Japan

In today’s briefing:

Quiddity Leaderboard JPX-Nikkei 400: End-May 2023
Canon NanoImprint. EUV Slayer or Damp Squib?
Kawasaki Heavy Ind (7012) | Building a Hydrogen Society
Golf Digest Online (3319 JP) – Follow-Up Q1 FY2023/12
How Long Will Small Modifications Continue, Avoiding Discussion of the Essential Issues?

Quiddity Leaderboard JPX-Nikkei 400: End-May 2023

By Janaghan Jeyakumar, CFA

The JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted (capped) market-value-weighted index composed of 400 constituents.
A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to be announced in early August 2023 based on trading data as of end-May 2023.

Canon NanoImprint. EUV Slayer or Damp Squib?

Canon was late to market with its 193-nm immersion litho tool developed in 2007 causing it to cede the leading-edge litho race to ASML and, to a lesser extent, Nikon
The company has been working on NanoImprint Lithography as an alternative to EUV since 2004 & was supposedly fast tracked by the acquisition of Molecular Imprints in 2014
Commercial launch was originally slated for 2015. We’re still waiting. Why?

Kawasaki Heavy Ind (7012) | Building a Hydrogen Society

By Mark Chadwick

We are bullish on KHI and see around 40% upside for the share price
Over the next two years, we expect strong profit growth on recovery in aircraft parts, jet engines and military equipment
KHI is likely to be a key beneficiary of the Hydrogen economy and is well placed to build a new earnings driver over the next decade

Golf Digest Online (3319 JP) – Follow-Up Q1 FY2023/12

By Sessa Investment Research

On May 4, GOLFTEC announced the launch of “SkyTrak+,” a premium version of the award-winning and No.1 best-selling consumer launch monitor, now offering tour level accuracy and performance at a price that is still only a fraction of the top-ofthe-line commercial-use product.
Having largely completed the integration of SkyTrak business during the 1Q, the GOLFTEC ANYWHERE initiative is now going into full swing.
Since our 4Q FY22/12 Follow-up Report, GDO’s share price has declined another 12.7%, the decline from the peak now equal to the -64% seen in the case 1 shown below.

How Long Will Small Modifications Continue, Avoiding Discussion of the Essential Issues?

The number of workers expected to be in short supply could further expand if parameters change, such as decrease in working-age population due to further decline in the birth rate.
Even if the current foreign technical internship system relaxes the “no change of employer” restriction somewhat, changing the status of residence to permanent residence has not been points of discussion.
Government has avoided discussions that lead to the acceptance of foreign nationals based on permanent residency and as a result, the problems of population decline and worker shortages have worsened.

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May 30

Daily Brief Japan: Rakuten, Relia Inc, Rakuten Bank , Dynam Japan Holdings and more

In today’s briefing:

Rakuten (4755) – TSE Neglects Its Ad Hoc Powers – Less Bigly Index But Biglier Non-Index
Relia (4708 JP) Tender Offer Launches – STILL at the Wrong Price for the Wrong Reasons
Rakuten Bank (5838 JP) – Attractive Versus Domestic Neobank Peers, with Added Technical Support
Japan Pachinko Sector Meets Secular Decline with Pivots in Strategy

Rakuten (4755) – TSE Neglects Its Ad Hoc Powers – Less Bigly Index But Biglier Non-Index

The index announcements regarding the the changes to indices following the Rakuten (4755 JP) offering have been a bit weird.
Some of that may have to do with timing. Some is just weird
The result is that there is less to buy this week than I previously expected, and the buying gets dragged out longer.

Relia (4708 JP) Tender Offer Launches – STILL at the Wrong Price for the Wrong Reasons

In mid-January this year, Mitsui & Co Ltd (8031 JP) announced it would buy out minorities in Relia Inc (4708 JP) (longtime known as Moshi Moshi), a BPO/RPA/AI services company.
I said the deal was too cheap, with 44% upside to the midpoint of Target Advisor’s DCF fair value range. Investors needed to exercise their cowbell to get more.
Since then, TOPIX has returned ~15%, A peer basket 16%, H2 was possibly kitchen-sinked, but no Mar-2024 forecasts were provided. The Tender starts tomorrow. Noise is still warranted.

