Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today, just before the close, the Nikkei sprung a headline saying <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI Corp (9433 JP)</a> would take over <a href="https://www.smartkarma.com/entities/lawson-inc" target="_blank" data-smartkarma-citation="entities:1040:1" rel="noopener">Lawson Inc (2651 JP)</a>. The stock immediately headed to limit up. </li>
<li>Post-Close, details emerged. KDDI will buy the 50% that MitCorp does not own, this will become a 50/50 JV. TOB launch at ¥10,360 will be in April. Squeezeout in September.</li>
<li>This appears to be the Next Step in Lawson's Big Boots Adventure. The premium is too light. The price is too low. And that is not counting the synergies.</li>
</ul>


Today, just before the close, the Nikkei sprung a headline saying KDDI Corp (9433 JP) would take over Lawson Inc (2651 JP). The stock immediately headed to limit up. 
Post-Close, details emerged. KDDI will buy the 50% that MitCorp does not own, this will become a 50/50 JV. TOB launch at ¥10,360 will be in April. Squeezeout in September.
This appears to be the Next Step in Lawson's Big Boots Adventure. The premium is too light. The price is too low. And that is not counting the synergies.


The Next Step in Lawson's Big Boots Adventure - KDDI and MitCorp to Take It Private

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. 

Equity Capital Markets

<ul>
<li>Seijo Ishii is Japan’s leading premium supermarket chain with some 200 stores and is being prepped for an IPO by its owner, Lawson. </li>
<li>After strong growth during Covid, sales have now flattened and the company’s large import business has suffered from higher costs due to the weak Yen and global crises.</li>
<li>To maintain its market position, it is reducing imports of packaged goods and increasing volumes of imported, high-end raw materials – and then manufacturing products itself.</li>
</ul>


Seijo Ishii is Japan’s leading premium supermarket chain with some 200 stores and is being prepped for an IPO by its owner, Lawson. 
After strong growth during Covid, sales have now flattened and the company’s large import business has suffered from higher costs due to the weak Yen and global crises.
To maintain its market position, it is reducing imports of packaged goods and increasing volumes of imported, high-end raw materials – and then manufacturing products itself.


Lawson: Seijo Ishii Producing at Home to Beat Inflation and Weak Yen

Thematic (Sector/Industry)

<ul>
<li>Major wholesalers in food, pharmaceuticals and books continue to prosper due to their role in both serving and protecting fragmented distribution channels.</li>
<li>Profits returned last year as clients picked themselves up after Covid, but as inflation sets in, these middlemen are being squeezed by both manufacturers and retailers and profits may slump.</li>
<li>They now need to offer an ever increasing array of value-added services to continue to grow and not all have the capability. More M&amp;A may be on the cards.</li>
</ul>


Major wholesalers in food, pharmaceuticals and books continue to prosper due to their role in both serving and protecting fragmented distribution channels.
Profits returned last year as clients picked themselves up after Covid, but as inflation sets in, these middlemen are being squeezed by both manufacturers and retailers and profits may slump.
They now need to offer an ever increasing array of value-added services to continue to grow and not all have the capability. More M&amp;A may be on the cards.


Major Japan Wholesalers up 2.8% in 2021, but Problems Looming

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

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.

Daiwa House Logistics Trust / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/daiwa-house-logistics-trust" target="_blank" data-smartkarma-citation="entities:35020:1" rel="noopener">Daiwa House Logistics Trust (DHLT SP)</a> has launched an SGX IPO to raise gross proceeds of S$464 million ($343 million) at an IPO price of S$0.80 per unit. </li>
<li>DHLT offers an attractive value proposition consisting of a blue-chip tenant base, a staggered lease expiry profile, manageable tenant concentration risk, a growth pipeline and low capex.</li>
<li>DHLT offers exposure to the only Japan pure-play REIT listed in Singapore.</li>
</ul>



Daiwa House Logistics Trust (DHLT SP) has launched an SGX IPO to raise gross proceeds of S$464 million ($343 million) at an IPO price of S$0.80 per unit. 
DHLT offers an attractive value proposition consisting of a blue-chip tenant base, a staggered lease expiry profile, manageable tenant concentration risk, a growth pipeline and low capex.
DHLT offers exposure to the only Japan pure-play REIT listed in Singapore.


