In today’s briefing:
- Fancl (4921) TOB – Kirin (2503) Does the Inevitable and Takes Out Minorities. Lightish But…
- Fancl (4921 JP): Kirin (2503 JP)’s Light JPY2,690 Tender Offer
- Helios Techno Holding (6927) – RS Won’t Bid Higher, Market Sees Value
- Shiseido (4911 JP): Brainstorming For Potential Buyers
- Raccoon Holdings, Inc. (3031 JP): Full-year FY04/24 flash update
- GA Technologies (3491 JP): 1H FY10/24 flash update
- Good Com Asset (3475 JP): 1H FY10/24 flash update
- AB&Company Co Ltd (9251 JP): 1H FY10/24 flash update
- CellSource (4880 JP): 1H FY10/24 flash update
Fancl (4921) TOB – Kirin (2503) Does the Inevitable and Takes Out Minorities. Lightish But…
- Kirin Holdings (2503 JP) bought a 33% stake from the founder and several others in August 2019. Five years later, they are coming back for the rest.
- The price here is ¥2,690/share which is a 42.7% premium from yesterday’s close. Kirin paid 20+% more in 2019. Earnings fell, but they paid 37x NTM. This is 32x.
- This is lightish… but… this should get done. Activism would be difficult. There are enough shareholders who should be OK getting out. This should trade tight.
Fancl (4921 JP): Kirin (2503 JP)’s Light JPY2,690 Tender Offer
- Fancl Corp (4921 JP) recommended Kirin Holdings (2503 JP)’s tender offer of JPY2,690, a 42.7% premium to the undisturbed price.
- The timing looks opportunistic as Fancl’s shares are down 20% YTD. The offer period is from 17 June to 29 July.
- While the offer is attractive vs peer multiples, it is light vs historical trading ranges. Securing the required acceptance rate could prove challenging as the offer price is light.
Helios Techno Holding (6927) – RS Won’t Bid Higher, Market Sees Value
- Today at noon JST, Rs Technologies (3445 JP) released an announcement on TDNet, “Our policy regarding the tender offer for Helios Techno Holding Co., Ltd. shares”
- In it, they indicated that the price offered – ¥825/share – is a price which “fully returns to general shareholders the increased enterprise value that will result from [transaction] synergies.”
- They acknowledge the market price is trading higher than the TOB Price, but say they have no plans to raise the Tender Offer Price. So now what? It depends.
Shiseido (4911 JP): Brainstorming For Potential Buyers
- Today, according to public news, Kirin Holdings will launch a tender offer for Fancl Corp (4921 JP) at a likely 30% premium.
- The beauty industry is historically ripe with M&A deals. It is not hard to see why, as the global beauty sector trades at a hefty valuation multiple.
- In this insight, we brainstorm for potential buyers of Shiseido Company (4911 JP) and analyze the viability of such.
Raccoon Holdings, Inc. (3031 JP): Full-year FY04/24 flash update
- Revenue increased by 9.2% YoY to JPY5.8bn, driven by economic recovery and increased inbound demand.
- Operating profit decreased by 52.5% YoY to JPY567mn due to higher advertising and promotional expenses.
- Financial business revenue rose 14.9% YoY to JPY2.5bn, with a 29.4% YoY decrease in operating profit to JPY371mn.
GA Technologies (3491 JP): 1H FY10/24 flash update
- Revenue for 1H FY10/24 was JPY85.9bn, up 35.5% YoY, with a business profit of JPY2.2bn, up 146.1% YoY.
- RENOSY Marketplace business revenue was JPY83.6bn, up 35.3% YoY, and ITANDI business revenue was JPY2.1bn, up 34.1% YoY.
- FY10/24 company forecast revised to JPY185.0bn in revenue and JPY3.7bn in business profit, with EPS unchanged at JPY45.90.
Good Com Asset (3475 JP): 1H FY10/24 flash update
- Sales increased by 6.0% YoY to JPY11.4bn, but net income attributable to owners decreased by 54.1% YoY to JPY359mn.
- Wholesale Sales and Retail Sales segments saw YoY profit drops, while Real Estate Management posted YoY increases in both sales and profit.
- The company sold 15 condo buildings with 369 units (+11.5% YoY) and purchased nine condo buildings with 675 units (-61.2% YoY).
AB&Company Co Ltd (9251 JP): 1H FY10/24 flash update
- Revenue increased by 6.9% YoY to JPY8.7bn, but operating profit decreased by 9.9% YoY to JPY802mn.
- Directly Managed Beauty Salon Operation revenue grew 6.3% YoY to JPY7.2bn, while operating profit dropped significantly to JPY20mn.
- Franchise segment revenue rose 19.0% YoY to JPY1.3bn, with operating profit increasing 27.7% YoY to JPY528mn.
CellSource (4880 JP): 1H FY10/24 flash update
- Revenue increased by 2.6% YoY to JPY2.2bn, while operating profit decreased by 57.3% YoY to JPY281mn.
- SG&A expenses rose by 29.4% YoY to JPY1.1bn, leading to an operating profit margin decline to 12.6%.
- Medical device sales grew by 35.6% YoY to JPY486mn, and cosmetics sales surged by 157.9% YoY to JPY286mn.
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