In today’s briefing:
- Seven & I Holdings: Mega Share Buyback Plan and IPO of North American CVS Unit to Boost Share Price
- Soundwill Holdings (878 HK): Foo Family’s Offer at HK$8.50
- Last Week in Event SPACE: Cheung Kong, Macromill, China National Building Material, Canvest
- (Mostly) Asia-Pac M&A: Oneconnect, Snt, Aeon Delight, AEON Mall, Insignia, 7&I, Sun Art
Seven & I Holdings: Mega Share Buyback Plan and IPO of North American CVS Unit to Boost Share Price
- If indeed the company proceeds with 2 trillion yen buyback over five years, this would represent buyback of about 7.3% of its shares per year (37% of market cap).
- Seven & I Holdings’ plans to massively buyback shares and IPO its North American CVS business are major catalysts that should have positive impact both near and long term.
- Certainly, the company’s action plan to sell its non-core assets (including supermarket, restaurant, and specialty stores) to Bain Capital for $5.5 billion is a step in the right direction.
Soundwill Holdings (878 HK): Foo Family’s Offer at HK$8.50
- Soundwill Holdings (878 HK) announced a privatisation offer from the Foo Family, the largest shareholder, at HK$8.50 (HK$7.50 cash + HK$1.00 special dividend), a 62.8% premium to the undisturbed price.
- Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders rejection) and a headcount test. No disinterested shareholder holds a blocking stake.
- While the offer is light compared to peer multiples, it is attractive compared to historical trading ranges. A low AGM minority participation rate facilitates the vote.
Last Week in Event SPACE: Cheung Kong, Macromill, China National Building Material, Canvest
- Did Trump do CKH (1 HK) a solid, convincing them to sell assets that have profited from international trade growth, just as Trump starts imposing tariffs on anything that moves?
- An OK package for Seven & I (3382 JP). Not perfect. SEI IPO’s a bit dodgy. It may be designed to spur ACT into action, but isn’t an awful fallback.
- Macromill (3978 JP)‘s Offer bumped. If you want to make sure this deal doesn’t get done, do the things you need to do to make sure it doesn’t get done.
(Mostly) Asia-Pac M&A: Oneconnect, Snt, Aeon Delight, AEON Mall, Insignia, 7&I, Sun Art
- I tally 55 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma.
- Three news new deals discussed this week:Soundwill Holdings (878 HK), Oneconnect Financial Technology (6638 HK), Snt Corp (6319 JP), Aeon Delight (9787 JP), and AEON Mall (8905 JP).
- Key updates/news took place on: Insignia Financial (IFL AU), Seven & I Holdings (3382 JP), Sun Art Retail (6808 HK), and Macromill, Inc (3978 JP).
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