Daiwa House Logistics Trust IPO: The Flow of Things

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<p>In my previous article, "Parent-Subsidiary Listing and Investment Strategy," I pointed out that the parent company is likely to adopt such a management strategy because it can use its excess cash reserves to boost its profitability by making a highly profitable subsidiary a wholly owned subsidiary. In fact, in a previous article, "NTT Docomo TOB and Aftermath," it was thought that the aforementioned management strategy would be effective for the parent company, NTT, but given the company's history as a public company and the legal environment, there seemed hurdles that must be overcome to make NTT Docomo a wholly owned subsidiary, and it is not likely to be easy. However, the TOB was successful. In the unique Japanese practice of parent-subsidiary listings, there have been a number of moves to eliminate this practice. As I mentioned above, the conditions for a parent company to make a subsidiary its wholly owned subsidiary are (1) the subsidiary's profitability is higher (than that of the parent company), and (2) the parent company has a very large amount of excess cash reserves (there are no effective investment opportunities to use the cash). In this article, I would like to consider the opposite of these management strategies.</p>

In my previous article, "Parent-Subsidiary Listing and Investment Strategy," I pointed out that the parent company is likely to adopt such a management strategy because it can use its excess cash reserves to boost its profitability by making a highly profitable subsidiary a wholly owned subsidiary. In fact, in a previous article, "NTT Docomo TOB and Aftermath," it was thought that the aforementioned management strategy would be effective for the parent company, NTT, but given the company's history as a public company and the legal environment, there seemed hurdles that must be overcome to make NTT Docomo a wholly owned subsidiary, and it is not likely to be easy. However, the TOB was successful. In the unique Japanese practice of parent-subsidiary listings, there have been a number of moves to eliminate this practice. As I mentioned above, the conditions for a parent company to make a subsidiary its wholly owned subsidiary are (1) the subsidiary's profitability is higher (than that of the parent company), and (2) the parent company has a very large amount of excess cash reserves (there are no effective investment opportunities to use the cash). In this article, I would like to consider the opposite of these management strategies.

Japan

Mitsubishi Shokuhin Co.,Ltd. is a wholesaler of processed food. The Company sells a varietyof groceries including canned products, dried food, frozen food, pet food, beverages, and liquors.

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Mitsubishi Shokuhin (7451 JP)

The Next Step in Lawson's Big Boots Adventure - KDDI and MitCorp to Take It Private

KDDI has announced a deal to buy out the remainder of the 50% not owned by MitCorp. They will split the company 50/50 going forward. Small premium....

Travis Lundy

Lawson: Seijo Ishii Producing at Home to Beat Inflation and Weak Yen

Japan's leading premium supermarket chain, Seijo Ishii, is preparing for an IPO. To stay competitive, the company is reducing imports while...

Michael Causton

Major Japan Wholesalers up 2.8% in 2021, but Problems Looming

Wholesalers in Japan had a good year last year. The biggest firms like Medipal may prosper but there are challenges for the sector which could...

Michael Causton

Daiwa House Logistics Trust IPO: The Flow of Things

DHLT has launched an SGX IPO to raise gross proceeds of S$464 million ($343 million). Overall, we believe that DHLT offers an attractive value...

Arun George

Japan's Governance: TOB of Own Stock

More listed subsidiaries will acquire own stock from their parent companies through TOB. It's not easy to dissolve a parent-subsidiary listing, but...

Metrical Inc

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The Next Step in Lawson's Big Boots Adventure - KDDI and MitCorp to Take It Private

KDDI has announced a deal to buy out the remainder of the 50% not owned by MitCorp. They will split the company 50/50 going forward. Small premium....

Travis Lundy

Lawson: Seijo Ishii Producing at Home to Beat Inflation and Weak Yen

​Japan's leading premium supermarket chain, Seijo Ishii, is preparing for an IPO. To stay competitive, the company is reducing imports while...

Michael Causton

Major Japan Wholesalers up 2.8% in 2021, but Problems Looming

Wholesalers in Japan had a good year last year. The biggest firms like Medipal may prosper but there are challenges for the sector which could...

Michael Causton

Daiwa House Logistics Trust IPO: The Flow of Things

DHLT has launched an SGX IPO to raise gross proceeds of S$464 million ($343 million). Overall, we believe that DHLT offers an attractive value...

Arun George

Japan's Governance: TOB of Own Stock

More listed subsidiaries will acquire own stock from their parent companies through TOB. It's not easy to dissolve a parent-subsidiary listing, but...

Metrical Inc

Japan's leading premium supermarket chain, Seijo Ishii, is preparing for an IPO. To stay competitive, the company is reducing imports while...