Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

MatsuKiyoCocokara Merger and Implied Forward Forecasts

Cocokara/​MatsuKiyo Deal Finally Coming?

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

On April 26th 2019, an announcement was made of a possible merger between <a href="https://www.smartkarma.com/entities/matsumotokiyoshi-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:2259:1" rel="noopener">Matsumotokiyoshi Holdings Co., Ltd. (3088 JP)</a> (<a target="_blank">Matsumoto</a>) and <a href="https://www.smartkarma.com/entities/cocokara-fine-inc" target="_blank" data-smartkarma-citation="entities:15447:1" rel="noopener">Cocokara Fine (3098 JP)</a> (Cocokara).As a part of this long running merger process, Matsumoto initially purchased 20.02% of Cocokara share capital for approximately ¥38bn in early 2020 to make Cocokara an affiliate of Matsumoto.Towards the end of last month, Matsumoto and Cocokara announced the details of the management integration plan, including the medium term revenue and OP margin targets, expected synergies and the share exchange ratio for the merger.The merger is expected to be effective from 1st October 2021, subjected to shareholder approval from both Matsumoto and Cocokara shareholders during their respective AGMs on 29th June 2021.On 1st October 2021, Cocokara shareholders, excluding treasury shares and Matsumoto’s 20.02% ownership, will receive 1.7 Matsumoto shares per every share of Cocokara. As a result, a total of 40.795m shares will be added to Matsumoto’s share capital following the offer.<a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> has been following the developments of Matsumoto &amp; Cocokara merger from the start, and its highly recommended reading his insights to understand the background of the deal and trading opportunities from an event angle. Please find below the links to his latest insights, discussing the details of the recently announced management integration plan and his take on the fundamental valuation of the combined business. <a href="https://www.smartkarma.com/insights/matsukiyococokara-co-the-merger" target="_blank" rel="noopener">MatsukiyoCocokara &amp; Co - The Merger</a>, <a href="https://www.smartkarma.com/insights/matsukiyococokara-merger-and-implied-forward-forecasts" target="_blank" rel="noopener">MatsuKiyoCocokara Merger and Implied Forward Forecasts</a>This is the first in a series of insights, discussing our view on the combined entity’s fundamentals including revenue and OP drivers, likelihood of meeting medium term targets, the feasibility of extracting ¥30bn in synergies and the valuation.

On April 26th 2019, an announcement was made of a possible merger between Matsumotokiyoshi Holdings Co., Ltd. (3088 JP) (Matsumoto) and Cocokara Fine (3098 JP) (Cocokara).As a part of this long running merger process, Matsumoto initially purchased 20.02% of Cocokara share capital for approximately ¥38bn in early 2020 to make Cocokara an affiliate of Matsumoto.Towards the end of last month, Matsumoto and Cocokara announced the details of the management integration plan, including the medium term revenue and OP margin targets, expected synergies and the share exchange ratio for the merger.The merger is expected to be effective from 1st October 2021, subjected to shareholder approval from both Matsumoto and Cocokara shareholders during their respective AGMs on 29th June 2021.On 1st October 2021, Cocokara shareholders, excluding treasury shares and Matsumoto’s 20.02% ownership, will receive 1.7 Matsumoto shares per every share of Cocokara. As a result, a total of 40.795m shares will be added to Matsumoto’s share capital following the offer.Travis Lundy has been following the developments of Matsumoto &amp; Cocokara merger from the start, and its highly recommended reading his insights to understand the background of the deal and trading opportunities from an event angle. Please find below the links to his latest insights, discussing the details of the recently announced management integration plan and his take on the fundamental valuation of the combined business. MatsukiyoCocokara &amp; Co - The Merger, MatsuKiyoCocokara Merger and Implied Forward ForecastsThis is the first in a series of insights, discussing our view on the combined entity’s fundamentals including revenue and OP drivers, likelihood of meeting medium term targets, the feasibility of extracting ¥30bn in synergies and the valuation.

A Quick Run Through Fundamentals Before The MatsumotoKiyoshi and Cocokara Fine Merger