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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kfc-holdings-japan-ltd" target="_blank" data-smartkarma-citation="entities:12358:1" rel="noopener">Kfc Holdings Japan (9873 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/carlyle-group-inc-the" target="_blank" data-smartkarma-citation="entities:33402:1" rel="noopener">Carlyle Group / (CG US)</a> at JPY6,500 per share, a 20.4% premium to the last close. </li>
<li>The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 31.54% ownership ratio.</li>
<li>Due to the <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a> irrevocable, the minimum acceptance condition requires a 48.6% minority acceptance rate. The acceptance condition is achievable as the offer is a knockout bid. </li>
</ul>



Kfc Holdings Japan (9873 JP) has recommended a tender offer from Carlyle Group / (CG US) at JPY6,500 per share, a 20.4% premium to the last close. 
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 31.54% ownership ratio.
Due to the Mitsubishi Corp (8058 JP) irrevocable, the minimum acceptance condition requires a 48.6% minority acceptance rate. The acceptance condition is achievable as the offer is a knockout bid. 


KFC Holdings Japan (9873 JP): Carlyle Finger Lickin' Tender Offer at JPY6,500

<ul>
<li>The Nikkei reports that Carlyle is in the final stages of buying <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a>’s 35% stake in <a href="https://www.smartkarma.com/entities/kfc-holdings-japan-ltd" target="_blank" data-smartkarma-citation="entities:12358:1" rel="noopener">Kfc Holdings Japan (9873 JP)</a>, which will result in a tender offer. </li>
<li>The structure will likely be similar to the <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI Corp (9433 JP)</a>/ <a href="https://www.smartkarma.com/entities/lawson-inc" target="_blank" data-smartkarma-citation="entities:1040:1" rel="noopener">Lawson Inc (2651 JP)</a> tender, where MitCorp provides an irrevocable NOT to accept but vote for share consolidation.</li>
<li>The shares have been up 33.6% since Nikkei flagged the sale on 28 February. KFC Japan will trade in line with peers’ multiples at a JPY5,700 offer.  </li>
</ul>


The Nikkei reports that Carlyle is in the final stages of buying Mitsubishi Corp (8058 JP)’s 35% stake in Kfc Holdings Japan (9873 JP), which will result in a tender offer. 
The structure will likely be similar to the KDDI Corp (9433 JP)/ Lawson Inc (2651 JP) tender, where MitCorp provides an irrevocable NOT to accept but vote for share consolidation.
The shares have been up 33.6% since Nikkei flagged the sale on 28 February. KFC Japan will trade in line with peers’ multiples at a JPY5,700 offer.  


KFC Holdings Japan (9873 JP): Carlyle Edging Towards a Tender Offer

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.

<ul>
<li>Many LGBTQ have been harassed during their job search, and while hiring managers are under-prepared, Monogatari Corporation is one of the few companies that is committed to LGBTQ human rights.</li>
<li>Monogatari Corporation believes that the diversity of individuals is the foundation for creating value, and that a series of individual differentiation enhances the company's competitive advantage as a major differentiation.</li>
<li>Monogatari Corporation's high profit margins and sustained growth give hope that the hypothesis that "companies that care about sexual minorities are more profitable" may be supported.</li>
</ul>


Many LGBTQ have been harassed during their job search, and while hiring managers are under-prepared, Monogatari Corporation is one of the few companies that is committed to LGBTQ human rights.
Monogatari Corporation believes that the diversity of individuals is the foundation for creating value, and that a series of individual differentiation enhances the company's competitive advantage as a major differentiation.
Monogatari Corporation's high profit margins and sustained growth give hope that the hypothesis that "companies that care about sexual minorities are more profitable" may be supported.


A Company in Japan Confirms That "Companies that Take Care of Sexual Minorities Are More Profitable"

Research from Mita Securities, Mita Securities

Mita Securities

Research from Mita Securities

Mita Securities provides a full scale diversified investment banking and financial services. A comprehensive investment banking department, specializes in rights offerings advisory, take-over bids agents, M&A etc. Including a proprietary trading desk, and wealth management department that offers brokerage, custody, real estate, and full proxy services.

