In today’s briefing:
- Toshiba (6502) – 3D Writes Another Letter
- Toshiba – 3D At It Again
- Takeda Strengthens Rare Disease Portfolio Through Tie-Ups with Gene Therapy Developers
- Kura Sushi (2695): Conan & Crab Popular in March; Kura Sushi Is Becoming a Food Amusement Park
Toshiba (6502) – 3D Writes Another Letter
- On 24 March, the EGM defeated both company and 3D Investment proposals. That night, a leak in the Nikkei said the company would pursue privatisation measures. Supply side interest. Check.
- That same day, Bain signed a “Confirmation Agreement” with lead Toshiba shareholder Effissimo would tender into a Bain Tender Offer. Demand Side interest confirmed. Check.
- Now we have a 3D public letter to the Board demanding 3 measures before the AGM.
Toshiba – 3D At It Again
- 3D Investment Partners has sent another open letter to Toshiba’s Board of Directors once again pushing for privatisation options.
- Once again, the fund’s claims and demands come across as rather shrill and potentially desperate.
- 3D’s behaviour is a stark contrast with other activists who have been quieter and more skilful and could be the biggest risk to Toshiba in our view.
Takeda Strengthens Rare Disease Portfolio Through Tie-Ups with Gene Therapy Developers
- Takeda Pharmaceutical (4502 JP) has been aggressively expanding its rare disease portfolio following recent hiccups in its development pipeline through Tie-Ups with different gene therapy developers.
- Rare diseases biz is the second largest business segment for Takeda generating about 17.1% of total revenues for the company.
- Takeda’s share price started plunging after suspending a phase 2 study of TAK-994 in October 2021 and price started moving up since January and we think there is further upside.
Kura Sushi (2695): Conan & Crab Popular in March; Kura Sushi Is Becoming a Food Amusement Park
March SSS: 106.3% vs. 2021, 103.7% vs. 2019 (pre-pandemic)
Same-store sales of other revolving sushi formats in March (compared to March 2021 and March 2019) were 93.5% and 96.8% for Sushiro (Food & Life Companies), 104.4% and 89.9% for Genki Sushi, and 89.7% and 82.2% for Kappa Sushi, respectively
The number of stores at the end of February was 510 in Japan (+3 MoM), 37 in the U.S. (+1 MoM), and 45 in Taiwan (+1 MoM). The total number of stores was 592 (+5 MoM)
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