Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>Early this morning, the Nikkei carried an article (<a href="https://asia.nikkei.com/Business/Business-Deals/Ex-Takeda-chairman-comes-out-against-Shire-purchase" target="_blank">English version</a>) saying that former <a href="https://www.smartkarma.com/entities/11747" target="_blank" data-smartkarma-citation="entities:11747:1">Takeda Pharmaceutical (4502 JP)</a> CEO and Chairman Kunio Takeda (joined Takeda right out of college in 1961, eventually president and CEO (from 1993 to 2009) and Chairman from 2003 to 2009) had put out through a spokesperson that he was against the deal. </p>
<p>This comes as "a surprise" because of the late date (proxies will generally be due in the next 2-3 days) but is not, strictly speaking, a surprise. Other media outlets like the FT had suggested a couple of weeks ago (and it was believed in some corners for months before) that Kunio Takeda privately opposed the deal and leaned towards the opinion that it was a "high risk deal", not necessarily taking the view of other family member Kazu Takeda (descendant of the family and Takeda voice in the TTBF) who had opposed the deal, partly on the grounds that Takeda <em>“will no longer be a Japanese company”</em> (also FT) if it closes the deal.</p>
<p>The statement by Kunio Takeda suggests less of a nationalistic bent (Kazu Takeda has seemed to lean on the nationalist tone, as has some of the Takeda family opposition to foreigners in past) and more of a thoughtful angle. But in his heyday, he was well-regarded for being aggressive, even in buying businesses overseas.</p>
<blockquote>
<p>A company with no sense of crisis and no appetite for reform will eventually lose the battle against time and disappear.  <strong>Takeda Kunio, Fortune Magazine, 2003</strong></p>
</blockquote>
<p>What does this mean for the shareholder vote on December 5th?</p>
<p>There are precedents to revisit. They are worth a look.</p>
<p>There are also considerations about how the shareholder register has changed (i.e. what you can see vs what you cannot see, and how people vote).</p>
<p></p>
<table class="table table-striped">
<tbody>
<tr>
<td colspan="2">
<h2>Previous Insights in This Series</h2>
</td>
</tr>
<tr>
<td>9-May</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-i-on-drug-deals-and-deckchairs" target="_blank" data-smartkarma-citation="insights:20087">Takeda/Shire I : On Drug Deals and Deckchairs</a></td>
</tr>
<tr>
<td>2-July</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-ii-drugs-divvies-and-agm-votes" target="_blank" data-smartkarma-citation="insights:21733">Takeda/Shire II:  Drugs, Divvies, and AGM Votes</a></td>
</tr>
<tr>
<td>1-Oct</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-iii-egm-announced-drug-deal-coming-together" target="_blank" data-smartkarma-citation="insights:24574">Takeda/Shire III : EGM Announced, Drug Deal Coming Together</a></td>
</tr>
<tr>
<td>19-Nov</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-iv-making-drug-deals" target="_blank" data-smartkarma-citation="insights:26018">Takeda/Shire IV:  Making Drug Deals</a></td>
</tr>
</tbody>
</table>

Early this morning, the Nikkei carried an article (English version) saying that former Takeda Pharmaceutical (4502 JP) CEO and Chairman Kunio Takeda (joined Takeda right out of college in 1961, eventually president and CEO (from 1993 to 2009) and Chairman from 2003 to 2009) had put out through a spokesperson that he was against the deal. 
This comes as "a surprise" because of the late date (proxies will generally be due in the next 2-3 days) but is not, strictly speaking, a surprise. Other media outlets like the FT had suggested a couple of weeks ago (and it was believed in some corners for months before) that Kunio Takeda privately opposed the deal and leaned towards the opinion that it was a "high risk deal", not necessarily taking the view of other family member Kazu Takeda (descendant of the family and Takeda voice in the TTBF) who had opposed the deal, partly on the grounds that Takeda “will no longer be a Japanese company” (also FT) if it closes the deal.
The statement by Kunio Takeda suggests less of a nationalistic bent (Kazu Takeda has seemed to lean on the nationalist tone, as has some of the Takeda family opposition to foreigners in past) and more of a thoughtful angle. But in his heyday, he was well-regarded for being aggressive, even in buying businesses overseas.

A company with no sense of crisis and no appetite for reform will eventually lose the battle against time and disappear.  Takeda Kunio, Fortune Magazine, 2003

What does this mean for the shareholder vote on December 5th?
There are precedents to revisit. They are worth a look.
There are also considerations about how the shareholder register has changed (i.e. what you can see vs what you cannot see, and how people vote).





Previous Insights in This Series



9-May
Takeda/Shire I : On Drug Deals and Deckchairs


2-July
Takeda/Shire II:  Drugs, Divvies, and AGM Votes


1-Oct
Takeda/Shire III : EGM Announced, Drug Deal Coming Together


19-Nov
Takeda/Shire IV:  Making Drug Deals




Takeda/Shire V: Tradition vs the Next Generation, Former Chairman Doesn't Support But...