Rakuten Bank (5838 JP) – Attractive Versus Domestic Neobank Peers, with Added Technical Support

By Victor Galliano

Rakuten Bank’s imminent TOPIX index inclusion is a further share price support, to a neobank with a fundamentally attractive outlook
Rakuten Bank trades on a LTM PE multiple of 10.9x, LTM PBV ratio of 1.5x and an ROE of 13.8%, the best ROE to PBV ratio of its neobank peers
Aside from its premium long-run growth prospects and low prospective PEG ratio, Rakuten Bank is also the lowest cost to serve Japanese neobank

Japan Pachinko Sector Meets Secular Decline with Pivots in Strategy

By Howard J Klein

Universal Entertainment and Dynam Japan bave moved off total dependence on pure historic pachinko revenue flows as total market continues to slide.
Universal’s move to the casino sector as a core profit center and Dynam’s strong hall closure strategy are keys to future of the sector.
Dynam has been fighting off inflationary headwinds in opperating costs of their halls and sharp depreciation of equipment responsible for profit decline.

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May 29

Daily Brief Japan: Canon Inc, Rakuten, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Assessing the Canon Buyback and Follow-On Performance
Weekly Deals Digest (28 May) – Rakuten, Growatt, JD Industrials, Toyo, Silk Laser, Penguin
Legislation to Promote Women Directors Is the Solution, but the Root Cause Is Why It Cannot Be Done

Assessing the Canon Buyback and Follow-On Performance

10 days ago Canon Inc (7751 JP) announced its 18th ¥50bn buyback in 15yrs. They have a pattern, both in execution and outperformance.
Historically, they are reasonably aggressive. It may pay to observe market data to see when they are done. It may also pay to look at peer outperformance cycles.
Here I look at both – buyback cycle performance and cycle outperformance. Good so far, and now I see a tactical trade but it’s not overwhelming.

Weekly Deals Digest (28 May) – Rakuten, Growatt, JD Industrials, Toyo, Silk Laser, Penguin

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments – Rakuten (4755 JP) prices its offer, Tata Technologies (TATATECH IN), Growatt Technology (1833969D CH), JD Industrials (2231713D CH) IPOs.
Event-Driven developments – Toyo Construction (1890 JP), Silk Laser Australia (SLA AU), Healius (HLS AU), Penguin International (PBS SP), Lian Beng (LBG SP).

Legislation to Promote Women Directors Is the Solution, but the Root Cause Is Why It Cannot Be Done

The lack of laws mandating female directors and the absence of specific numerical targets for ％ female directors in Corporate Governance Code have slowed the increase in % female directors.
The lack of understanding of the value of ensuring diversity on the board on companies is serious, as only 9.1% of companies that disclosed skills-matrix adopted “diversity” as a criterion.
It should be a catalyst for companies to understand the value of ensuring diversity on their boards, not merely numbers-crunching that a company only needs to hire one female director.

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May 28

Daily Brief Japan: Rakuten, Japan Post Holdings, Kurita Water Industries, Toyo Construction and more

In today’s briefing:

ECM Weekly (28th May 2023) – HK Trip Notes, Rakuten, JD Ind, Horizon Const, Nippon Prologis, MINT
Last Week In Event SPACE: Rakuten Bank/Group, Cathay/Swire Pacific, Japan Post
Revision of the Corporate Governance Code Requires Substantive Discussion, Not Individual Issues
(Mostly) Asia-Pac Weekly Risk Arb Wrap: Toyo Construction, Silk Laser, Sing Tao, GK Goh Holdings

ECM Weekly (28th May 2023) – HK Trip Notes, Rakuten, JD Ind, Horizon Const, Nippon Prologis, MINT

By Sumeet Singh

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
In the IPO space, HK market sentiment is likely to be put to test again with the upcoming listing for Growatt Technology.
The REIT were once again at the front lines this week for placements, while Rakuten (4755 JP) has so far been holding up.

