In today’s briefing:
- [Activism Japan] Nissan Tokyo Sales (8291) Gets An ‘Outsourced Activist’ but the Value Prop Remains
- Seven & I Holdings (3382 JP): Awaiting the Board’s Response as Couche-Tard Goes on a Charm Offensive
- Rio Tinto (RIO LN/RIO AU): Thinking About Unification
- CK Hutch (1 HK): Still Trading Cheap
- SoCar: A Partial Tender Offer by SOQRI
- Digging Into the Early Full Rollout of NPS’s Reference Portfolio Play
- What We Need to Know About the Korean Commercial Act Amendment Right Now
- Hoban Group Purchases LS Corp Shares – Is This a Hanjin Kal 2.0?
- How Acquiring Checkpoint Therapeutics Inc Adds Value to Sun Pharma?
- UK Competition Regulator Clears Keysight/Spirent Deal
[Activism Japan] Nissan Tokyo Sales (8291) Gets An ‘Outsourced Activist’ but the Value Prop Remains
- On 12 March 2025, a minor Twitter account @nanahoshiuk started in January announced a website shiftnissantokyo.com where they point out the value proposition in Nissan Tokyo Sales (8291 JP).
- The writeup is by a UK company led by a young man with an equity-investing career, some experience at an activist shop, who now runs a “Shareholder Activism Outsourcing Service.”
- The content sounds familiar to my piece in December, has a few unpolished edges, but clearly points out the value proposition. The stock deserves a re-visit. My comments are below.
Seven & I Holdings (3382 JP): Awaiting the Board’s Response as Couche-Tard Goes on a Charm Offensive
- On 13 March, Alimentation Couche-Tard (ATD CN)’s management held its first press conference in Japan since it disclosed its Seven & I Holdings (3382 JP) offer.
- The Couche-Tard charm offensive was designed to pressure the Board to engage and facilitate a definite agreement. The press conference provided incremental new information.
- The Board’s next move will likely provide limited due diligence, partly to avoid a protest vote at the May AGM. However, the prospect of a Board-recommended binding proposal remains low.
Rio Tinto (RIO LN/RIO AU): Thinking About Unification
- Rio Tinto Ltd (RIO AU) shareholders will vote on Palliser’s AGM resolution to conduct an independent review on whether the potential unification is in the best interests of shareholders.
- Palliser and the Board’s arguments for and against unification focus on five factors: tax costs, post-unification share price, lack of scrip M&A, wastage of franking credits, and shareholder support.
- A Grant Thornton report supports unification. The board’s case is strong primarily on tax costs, while Palliser’s case is strong on post-unification share price, M&A, and franking credits.
CK Hutch (1 HK): Still Trading Cheap
- To avoid a political landmine, on the 4th March CK Hutchison Holdings (1 HK) announced a deal with Blackrock to offload its entire port ops, including the contentious Panama ports.
- It’s an astute deal selling to a buyer, ostensibly backed by the Trump administration, at the top of the market, knowing global trade could fall under a new tariff regime.
- The risk to the transaction is one of timing. US/Panama approvals are a shoo-in. But it’s a complex deal, which will take time to work through the system.
SoCar: A Partial Tender Offer by SOQRI
- After the market close on 13 March, it was reported that SOQRI Co will be doing a partial tender offer public offering of 171,429 common shares of Socar.
- The tender offer period is from 14 March to 2 April. The tender offer price is 17,500 won which is a 21% premium to current price.
- Socar’s founder Lee Jae-Woong is pushing for a tender offer to solidify the control of Socar from Lotte Rental which has recently been purchased by Affinity Equity Partners.
Digging Into the Early Full Rollout of NPS’s Reference Portfolio Play
- The street suspects NPS is fast-tracking its reference portfolio in local equities, not just rebalancing to cover last year’s underweight in its Q1 2025 adjustment.
- The passive-to-active shift is on—starting with enhanced passive, then an early ramp into event-driven and high-conviction active plays.
- We traders should expect outsized swings in leaders and restructuring plays as NPS flows amplify moves.
What We Need to Know About the Korean Commercial Act Amendment Right Now
- Lee Bok-hyun, FSS Chairman, unexpectedly reversed his stance and now opposes Choi’s veto on the amendment, pushing for shareholder protection and adjustments in subordinate regs instead.
- From a short-term trading angle, traders will focus on stocks with high volatility potential related to auditor appointments rather than the extension of directors’ fiduciary duties to shareholders.
- Large-Cap banks and non-bank stocks, with low controlling stakes and high foreign ownership, are likely to see significant short-term trading impact.
Hoban Group Purchases LS Corp Shares – Is This a Hanjin Kal 2.0?
- In this insight, we discuss a new catalyst on the share price of LS Corp (006260 KS) which is the purchase of its shares by the Hoban Group.
- Hoban Group has recently purchased shares of LS Corp. Although the exact percentage of shares has yet to be made public, it is estimated to be less than 3%.
- LS Corp could improve shareholder returns. Plus, the ongoing litigation between Taihan Electric Wire and LS Cable may be the real reason why Hoban decided to invest in LS Corp.
How Acquiring Checkpoint Therapeutics Inc Adds Value to Sun Pharma?
- Sun Pharmaceutical Industries (SUNP IN) is set to acquire Checkpoint Therapeutics for $355 million, enhancing its onco-dermatology portfolio with UNLOXCYT™, an FDA-approved treatment.
- This strategic move provides Sun Pharma with immediate access to the U.S. market and the potential for global expansion, especially in the PD-1 inhibitor space.
- The acquisition promises revenue growth and synergistic opportunities, although regulatory approvals and successful integration are crucial for realizing its full potential.
UK Competition Regulator Clears Keysight/Spirent Deal
- The UK’s CMA cleared the Keysight-Spirent deal without a Phase 2 investigation, removing a major regulatory hurdle for the acquisition’s completion.
- If the acquisition is not finalized by June 30, 2025, Spirent shareholders will receive an additional 1p per share, compensating for the delay.
- With a 7% gross spread and an 89% probability of completion, market confidence in the acquisition remains strong, supported by shareholder approval and regulatory progress.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
Unlock all research summaries