Daily Brief Consumer: Toei Animation, Clarus , MGM China Holdings, Goldwin Inc and more

• In December 2021, when companies were required to file statements with the TSE as to plans to meet continuing listing requirements, Toei Animation (4816 JP) had a Plan.
• That plan? Get from a then-current 15.5% Tradable Shares level to 25.0% by 31 March 2025. That was “OK” though later, the TSE asked companies to speed it up.
• Today, shareholders Sony and Bandai Namco announced an equity offering to sell down up to 4.48mm shares in a domestic+overseas offering. It’s big, heavy, and there is more to come.

• Bandai Namco (7832 JP) and Sony Pictures are looking to raise up to US$525m via selling around 10.66% of Toei Animation (4816 JP) (TA).
• The purpose of the placement is to unwind some of the cross-shareholding, as well as help TA to maintain its listing in the Standard Segment.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Toei Animation (4816 JP) has announced a secondary offering of up to 4.5 million shares (including overallotment). Bandai Namco Holdings (7832 JP) and Sony Corp (6758 JP) are the sellers.
• The offering will allow Toei Animation to maintain its listing in the TSE Standard Market and enable Bandai Namco and Sony to reduce and liquidate cross-shareholdings.
• Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will likely fall between 27 February and 4 March (likely 27 February).

Key points (machine generated)

• Clarus’s non-ESG portfolio consists of reputable outdoor brands such as Black Diamond, Pieps, Sierra Bullets, Barnes Bullets, and SKINourishment.
• Their ESG portfolio includes brands like Industry West, Snow Peak, Royal Robbins, Stonewear, and Hummingbird, which focus on sustainable and environmentally friendly products.
• With Warren Kanders’s ownership and track record, the recent underperformance of Clarus’s stock is deemed unacceptable, but the inclusion of reputable outdoor brands and the commitment to sustainability provide potential for stock price appreciation.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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• Lippo Karawaci
• MGM China Holdings

• Goldwin has had a remarkable run of record sales and profits, a beneficiary of the continuing growth in the outdoor market as well as its own retail strategy. 
• Although much of its success has come from The North Face, Goldwin is determined to become a more diversified – and global – sports business.
• When we first recommended the stock it was around ¥5,000 and rose to a peak of ¥12,600 but is now about ¥9,000. Will it grow again? We think so.