Is M3 Now Forced to Use Its 30x EV/OP Multiple and M&A to Maintain Its 20+% OP Growth Rate?

M3 Trendline Buy Pivot, Rise Maturing into a Peak

2021 High Conviction 🇯🇵 Sell M3 (2413 JP)

APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

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<p><a href="https://www.smartkarma.com/entities/563" target="_blank" data-smartkarma-citation="entities:563:1">Sony Corp (6758 JP)</a> is selling 5.34% of <a href="https://www.smartkarma.com/entities/13316" target="_blank" data-smartkarma-citation="entities:13316:1">M3 Inc (2413 JP)</a> existing shares for approximately US$482m (JPY55.273bn). With this sale, it brings Sony's stake in M3 down to 34%.</p><p>The deal scores marginally positive on our framework owing to its strong growth and track record. Its high valuation relative to Japan peers can be easily justified by its dominant position and strong track record. M3 has also recently reported strong growth in Q3 results. Lastly, the only other time Sony sold its stake despite…</p>

Sony Corp (6758 JP) is selling 5.34% of M3 Inc (2413 JP) existing shares for approximately US$482m (JPY55.273bn). With this sale, it brings Sony's stake in M3 down to 34%.The deal scores marginally positive on our framework owing to its strong growth and track record. Its high valuation relative to Japan peers can be easily justified by its dominant position and strong track record. M3 has also recently reported strong growth in Q3 results. Lastly, the only other time Sony sold its stake despite…

M3 Inc Placement - Q3 Results Reiterates Strong Growth, Sell Down Likely to Be One-Off