Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>There's (still) a LOT of upside here. IF <a href="https://www.smartkarma.com/entities/toyota-industries-corp" target="_blank" data-smartkarma-citation="entities:4500:1" rel="noopener">Toyota Industries (6201 JP)</a> sells the Operating Business at 1x book, there's at least another ¥5,800 in this, and maybe more.</li>
<li>FY25 results reaffirm <a href="https://www.smartkarma.com/entities/pccw-ltd" target="_blank" data-smartkarma-citation="entities:873:1" rel="noopener">PCCW Ltd (8 HK)</a>'s stub ops continue to burn cash. Deconsolidated net debt touches an all-time high. And <a href="https://www.smartkarma.com/entities/hkt-ltd" target="_blank" data-smartkarma-citation="entities:874:1" rel="noopener">HKT (6823 HK)</a>'s dividend pass-through % is trending south. </li>
<li>
<a href="https://www.smartkarma.com/entities/yutaka-giken-co-ltd" target="_blank" data-smartkarma-citation="entities:4033:1" rel="noopener">Yutaka Giken (7229 JP)</a> will end up being a case study of how NOT to execute a takeover for a parent company, which is "responsible" for treating minorities fairly.</li>
</ul>


There's (still) a LOT of upside here. IF Toyota Industries (6201 JP) sells the Operating Business at 1x book, there's at least another ¥5,800 in this, and maybe more.
FY25 results reaffirm PCCW Ltd (8 HK)'s stub ops continue to burn cash. Deconsolidated net debt touches an all-time high. And HKT (6823 HK)'s dividend pass-through % is trending south. 

Yutaka Giken (7229 JP) will end up being a case study of how NOT to execute a takeover for a parent company, which is "responsible" for treating minorities fairly.


Last Week In Event SPACE: Toyota Industries, PCCW, Yutaka Giken, Ferretti, Daishin Securities

<ul>
<li>I tally 36 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.</li>
<li>Four new deals were discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/pepper-money-ltd-australia" target="_blank" data-smartkarma-citation="entities:24157:1" rel="noopener">Pepper Money (PPM AU)</a>, <a href="https://www.smartkarma.com/entities/mcj-co-ltd" target="_blank" data-smartkarma-citation="entities:14132:1" rel="noopener">MCJ Co Ltd (6670 JP)</a>, <a href="https://www.smartkarma.com/entities/br-holdings-corp" target="_blank" data-smartkarma-citation="entities:19365:1" rel="noopener">Br Holdings (1726 JP)</a>, and <a href="https://www.smartkarma.com/entities/alleanza-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:29288:1" rel="noopener">Alleanza Holdings Co Ltd (3546 JP)</a>.</li>
<li>Key updates/news also took place on: <a href="https://www.smartkarma.com/entities/dongfeng-motor-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:910:1" rel="noopener">Dongfeng Motor (489 HK)</a>, <a href="https://www.smartkarma.com/entities/mandom-corp" target="_blank" data-smartkarma-citation="entities:8353:1" rel="noopener">Mandom Corp (4917 JP)</a>, <a href="https://www.smartkarma.com/entities/yutaka-giken-co-ltd" target="_blank" data-smartkarma-citation="entities:4033:1" rel="noopener">Yutaka Giken (7229 JP)</a>. and <a href="https://www.smartkarma.com/entities/minmetals-land-ltd" target="_blank" data-smartkarma-citation="entities:1917:1" rel="noopener">Minmetals Land (230 HK)</a>.</li>
</ul>


I tally 36 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
Four new deals were discussed on Smartkarma this week: Pepper Money (PPM AU), MCJ Co Ltd (6670 JP), Br Holdings (1726 JP), and Alleanza Holdings Co Ltd (3546 JP).
Key updates/news also took place on: Dongfeng Motor (489 HK), Mandom Corp (4917 JP), Yutaka Giken (7229 JP). and Minmetals Land (230 HK).