Equity Bottom-Up

<ul><li>We update our earnings forecast for Monogatari Corporation (3097, the company) and fine-tune our target price to 8,900 yen</li><li>Progress toward the company’s full-year guidance was 69% for sales, 41% for OP, and 86% for RP. RP includes subsidy income of 2.656bn yen.</li><li>We lower our FY6/22 OP forecast from 5.012bn yen to 3.023bn yen (+18.3% YoY; OPM 4.1%; company guidance 4.798bn yen), but raise our RP forecast from 5.962bn yen to 6.240bn yen (+46.3% YoY; company guidance 5.500bn yen), assuming an upturn in subsidy income</li></ul>

We update our earnings forecast for Monogatari Corporation (3097, the company) and fine-tune our target price to 8,900 yenProgress toward the company’s full-year guidance was 69% for sales, 41% for OP, and 86% for RP. RP includes subsidy income of 2.656bn yen.We lower our FY6/22 OP forecast from 5.012bn yen to 3.023bn yen (+18.3% YoY; OPM 4.1%; company guidance 4.798bn yen), but raise our RP forecast from 5.962bn yen to 6.240bn yen (+46.3% YoY; company guidance 5.500bn yen), assuming an upturn in subsidy income

Monogatari Corporation (3097): Evolving from King of Japanese BBQ to King of Food Service

<ul><li>Same-store sales for company-owned stores were 141.7% vs. May 2021 (123.9% for April), 227.3% vs. May 2020 (743.9% for April), and 110.5% vs. May 2019 (102.7% for April).</li><li><p>May sales were extremely strong, and the impression is positive.</p></li><li>The company does not plan to revise prices for Yakiniku King. The company believes that it can control the cost of sales ratio by optimizing the menu mix, adjusting the portion volume per dish, improving the handling of ingredients, and enhancing the side menu</li></ul>

Same-store sales for company-owned stores were 141.7% vs. May 2021 (123.9% for April), 227.3% vs. May 2020 (743.9% for April), and 110.5% vs. May 2019 (102.7% for April).May sales were extremely strong, and the impression is positive.The company does not plan to revise prices for Yakiniku King. The company believes that it can control the cost of sales ratio by optimizing the menu mix, adjusting the portion volume per dish, improving the handling of ingredients, and enhancing the side menu

Monogatari Corporation (3097): Extremely Strong May Sales; Small Meeting for Sell-Side Analysts

Japan

Monogatari Corporation operates a restaurant chain.  The Company's restaurants include Japanese, BBQ, noodle, and Japanese-style pancake restaurant.

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Monogatari Corp (3097 JP)

KFC Holdings Japan (9873 JP): Carlyle Finger Lickin' Tender Offer at JPY6,500

Due to the MitCorp irrevocable, the minimum acceptance condition requires a 48.6% minority acceptance rate. The acceptance condition is achievable...

Arun George

KFC Holdings Japan (9873 JP): Carlyle Edging Towards a Tender Offer

The shares have increased 33.6% since Nikkei flagged the sale on 28 February. KFC Japan will trade in line with peers’ multiples at a JPY5,700 offer.

Arun George

A Company in Japan Confirms That "Companies that Take Care of Sexual Minorities Are More Profitable"

I would like to discuss the issues on the October 23 Nikkei Newspaper article, ""LGBT Recruitment Without Prejudice: Parties in Charge,...

Metrical Inc

Monogatari Corporation (3097): Evolving from King of Japanese BBQ to King of Food Service

We update our earnings forecast for Monogatari Corporation (3097, the company) and fine-tune our target price to 8,900 yen

Mita Securities

Monogatari Corporation (3097): Extremely Strong May Sales; Small Meeting for Sell-Side Analysts

Same-store sales for company-owned stores were 141.7% vs. May 2021 (123.9% for April), 227.3% vs. May 2020 (743.9% for April), and 110.5% vs. May...

Mita Securities

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