Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

The Nikkei reported Thursday morning that <a href="https://www.smartkarma.com/entities/320" target="_blank" data-smartkarma-citation="entities:320:1">FamilyMart UNY Holdings Co Ltd (8028 JP)</a> would lift its stake in <a href="https://www.smartkarma.com/entities/19614" target="_blank" data-smartkarma-citation="entities:19614:1">Kanemi Co Ltd (2669 JP)</a> from 26.05% (of voting rights) to 52.47% by the end of July by buying shares from <a href="https://www.smartkarma.com/entities/18448" target="_blank" data-smartkarma-citation="entities:18448:1">Itochu Corp (8001 JP)</a> (Familymart UNY Holdings' de facto parent, which owns 10%) and other individual holders - mostly founding family members. In <a href="https://www.smartkarma.com/insights/japan-cvs-sector-boots-on-the-ground" target="_blank" data-smartkarma-citation="insights:8730">Japan CVS Sector: Boots On the Ground</a> published in February, I discussed what Familymart UNY and Itochu (and <a href="https://www.smartkarma.com/entities/1041" target="_blank" data-smartkarma-citation="entities:1041:1">Seven &amp; I Holdings Co Ltd (3382 JP)</a> and <a href="https://www.smartkarma.com/entities/1040" target="_blank" data-smartkarma-citation="entities:1040:1">Lawson Inc (2651 JP)</a>) might do going forward after the completion of various large consolidations in the sector.One move mentioned was <a href="https://www.smartkarma.com/entities/3896" target="_blank" data-smartkarma-citation="entities:3896:1">Ucs Co Ltd (8787 JP)</a>.  The other was <a href="https://www.smartkarma.com/entities/19614" target="_blank" data-smartkarma-citation="entities:19614:1">Kanemi Co Ltd (2669 JP)</a>. Given that as of the last full fiscal year 86.5% of Kanemi sales were to UNY Familymart Holdings, this makes sense.Both have outperformed their parent since that time;  Kanemi by ~13% and UCS by ~45%.<div class="content-highlight">What Plans Might Itochu and Familymart Have?<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/028/866/original/2017_Kanemi.png?1498714348" class="editor-image img-responsive" data-smartkarma-image-id="28866"></figure></div>The prospects are interesting medium-term, but there are other questions short-term.More below the fold for subscribers...

The Nikkei reported Thursday morning that FamilyMart UNY Holdings Co Ltd (8028 JP) would lift its stake in Kanemi Co Ltd (2669 JP) from 26.05% (of voting rights) to 52.47% by the end of July by buying shares from Itochu Corp (8001 JP) (Familymart UNY Holdings' de facto parent, which owns 10%) and other individual holders - mostly founding family members. In Japan CVS Sector: Boots On the Ground published in February, I discussed what Familymart UNY and Itochu (and Seven &amp; I Holdings Co Ltd (3382 JP) and Lawson Inc (2651 JP)) might do going forward after the completion of various large consolidations in the sector.One move mentioned was Ucs Co Ltd (8787 JP).  The other was Kanemi Co Ltd (2669 JP). Given that as of the last full fiscal year 86.5% of Kanemi sales were to UNY Familymart Holdings, this makes sense.Both have outperformed their parent since that time;  Kanemi by ~13% and UCS by ~45%.What Plans Might Itochu and Familymart Have?The prospects are interesting medium-term, but there are other questions short-term.More below the fold for subscribers...

FamilyMart to Lift Stake in Kanemi - De Facto Takeover, Minorities Beware

Japan

Kanemi Co., Ltd. produces and retails lunch boxes, daily dishes, and sushi dishes.  The Company wholesales its products to supermarkets.  Kanemi also provides management services for franchisees.

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FamilyMart to Lift Stake in Kanemi - De Facto Takeover, Minorities Beware

The Nikkei reported Thursday morning that FamilyMart UNY Holdings Co Ltd (8028 JP) would lift its stake in Kanemi Co Ltd (2669 JP) from 26.05% (of...

Travis Lundy