In today’s briefing:
- Lawson Considering IPO for Seijo Ishii
- Uniti Enters SID With Morrison/Brookfield
- Uniti Enters a SID with Morrison/Brookfield Consortium at A$5.00 Per Share
- Mitra Adiperkasa (MAPI IJ) – Remoulded and Ready for Recovery
- ClearBridge Appreciation Strategy Portfolio Manager Commentary Q1 2022
- S Foods (2292): Record Profits in FY2/22; FY2/23 Guidance Calls for NP of 10bn Yen and Dividend Hike
- Clearbridge Investments Mid Cap Strategy Portfolio Manager Commentary Q1 2022
Lawson Considering IPO for Seijo Ishii
- Lawson Inc (2651 JP) acquired the upmarket supermarket operator, Seijo Ishii, in 2014 for ¥55 billion.
- It is now considering plans for an IPO for Seijo next year following a boom in the company’s fortunes during the pandemic.
- Net profit rose 13% last year and the potential for growth remains strong given the expansion of the wealth market in Japan.
Uniti Enters SID With Morrison/Brookfield
- Uniti Group Ltd (UWL AU) has now entered into a Scheme Implementation Deed (SID) with the Morrison/Brookfield Consortium.
- The Offer price remains at A$5.00/share, in line with the revised proposal on the 29 March.
- Uniti’s Board of Directors unanimously recommends that Uniti shareholders vote in favour of the Scheme in the absence of a Superior Proposal.
Uniti Enters a SID with Morrison/Brookfield Consortium at A$5.00 Per Share
- Uniti Group Ltd (UWL AU) has entered a SID with the Morrison/Brookfield consortium at A$5.00 cash per share less dividends declared or paid after today.
- The key scheme conditions are shareholder approval, FIRB approval and Court approval. The scheme meeting will be held in July.
- We think that the offer is attractive. At the last close price of A$4.96, the gross and annualised spread to a July-end effective date is 0.8% and 2.8%, respectively.
Mitra Adiperkasa (MAPI IJ) – Remoulded and Ready for Recovery
- Mitra Adiperkasa’s results this week confirm a strong recovery is in place, with improving margins and growth across all verticals and a return to profitability for FY2021.
- Growth was evident in both online and offline channels as the company’s unified retail strategy continues to yield strong results plus inventory levels improved dramatically QoQ in 4Q2021.
- Mitra Adiperkasa (MAPI IJ) remains a key proxy for the retail recovery in Indonesia and has remoulded itself to changing consumer behaviour. Valuations remain attractive versus historical levels.
ClearBridge Appreciation Strategy Portfolio Manager Commentary Q1 2022
- The S&P 500 Index finished the first quarter down 4.6%, snapping a run of seven straight quarters of positive returns.
- The stock market is above the 90th percentile in almost every valuation metric and could be vulnerable to a materially slower U.S. economy, which it does not seem to be discounting.
- Credit spreads widened, parts of the yield curve inverted, and the Fed began to drain liquidity via interest rate increases and stated its intent to reduce its balance sheet
S Foods (2292): Record Profits in FY2/22; FY2/23 Guidance Calls for NP of 10bn Yen and Dividend Hike
- On April 14, S Foods (2292, the company) announced FY2/22 sales of 358.8bn yen (+9.6% YoY) and OP of 17.4bn yen (+38.2% YoY, OPM 4.9%)
- The company’s full-year guidance for FY2/23 is sales of 375.0bn yen (+4.5% YoY), OP of 14.8bn yen (-15.1% YoY; OPM 3.9%), and NP of 10.0bn yen (-16.3% YoY)
- The company’s strong performance in the U.S. should make it a relatively strong performer among major meatpackers.
Clearbridge Investments Mid Cap Strategy Portfolio Manager Commentary Q1 2022
- ClearBridge is a leading global asset manager committed to active management.
- The Strategy underperformed the benchmark as elevated levels of uncertainty and volatility during the quarter put pressure on mid cap stocks.
- We are confident in our current portfolio construction and believe our holdings will persevere through these short- term challenges.
Before it’s here, it’s on Smartkarma