Last Week In Event SPACE: Rakuten Bank/Group, Cathay/Swire Pacific, Japan Post

Rakuten Bank (5838 JP)‘s TOPIX inclusion is this week. And the Real World Float has gotten smaller since the offering. And some of those people aren’t going to sell near-term.
Swire Pacific (A) (19 HK)‘s P/B is back down to 0.31x as Cathay Pacific Airways (293 HK) tackles alleged language bias by flight attendants.
Understanding real money demand on the Rakuten (4755 JP) story is key. If there is any, that makes deal overhang smaller than it looks.

Revision of the Corporate Governance Code Requires Substantive Discussion, Not Individual Issues

Companies were occupied with meeting the raised standards, and there was little substantive discussion of how corporate governance should be implemented to achieve the corporation’s goal of maximizing shareholder interests.
A few companies have made steady progress, but we cannot expect corporate governance initiatives to go further than they are now if left to the efforts of well-intentioned companies.
Unless the benchmark is changed from TOPIX to another index with a smaller number of components, it will be nearly impossible to find a satisfactory engagement for a passive fund.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Toyo Construction, Silk Laser, Sing Tao, GK Goh Holdings

There are 38 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
There were no new deals were discussed on Smartkarma this week.
Key updates took place for Toyo Construction (1890 JP), Silk Laser Australia (SLA AU), Sing Tao News Corp (1105 HK), and GK Goh Holdings (GKG SP).

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May 26

Daily Brief Japan: Cosmo Energy Holdings, FUJIFILM Holdings, Frontier Management Inc, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Cosmo Energy (5021) In a Display of Stunningly Bad Governance; If You Disagree, You Can’t Vote
FUJIFILM (4901.T) Loving The Setup Here
Frontier Management Inc. (7038 JP) – 1Q Follow-Up
Behind the Issue of Population Decline Is Also the Issue of Human Rights

Cosmo Energy (5021) In a Display of Stunningly Bad Governance; If You Disagree, You Can’t Vote

Cosmo Energy Holdings (5021 JP) and noted Japanese activist Yoshiaki Murakami and affiliates/companies have been duking it out for the better part of a year.
Now Cosmo is putting a Poison Pill to an AGM vote. And it has decided to not allow Murakami-san to vote his shares. Because he is an interested party.
INVESTORS NEED TO BE AWARE. This is the second time a company has sought to deny a shareholder its voting rights without legal basis. The last time the court agreed.

FUJIFILM (4901.T) Loving The Setup Here

Q1’23 revenues of ¥764 billion, up 15% YoY and 2.6% QoQ
FY2022, revenues grew by 13.2% to ¥2,859 while net income grew by 3.9% to ¥219.4.
Electronic Materials set to grow from ¥180 billion in ’22 to ¥500 billion by ’30

Frontier Management Inc. (7038 JP) – 1Q Follow-Up

By Sessa Investment Research

1Q operating profit rose 18%, on a 19% rise in sales. Net profit rose 10%.
According to the company’s data, the pace of increase in orders has been increasing since around the last week of 1Q, indicating a potential for stronger results in this FY.
Management Consulting business sales rose 14%.

Behind the Issue of Population Decline Is Also the Issue of Human Rights

The decline in the working-age population is not merely a decrease in the number of workers; it causes a loss of dynamism in society as a whole.
The “5-year rotational use of foreign workers without the assumption of permanent residency,” not immigration, is overshadowed by human rights issues.
Besides the high cost of education, an increasing number of people are choosing not to marry, and it is necessary to create a society that respects diverse lifestyles.

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May 25

Daily Brief Japan: Rakuten, Japan Post Holdings, Toyo Construction, Rakuten Bank , Suzuki Motor, Tokyo Stock Exchange Tokyo Price Index Topix, Pan Pacific International Holdings, Kyoto Fusioneering and more

In today’s briefing:

Rakuten (4755 JP) – A Tricky Offering But Lots of Non-Fundamental Long Demand
StubWorld: Japan Post Holdings Coming Up “Cheap”
Stuck With Each Other: Toyo “Special Committee” Against Toyo Tender, Toyo Against YFO Proposals
Rakuten Bank & SBI Sumishin Net Bank: Upcoming Passive Flow
Suzuki (7269) | EV Strategy – A Dead End?
Isn’t It Too Much to Expect Instantaneous Screening to Yield the Same Shares as Buffett’s Approach?
Itochu and Donki Tie on Retail Media to Create Major New Revenue Stream
Japan-Based Nuclear Fusion Firm Powers up with $79m Raise

