Daily Brief Japan: Exedy Corp, Infocom Corp, Amuse Inc, Starts Corp Inc, Shimamura and more

• Toyota equity affiliate Aisin (7259 JP) last September said it would sell all its crossholdings. That now includes a 36.5% stake in Exedy Corp (7278 JP). 
• Today, they announced an offering of all the shares (when including the greenshoe). That is nearly ¥50bn. That is offset by a ¥15bn buyback which could reduce the offering size.
• Games may be played, but there is considerable accretion, and Exedy will see higher float and still-high net cash.

• A variety of articles of recent from private media sources have suggested that Teijin Ltd (3401 JP) has its 55% stake in Infocom Corp (4348 JP) up for auction. 
• According to earlier articles, binding Second Round bids were due last week. According to an article out late last week, binding bids have been made, with some “around ¥250bn.”
• What that means for price may depend on what the “around ¥250bn” means. A brief exploration below. 

• Aisin (7259 JP) is looking to raise US$290m from selling its entire stake in Exedy Corp (7278 JP).
• While the selldown doesn’t seem to be particularly well-flagged, this appears to be another cross-shareholder unwind in Japan.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• The music industry in the west focuses on speculative assets and bundling services, while in Japan firms have 360-degree deals with artists.
• Amuse, a major player in the Japanese music industry, historically managed the successful band Southern All Stars but has diversified beyond them.
• Despite still having concentration in top acts like Masaharu Fukuyama, Amuse’s business model and intrinsic value are seen as attractive to investors.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Starts is a high-quality business operating primarily in asset-light CRE services
• The company has the potential to reframe its narrative and increase its share price
• Strong founder and management team with a history of delivering impressive returns on equity

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Shimamura continues to grow at a solid rate after struggling to find relevance in the five years to 2021.
• Its growing success with collaborative brands and direct sourcing has delivered younger fans in city centres, and the apparel retailer now plans to build stores in the four big conurbations.
• The timing is just right as consumers shift to ever cheaper basics in the face of fears of further inflation and tougher times ahead.