Merger Arbitrage, Relative Value, Event-Driven

Per Gullberg, CFA, FRM, CAIA

Event-Driven

Maruetsu (8178 JP) &nbsp;shareholders have two avenues for participating in the &nbsp;merger with Kasumi (8196 JP) and MaxValue (unlisted):a) accepting the TOB at&nbsp;¥525/shb) participating in the share swap with Kasumi.For the duration of the TOB, there is effectively a floor at the TOB price, and an embedded call option on Kasumi. In this insight we take a closer look at the value of this optionality.

Maruetsu (8178 JP) &nbsp;shareholders have two avenues for participating in the &nbsp;merger with Kasumi (8196 JP) and MaxValue (unlisted):a) accepting the TOB at&nbsp;¥525/shb) participating in the share swap with Kasumi.For the duration of the TOB, there is effectively a floor at the TOB price, and an embedded call option on Kasumi. In this insight we take a closer look at the value of this optionality.

Opportunity to buy embedded option cheaply

Japan

KASUMI CO., LTD. operates a supermarket chain mainly in Kanto area.  The Company sells foodstuffs, household utensils, and clothing.

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Kasumi Co Ltd (8196 JP)

Opportunity to buy embedded option cheaply

Maruetsu (8178 JP) shareholders have two avenues for participating in the merger with Kasumi (8196 JP) and MaxValue (unlisted):a) accepting the...

Per Gullberg, CFA, FRM, CAIA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)