Rakuten (4755 JP) – A Tricky Offering But Lots of Non-Fundamental Long Demand

The Rakuten (4755 JP) offering is producing interesting analysis. My read on the telecom side is that things are better (or less bad) than they were.
Longer-Term, I see the idea. Shorter-term, there will still be questions until there are not. However, there could be a lot of non-fundamental “I want this” demand in the offering.
Questions to ask yourself are: 1) how much will get placed with investors who want it 20+% lower than 15 May highs? 2) how many shorts will cover?

StubWorld: Japan Post Holdings Coming Up “Cheap”

At 0.3x, Japan Post Holdings (6178 JP) is top of the heap in terms of dollar “UpValue” to move to PBR 1.0x under Japan’s governance changes.
Preceding my comments on Japan Post are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Stuck With Each Other: Toyo “Special Committee” Against Toyo Tender, Toyo Against YFO Proposals

Today, Toyo Construction (1890 JP) announced it was against YFO’s AGM shareholder proposals. And that the Special Committee was unanimously against YFO’s tender proposal.
The content is mixed. Some is probably correct (YFO hasn’t done a great job it appears). Some is clearly taking management’s statements at face value where it shouldn’t.
And some is just the passage of time. Last year, ¥1,000 was “too high.” This year it is “not enough.” Now Toyo and YFO are stuck with each other.

Rakuten Bank & SBI Sumishin Net Bank: Upcoming Passive Flow

By Brian Freitas

SBI Sumishin Net Bank (7163 JP) and Rakuten Bank (5838 JP) listed over the last couple of months and the stocks will be added to various indices over the year.
First up, Rakuten Bank (5838 JP) will be added to the Tokyo Stock Exchange Tokyo Price Index Topix (TPX INDEX) at the close on 30 May.
Then both stocks will be added to other global indices between August and December bringing in passive flows and helping support the stock.

Suzuki (7269) | EV Strategy – A Dead End?

By Mark Chadwick

After reviewing Suzuki’s EV Strategy we turn Bearish on the outlook and see downside for the share price.
We believe that Street has missed the rising costs associated with the electrification strategy. We see a period of weaker margins.
Suzuki only targets 20% of sales to come from EVs in India, its largest market. It could be viewed as a laggard.

Isn’t It Too Much to Expect Instantaneous Screening to Yield the Same Shares as Buffett’s Approach?

It’s doubtful that if the outcomes of factor analysis of Berkshire Hathaway’s portfolio stocks and screened to Japanese stocks would be the stocks that Buffett would want to invest in.
Berkshire Hathaway wouldn’t invest in a Japanese company if there were companies in other countries with the same type of business that are more competitive and worthy of investment.
Investors continue to look for companies that few investors are aware of, as stock prices are often high for companies that have competitive advantages and promising future cash flow growth.

Itochu and Donki Tie on Retail Media to Create Major New Revenue Stream

By Michael Causton

Itochu, Familymart, PPI (Don Quijote) and their data analytics partners have come together in the first case of cross-retailer ad platform development.
Itochu provides the central relationship that ties these companies together, and other deals are likely given the significant potential for retail media.
The opportunity for brands to market to these retailers’ customers through highly targeted ads will become ever more compelling, delivering new revenue streams for Donki and Familymart.

Japan-Based Nuclear Fusion Firm Powers up with $79m Raise

By Tech in Asia

Kyoto Fusioneering, a Japan-based energy company, has raised US$79 million in an oversubscribed round.
The firm develops equipment that harnesses fusion energy, which involves merging two or more hydrogen atoms – the same process that powers the sun.
According to the company, its method of energy generation produces no greenhouse emissions, no long-lived radioactive waste, and no risk of nuclear reaction-triggered meltdowns.