Japan

MELCO HOLDINGS INC. is a holding company which manages computer peripheral equipment manufacturing subsidiaries.  The Company's subsidiaries develop and produce memory and storage devices and network equipment.

MIMAKI ENGINEERING CO.,LTD. manufactures and sells industrial printers, cutting plotters and related products.

Maxell Ltd develops a diverse portfolio of media devices. The Company's products include batteries, DVD's, memory storage, optical lenses, headphones and other accessories.

Eizo Corp develops, designs, manufactures, and markets computer displays and monitors for amusement products.  The Company's products include liquid crystal displays (LCD) and cathode ray tube (CRT) displays.

RISO KAGAKU CORPORATION is a manufacturer of copying and printing machines for office, home, and educational use.  The Company specializes in lithograph printers and also produces software, computer interfaces, and peripherals such as sorters, card counters, and sheet feeders.

Wacom Co., Ltd. manufactures pen tablets utilizing electronic pen and multitouch technologies. The Company's pen tablets are used in various fields, including film making, industrial  design, medical, education and financials. Wacom also manufactures components for smart phones and tablets.

MUTOH HOLDINGS CO., LTD. designs, manufactures, and markets drafting equipment, computers, and computer software.  The Company's products include computer-aided design (CAD) systems, pen-based components, large format graphics printers, plotters, and sign cutters.

NAGANO KEIKI CO., LTD. manufactures measuring instruments such as pressure gauges, transmitters, and temperature gauges primarily used for automobiles. The Company also makes equipment for the semiconductor industry, such as pressure regulators, transducers, digital pressure gauges, and power supplies.

IRISO ELECTRONICS CO., LTD. produces precision metal pins and high-technology connectors for printed circuit boards used in a range of electrical equipment. The Company also sells electrical lead wires.

Nippon Signal Company, Limited. manufactures and sells traffic signals. The Company also develops control system equipment such as ticket vending machines, automatic passenger gates, and automatic check in machines. Nippon Signal's products are used for railway stations, airports, and parking lots.

CMC Magnetics Corporation manufactures and markets digital storage media and magnetic disks.  The Company's products include CD-R (Compact Disc Recordable), CD-RW (Compact Disc Rewritable), DVD-R (Digital Video Disc Recordable), DVD-RAM (Digital Video Disc Random Access Memory), floppy disks, video tapes, and CD (Compact Disc) jewel boxes.  CMC also provides replication services.

Shenzhen Rapoo Technology Company Limited manufactures mouse, keyboards, tools and dies, audio products and accessories, computer games and related peripheral products. The company also develops computer software.

KYE Systems Corporation manufactures and markets mouse devices, scanners, graphic tablets, joysticks, keyboards as well as networking, communication, and multi-media products.  The Company markets its products under the Genius brand name.

Ritek Corporation manufactures and markets digital storage media, electro-optical products, and electronic components.  The Company's products include CD-R (Compact Disc Recordable), CD-RW (Compact Disc Rewritable), DVD-R (Digital Video Disc Recordable), DVD-RAM (Digital Video Disc Random Access Memory), ITO (Indium Tin OxideGlass), and EL Lamp (Electro-Luminescent Lamp).

Shandong New Beiyang Information Technology Co., Ltd. researches, develops, and sells thermal printer and scanning products. The Company's products include receipt printers, label printers and other printers.

Shandong New Beiyng Infrmt Tchlgy (002376 CH)

Wuhan Tianyu Information Industry Company Limited develops, produces, sells and provides services for smart card and related application systems.  The Company's main products are various smart cards including communication smart cards, financial IC cards, city cards, mobile multimedia broadcasting conditional access cards, tax cards, social security cards, fuel cards etc.

Eastman Kodak Company develops, manufactures, and markets imaging products for businesses.  The Company provides disruptive technologies and imaging solutions in the product goods packaging, functional and digital printing markets.  Eastman Kodak also offers products and services in Entertainment Imaging and Commercial Films.

Immersion Corporation develops and licenses hardware and software technologies that enable users to interact with computers using their sense of touch.  The Company's patented TouchSense technologies enable computer peripheral devices to deliver tactile sensations that correspond to on-screen events.

Shenzhen Sinovatio Technology Co., Ltd. produces communication products. The Company develops, manufactures, and sells broadband and mobile network, network content security, big data operation, and other related products. Shenzhen Sinovatio Technology also provides product installation, commissioning, training, and other technical services.

Shenzhen Sinovatio Technology (002912 CH)

Leadtek Research Inc. manufactures and markets communication equipments, computer and peripheral products, industrial control systems, and toys.  The Company also designs and trades information software.

Roland DG Corporation manufactures color printers and computer related products. The Company's product lines include color printers, vinyl cutters, 3D machines,  and software.  Roland DG has group companies in North and South America, Oceania, Europe.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Roland DG Corp (6789 JP)

Takeda/Shire V: Tradition vs the Next Generation, Former Chairman Doesn't Support But...

Early this morning, the Nikkei carried an article (English version) saying that former Takeda Pharmaceutical (4502 JP) CEO and Chairman Kunio...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)