Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/seven-bank-ltd" target="_blank" data-smartkarma-citation="entities:16063:1" rel="noopener">Seven Bank Ltd (8410 JP)</a> announced a MASSIVE ToSTNeT-3 transaction to buy back up to 200,000,000 shares (17.0% of shares out) for ¥52.4bn. Tomorrow AM. </li>
<li>There is a complex iterative calculation on the part of Seven Eleven Japan to figure out how many shares they should put into the buyback.</li>
<li>I see a minimum buyback of 10.8%. 17% would be great. But there is a potential issue on the back end of which investors should be aware.</li>
</ul>


Today after the close, Seven Bank Ltd (8410 JP) announced a MASSIVE ToSTNeT-3 transaction to buy back up to 200,000,000 shares (17.0% of shares out) for ¥52.4bn. Tomorrow AM. 
There is a complex iterative calculation on the part of Seven Eleven Japan to figure out how many shares they should put into the buyback.
I see a minimum buyback of 10.8%. 17% would be great. But there is a potential issue on the back end of which investors should be aware.


[Japan Event] Seven Bank (8410) To Buy Back Up to 17.0% of Shares Out Tomorrow

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>The <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> AGM was a vote of confidence in the Board’s strategy of pursuing two parallel paths to generate value.  </li>
<li>The Board’s management initiatives are steadily being implemented, but have yet to deliver shareholder value. Since they were announced, the share price has modestly outperformed the Nikkei 225.</li>
<li>7&amp;I and Couche Tard signed an NDA but a viable divestiture plan to gain US regulatory approval remains in doubt, particularly as PE has emerged as the likely bidder. </li>
</ul>


The Seven &amp; I Holdings (3382 JP) AGM was a vote of confidence in the Board’s strategy of pursuing two parallel paths to generate value.  
The Board’s management initiatives are steadily being implemented, but have yet to deliver shareholder value. Since they were announced, the share price has modestly outperformed the Nikkei 225.
7&amp;I and Couche Tard signed an NDA but a viable divestiture plan to gain US regulatory approval remains in doubt, particularly as PE has emerged as the likely bidder. 


Seven & I Holdings (3382 JP): Wait and Hope

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seven-bank-ltd" target="_blank" data-smartkarma-citation="entities:16063:1" rel="noopener">Seven Bank Ltd (8410 JP)</a> has been the ugly duckling of Japan e-banks since it got competition in the form of Rakuten Bank (5838) and SBI Sumishin (7163).</li>
<li>Last year, it was posited, and then confirmed, that <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> wanted to sell down to de-consolidate. NTT Docomo wanted to buy a bank. </li>
<li>I thought it a good match but no deal has been done. So now we get a different deal - it's weird for Itochu, but bodes well for Seven Bank</li>
</ul>



Seven Bank Ltd (8410 JP) has been the ugly duckling of Japan e-banks since it got competition in the form of Rakuten Bank (5838) and SBI Sumishin (7163).
Last year, it was posited, and then confirmed, that Seven &amp; I Holdings (3382 JP) wanted to sell down to de-consolidate. NTT Docomo wanted to buy a bank. 
I thought it a good match but no deal has been done. So now we get a different deal - it's weird for Itochu, but bodes well for Seven Bank


[Japan M&A] Seven Bank (8410) - Seven & I Selldown, Itochu Buy-In, Not on My Bingo Card But Not Bad

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>“In the next 50 years... we won’t give a thought to selling those [Japanese trading companies].... Japan’s record has been extraordinary.” (Warren Buffett)</li>
<li>In this insight, we provide detailed comparisons of the five major Japanese trading companies and five major Korean holdcos/trading companies. </li>
<li>Japanese trading companies have higher points for market cap, ROE, DPS increase, and shares cancellation. Korean holdcos have higher points for dividend yield, debt/equity ratio, ROIC, and valuations. </li>
</ul>


“In the next 50 years... we won’t give a thought to selling those [Japanese trading companies].... Japan’s record has been extraordinary.” (Warren Buffett)
In this insight, we provide detailed comparisons of the five major Japanese trading companies and five major Korean holdcos/trading companies. 
Japanese trading companies have higher points for market cap, ROE, DPS increase, and shares cancellation. Korean holdcos have higher points for dividend yield, debt/equity ratio, ROIC, and valuations. 


Shareholder Returns of Japanese Trading Companies Invested By Buffett Vs Top Korean Trading/Holdcos

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> denied a <a href="https://www.yomiuri.co.jp/economy/20250303-OYT1T50214/" target="_blank" rel="noopener">Yomiuri article</a> that the Board has decided not to accept an <a href="https://www.smartkarma.com/entities/alimentation-couche-tard-inc" target="_blank" data-smartkarma-citation="entities:25103:1" rel="noopener">Alimentation Couche-Tard (ATD CN)</a> bid in favour of the restructuring plan.</li>
<li>Despite the Board’s assertions that it is still having constructive discussions with Couche-Tard, its actions suggest otherwise.</li>
<li>Couche-Tard remains interested but faces increasing roadblocks. The valuation is undemanding but the news flow is unlikely to support a rerating in the near-term.</li>
</ul>



Seven &amp; I Holdings (3382 JP) denied a Yomiuri article that the Board has decided not to accept an Alimentation Couche-Tard (ATD CN) bid in favour of the restructuring plan.
Despite the Board’s assertions that it is still having constructive discussions with Couche-Tard, its actions suggest otherwise.
Couche-Tard remains interested but faces increasing roadblocks. The valuation is undemanding but the news flow is unlikely to support a rerating in the near-term.


Seven & I Holdings (3382 JP): Shares Under Pressure as Rumours Swirl

Japan

ITOCHU Corporation is a general trading firm handling textiles, wood, machinery, metals, food, chemicals, construction materials, commodities, and energy related products such as oil and gas. The Company operates around the world. Itochu diversifies by operating in satellite communication and data communication businesses.

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Itochu Corp (8001 JP)

[Japan Event] Seven Bank (8410) To Buy Back Up to 17.0% of Shares Out Tomorrow

Seven Bank will buy back shares this AM (Friday 20 June) in a ToSTNeT-3 transaction as York Holdings entities sell and 7-Eleven Japan goes below...

Travis Lundy

Seven & I Holdings (3382 JP): Wait and Hope

The AGM was a vote of confidence in the Board's plan. However, the effectiveness of the management initiatives remains uncertain, and a Couche-Tard...

Arun George

[Japan M&A] Seven Bank (8410) - Seven & I Selldown, Itochu Buy-In, Not on My Bingo Card But Not Bad

Seven & i appears to be en route to selling a stake in Seven Bank to Itochu. I don't see the benefit to Itochu but it's good for Seven Bank,...

Travis Lundy

Shareholder Returns of Japanese Trading Companies Invested By Buffett Vs Top Korean Trading/Holdcos

In this insight, we provide detailed comparisons of the five major Japanese trading companies and five major Korean holdcos/trading companies.

Douglas Kim

Seven & I Holdings (3382 JP): Shares Under Pressure as Rumours Swirl

Discussions with Couche-Tard are said to remain constructive, but a bid faces increasing roadblocks. The valuation is undemanding but the news flow...

Arun George

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