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May 24

Daily Brief Japan: Rakuten Bank , Rakuten, Ferrotec Corp, Tokyo Electron, Aeon Co Ltd and more

In today’s briefing:

Rakuten Bank – Big TOPIX Inclusion Next Week
Rakuten (4755 JP): The Current Playbook
Ferrotec. Accelerating Growth Across Multiple Niche Semi Segments
Tokyo Electron (8035 JP): Dubious Guidance
Aeon: All Signs Point to Higher Returns

Rakuten Bank – Big TOPIX Inclusion Next Week

Rakuten Bank priced its IPO low and then immediately bounced. Earnings came in as forecast, and the forecast next year did too. Highish PBR, high ROE, not-so-high-PER on low ROA.
The stock fell on 16 May after Rakuten Bank announced its capital raising. That was probably a knee-jerk reaction, and had no reason.
Next week sees the TOPIX inclusion. And the Real World Float has gotten smaller since the offering. And some of those people aren’t going to sell near-term.

Rakuten (4755 JP): The Current Playbook

By Arun George

Since the announcement of the placement, Rakuten (4755 JP)’s shares are down -15.7% from the undisturbed price of JPY707 per share (12 May prior to press reports of the placement).
To understand how the shares will trade as the offer is launched, we think it is instructive to look at recent large Japanese placements. Pricing date is likely 24 May.
So far, Rakuten’s shares have mostly followed the pattern of previous large placements. Investors participating in previous large Japanese placements tend to secure positive returns.

Ferrotec. Accelerating Growth Across Multiple Niche Semi Segments

Delivered FY’23 net sales of ¥$211 billion, up 57.5% sequentially.
FY’23 operating profit of ¥35 billion was up 63% sequentially
Our favourite Japanese semi stock with a TTM P/E <5

Tokyo Electron (8035 JP): Dubious Guidance

By Scott Foster

Guidance for 1H of FY Mar-24 should be easy to beat. The sharp rebound that management is forecasting for 2H is open to question.
TSMC and Micron plan long-term expansion in Japan and Rapidus will be a new customer. But exports to China – the company’s largest market – will be restricted.
The share price has spiked, but uncertainty is high, visibility is low and valuations are not compelling.Management’s MAGIC medium-term targets look like … magic.

Aeon: All Signs Point to Higher Returns

By Michael Causton

Aeon just announced record revenues of more than ¥9 trillion for FY2022.
Its supermarkets, mall developments and drugstores continue to strengthen and even the GMS business had a good year even if it still a way to go to generate consistent profit.
Meanwhile, Aeon plans to pour ¥150 billion a year into group-wide digital technologies, after launching the most advanced food online operation Japan has seen yet this month.

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May 23

Daily Brief Japan: Rakuten, Nippon Prologis Reit and more

In today’s briefing:

Rakuten US$2.4bn Placement – Recent Updates and Comparison to past Deals
Nippon Prologis (3283 JP) Offering: Lower Premium Vs Peers than Last Time
Nippon Prologis REIT Placement – Well-Flagged and past Deals Have Performed Decently

Rakuten US$2.4bn Placement – Recent Updates and Comparison to past Deals

By Sumeet Singh

Rakuten (4755 JP) aims to raise up to US$2.4bn (JPY323bn) via a global offering.
We have covered various aspects of the deal in our earlier notes, see here and here.
In this note, we will talk about the updates since our last note, as well as the performance of some of the past large primary raises in Japan.

Nippon Prologis (3283 JP) Offering: Lower Premium Vs Peers than Last Time

By Janaghan Jeyakumar, CFA

Japan’s largest logistics REIT Nippon Prologis Reit (3283 JP) (“NPR”) announced a US$183mn follow-on equity offering to fund their recent acquisition of a logistics facility.
The primary offer quantity will be 86,851 units out of which 51,090 units and 35,761 units are expected to be allocated for domestic and international investors, respectively.
Below is a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.

