Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today, the day before the previously extended <a href="https://www.smartkarma.com/entities/m3-inc" target="_blank" data-smartkarma-citation="entities:13316:1" rel="noopener">M3 Inc (2413 JP)</a> