maxvalu Nishinihon (8287): Aeon Family Supermarket Integration.  
Below is a look at the details of the latest update to this Transaction.


Fuji (8278) & Maxvalu Nishinihon (8287): Merger Ratio Announced. Deal Done in 3 Months.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

<ul>
<li>There are currently 47  - mostly firm - transactions currently being discussed and analysed on Smartkarma.</li>
<li>Three new deals this week: <a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a>'s Scheme Offer; and <a href="https://www.smartkarma.com/entities/shin-keisei-electric-railway" target="_blank" data-smartkarma-citation="entities:6262:1" rel="noopener">Shin Keisei Electric (9014 JP)</a> cleaning up two of its subsidiaries, </li>
<li>Keys updates took place for: <a href="https://www.smartkarma.com/entities/australian-pharmaceutical-industries-limited" target="_blank" data-smartkarma-citation="entities:19399:1" rel="noopener">Australian Pharmaceutical Industries (API AU)</a>, <a href="https://www.smartkarma.com/entities/hitachi-metals-ltd" target="_blank" data-smartkarma-citation="entities:8561:1" rel="noopener">Hitachi Metals (5486 JP)</a>, and <a href="https://www.smartkarma.com/entities/golden-throat-holdings-group" target="_blank" data-smartkarma-citation="entities:22664:1" rel="noopener">Golden Throat Holdings (6896 HK)</a>.</li>
</ul>


There are currently 47  - mostly firm - transactions currently being discussed and analysed on Smartkarma.
Three new deals this week: Razer Inc (1337 HK)'s Scheme Offer; and Shin Keisei Electric (9014 JP) cleaning up two of its subsidiaries, 
Keys updates took place for: Australian Pharmaceutical Industries (API AU), Hitachi Metals (5486 JP), and Golden Throat Holdings (6896 HK).


Asia-Pac Weekly Risk Arb Summary: Razer, Daibiru, Utoc, Aussie Pharma, Hitachi Metals, Golden Throat

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Thematic (Sector/Industry)

<ul>
<li>Half-Year results are coming in for the largest retailers showing that fundamentals are more important than ever. Aeon demonstrated improvements after a tough 2020.</li>
<li>Seven &amp; I reported a jump in revenues, thanks to its recent acquisition in the USA. The group may consider finally selling less successful parts of its business at home.</li>
<li>Life, the largest supermarket, recorded flat revenues but is planning a big investment in stores and systems in preparation for anticipated changes to shopping behaviour.</li>
</ul>


Half-Year results are coming in for the largest retailers showing that fundamentals are more important than ever. Aeon demonstrated improvements after a tough 2020.
Seven &amp; I reported a jump in revenues, thanks to its recent acquisition in the USA. The group may consider finally selling less successful parts of its business at home.
Life, the largest supermarket, recorded flat revenues but is planning a big investment in stores and systems in preparation for anticipated changes to shopping behaviour.


Ups and Downs in Japanese Big Retail a Year After Covid Hit

<ul>
<li>Aeon is on the acquisition trail again and not only in the drugstore sector through its <a href="https://www.smartkarma.com/entities/welcia-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20895:1" rel="noopener">Welcia Holdings (3141 JP)</a> subsidiary.</li>
<li>Japan's biggest retailer also consolidated its hold on the island of Shikoku by increasing its stake in Fuji and will now own more than 20% of all retail sales.</li>
<li>Signalling its ambitions to carve out a large share of the discount market, Aeon also acquired the 100 YEN retailer, <a href="https://www.smartkarma.com/entities/can-do-co-ltd" target="_blank" data-smartkarma-citation="entities:6879:1" rel="noopener">Can Do Co Ltd (2698 JP).</a>
</li>
</ul>


Aeon is on the acquisition trail again and not only in the drugstore sector through its Welcia Holdings (3141 JP) subsidiary.
Japan's biggest retailer also consolidated its hold on the island of Shikoku by increasing its stake in Fuji and will now own more than 20% of all retail sales.
Signalling its ambitions to carve out a large share of the discount market, Aeon also acquired the 100 YEN retailer, Can Do Co Ltd (2698 JP).



Aeon Consolidates Through Fuji and Steps up Discounting Via Can Do

Equity Bottom-Up

<ul>
<li>The Matsumotokiyoshi and Cocokara Fine merger is now complete following almost two years of dealing, planning and company bonding.</li>
<li>The combined business creates the single biggest drugstore group in Japan, although the Tokyo-based partners have lost ground in the past year while others have grown strongly.</li>
<li>As a result, the lead is smaller than they previously expected – and will likely get smaller still. The good news is that profits should soar.</li>
</ul>


The Matsumotokiyoshi and Cocokara Fine merger is now complete following almost two years of dealing, planning and company bonding.
The combined business creates the single biggest drugstore group in Japan, although the Tokyo-based partners have lost ground in the past year while others have grown strongly.
As a result, the lead is smaller than they previously expected – and will likely get smaller still. The good news is that profits should soar.


Japan

AEON CO., LTD. operates general merchandise stores, supermarkets, and convenience stores throughout Japan. The Company is also engaged in women's and casual clothing store business, development business of commercial property, and financing service through the subsidiaries.

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Aeon Co Ltd (8267 JP)

Fuji (8278) & Maxvalu Nishinihon (8287): Merger Ratio Announced. Deal Done in 3 Months.

Aeon-controlled supermarket companies Fuji Co Ltd and Maxvalu Nishinihon announced the Exchange Ratio for their Merger. It doesn't seem wholly fair...

Janaghan Jeyakumar, CFA

Asia-Pac Weekly Risk Arb Summary: Razer, Daibiru, Utoc, Aussie Pharma, Hitachi Metals, Golden Throat

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Ups and Downs in Japanese Big Retail a Year After Covid Hit

Big retail in Japan showed improving results in 1H2021 as both Aeon and Seven & I boosted revenues although for very different reasons. Both remain...

Michael Causton

Aeon Consolidates Through Fuji and Steps up Discounting Via Can Do

Aeon continues to consolidate retail share. Its acquisition of Fuji will give it 20% share of all retail sales in Shikoku while its purchase of Can...

Michael Causton

Matsukiyo Cocokara: Together at Last

MatsukiyoCocokara may top the drugstore ranking post-merger but Welcia and Tsuruha have grown much faster and may take the lead again soon given...

Michael Causton

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