[JAPAN ACTIVISM] - Murakami Group Goes Activisting on Exedy (7278) - Room To Run

Travis has highlighted this Insight as a Top Pick

970 Views18 Jun 2024 21:26

Boomeranged on Fri, 21 Jun 2024 15:55

The Murakami Group has now bought 10.1% of Exedy (7278). Interestingly, NOMURA Aya bought another 1.18% on 14 June to get to 9.59%, then sold 6.79% to Minami Aoyama Fudosan. That suggests to me they are looking at this as a large tender offer buyback situation rather than a market sale or cross sale (the way they sold Cosmo Energy and Aozora). To me, that means they can continue to "push".

SUMMARY

Late May, Aisin (7259 JP) announced a sell-down of its 34% stake in Exedy Corp (7278 JP) - a big non-dilutive offering, pricing 11% below undisturbed. Exedy announced a buyback.
Announced on the 27th of May, shares fell sharply the next day, it priced on the 3rd, and offering shares traded on the 10th. Then the price started climbing back.
My first and second pieces argued that buyback accretion, index impact, and change in register shape all meant it was a buy. Activist Murakami agreed, now he has 6.5%.

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