Nippon Prologis REIT Placement – Well-Flagged and past Deals Have Performed Decently

By Ethan Aw

Nippon Prologis Reit (3283 JP) is looking to raise US$184m in its primary follow-on offering to acquire one property, namely Prologis Park Soka.
The deal is a somewhat large one to digest, at 14 days of three month ADV but only 3% dilution.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

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May 22

Daily Brief Japan: Tokyo Electron, Rakuten, Olympus Corp, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Nikkei 225 Vs TOPIX Dynamics
ECM Weekly (21st May 2023) – Alibaba, Cainiao, Baba Cloud, Nexus, DXN, Growatt, Rakuten, JD Ind
Olympus Corp (7733 JP): FY23 Result Missed Expectation; Initiated Muted FY24 Forecast
If Japan Were Treasure Trove of Value Stocks, Global Investors Would Not Underweight Japanese Stocks

Nikkei 225 Vs TOPIX Dynamics

This past week saw dramatic moves in Japanese stock markets. TOPIX +3.1% N225 +4.8% – up the 6th week in a row – closing at their highest in 33 years.
Flows were positive the week before, and I expect we’ll see next week they were positive this past week. But most striking was the interplay between Nikkei 225 and TOPIX.
If foreign inflows increase, Nikkei is likely to outperform TOPIX both because of its existence and previous use, and its construction. And that means watching one’s trades, shorts, and executions.

ECM Weekly (21st May 2023) – Alibaba, Cainiao, Baba Cloud, Nexus, DXN, Growatt, Rakuten, JD Ind

By Sumeet Singh

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, JD.com Inc (ADR) (JD US) and Alibaba (ADR) (BABA US)‘s spin-off’s continue to draw interest.
The REIT were out in full force this week for placements as interest rates globally appear to be approaching their peak.

Olympus Corp (7733 JP): FY23 Result Missed Expectation; Initiated Muted FY24 Forecast

By Tina Banerjee

Olympus Corp (7733 JP) announced mixed FY23 result. While revenue was slightly ahead of forecast, both operating and net profits missed guidance. Excluding Fx, revenue increased just 4.5% in FY23.
Operating profit increased 28% YoY to ¥187 billion, below forecast of ¥198 billion, mainly due to high-than-expected SG&A expenses, which accounted for 47.7% of revenue versus forecast of 47.2%.
Due to continuing macroeconomic uncertainties and waning Fx benefit, Olympus expects FY24 revenue to be ¥914B (+4% YoY) and operating profit to be ¥163B (-13% YoY).

If Japan Were Treasure Trove of Value Stocks, Global Investors Would Not Underweight Japanese Stocks

It’s hoped Buffett’s visit to Japan will encourage managers to review their business strategies to develop products with competitive advantage and value, so that more companies can expect sustainable growth.
Companies with low OP Margin will need to rethink their fundamental strategy to raise OP Margin for mid-to-long term, as ROE may only temporarily rise even if cash is reduced.
There are many stocks in Japan with low valuations, but while there are many cash cow companies, there aren’t many undervalued stocks that can generate cash flow for sustainable growth.

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May 21

Daily Brief Japan: Tokyo Electron, Sony Corp, SBI Shinsei Bank and more

In today’s briefing:

Tokyo Electron. Betting Big On MAGIC Despite The Downturn
Last Week in Event SPACE: Shinsei Bank, China Everbright, Rakuten, Sony Corp
(Mostly) Asia-Pac Weekly Risk Arb Wrap: InvoCare, Newcrest/Newmont, Penguin Int’l, Golden Energy

Tokyo Electron. Betting Big On MAGIC Despite The Downturn

Q1’23 revenues of ¥558.2 billion, up 19% sequentially and up 1% YoY
FY24 outlook down 23% YoY with H2 showing a modest improvement compared to H1
R&D & CapEx investment increasing significantly while YoY revenue set to decline by 23%

Last Week in Event SPACE: Shinsei Bank, China Everbright, Rakuten, Sony Corp

Expect some upset on SBI Shinsei Bank (8303 JP)‘s Offer, the possibility of some activism, but it all plays out in the back end. Not the front end.
Rakuten (4755 JP) is doing a large equity offering to get the monkey off its back with regard to over-leverage, near-term debt refinancing, and WC for Rakuten Mobile.
Fund manager China Everbright (165 HK)‘s implied stub and simple ratio (CEL / Everbright Securities Co (A) (601788 CH)) are at multi-year lows.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: InvoCare, Newcrest/Newmont, Penguin Int’l, Golden Energy