Asia-Pac M&A Weekly Wrap: Pepper Money, MCJ, Br Holdings, Alleanza, Dongfeng Motor, Mandom

Travis Lundy

<ul>
<li>One Homecenter operator Kohnan Shoji (7516) is buying the minority holdings in another homecenter operator <a href="https://www.smartkarma.com/entities/alleanza-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:29288:1" rel="noopener">Alleanza Holdings Co Ltd (3546 JP)</a> to co-own it with another homecenter/retailer Valor Holdings (9956).</li>
<li>The price is not terribly compelling, but it is a premium to recent trading. I find it a bit surprising Valor isn't buying the rest. </li>
<li>This probably gets done. One could agitate but if an activist is left with a large minority stake, what then? </li>
</ul>


One Homecenter operator Kohnan Shoji (7516) is buying the minority holdings in another homecenter operator Alleanza Holdings Co Ltd (3546 JP) to co-own it with another homecenter/retailer Valor Holdings (9956).
The price is not terribly compelling, but it is a premium to recent trading. I find it a bit surprising Valor isn't buying the rest. 
This probably gets done. One could agitate but if an activist is left with a large minority stake, what then? 


[Japan M&A] Kohnan Shoji to Buy Out Minorities in Alleanza (3546 JP); Inexpensive But Probably Done

<ul>
<li>Last year, I wrote about <a href="https://www.smartkarma.com/entities/joyful-honda-co-ltd" target="_blank" data-smartkarma-citation="entities:13616:1" rel="noopener">Joyful Honda (3191 JP)</a>'s implementation of a ¥2.5bn ToSTNeT-3 into Accelerated Share Repurchase. It was the first such transaction I knew of in Japan.</li>
<li>This year, they have just announced another for nearly twice the size. It is worth looking at the details and comparing the stock vs Peers.</li>
<li>It is also worth understanding exactly what the incentives are for whom and how that impacts the path. And who might respond to it.</li>
</ul>


Last year, I wrote about Joyful Honda (3191 JP)'s implementation of a ¥2.5bn ToSTNeT-3 into Accelerated Share Repurchase. It was the first such transaction I knew of in Japan.
This year, they have just announced another for nearly twice the size. It is worth looking at the details and comparing the stock vs Peers.
It is also worth understanding exactly what the incentives are for whom and how that impacts the path. And who might respond to it.


Joyful Honda (3191) - Repeats Its ASR In Double the Size

<ul>
<li>Yesterday after the close, 500+ store home centre operator <a href="https://www.smartkarma.com/entities/kohnan-shoji-co-ltd" target="_blank" data-smartkarma-citation="entities:5662:1" rel="noopener">Kohnan Shoji (7516 JP)</a> announced full-year earnings (revs -0.2%, OP -16.6%, NP -16.4%yoy) and a buyback. </li>
<li>The buyback is for up to 1.2mm shares and up to ¥4bn to spend from here to end Sep 2022.</li>
<li>The shareholder register is interesting, diverse, and makes one wonder whether the buyback is to soften the blow of lower income, defence against an activist, or something else.</li>
</ul>


Yesterday after the close, 500+ store home centre operator Kohnan Shoji (7516 JP) announced full-year earnings (revs -0.2%, OP -16.6%, NP -16.4%yoy) and a buyback. 
The buyback is for up to 1.2mm shares and up to ¥4bn to spend from here to end Sep 2022.
The shareholder register is interesting, diverse, and makes one wonder whether the buyback is to soften the blow of lower income, defence against an activist, or something else.


Kohnan Shoji (7516) Buyback - Shareholder Return? Activist Defense? Future MBO? All of the Above?

Japan

KOHNAN SHOJI CO., LTD. operates a home improvement center chain, located in Osaka, Hyogo, and Kyoto.  The Company sells mainly home improvement products such as lumber, hardware, paint and also household utensils.  Kohnan Shoji also sells auto and leisure products.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Kohnan Shoji (7516 JP)

Last Week In Event SPACE: Toyota Industries, PCCW, Yutaka Giken, Ferretti, Daishin Securities

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Asia-Pac M&A Weekly Wrap: Pepper Money, MCJ, Br Holdings, Alleanza, Dongfeng Motor, Mandom

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

[Japan M&A] Kohnan Shoji to Buy Out Minorities in Alleanza (3546 JP); Inexpensive But Probably Done

This is a straightforward buyout of minorities in a listed operator by a another listed strategic operator. But it results in a strange JV it...

Travis Lundy

Joyful Honda (3191) - Repeats Its ASR In Double the Size

Joyful Honda is conducting another ASR-style buyback. It is worthwhile looking at what happened last time vs Peers, and understanding incentives...

Travis Lundy

Kohnan Shoji (7516) Buyback - Shareholder Return? Activist Defense? Future MBO? All of the Above?

A Kohnan Shoji (7516) buyback announcement allows for decent market impact, on top of relatively cheap look-through PE-style valuation and activist...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)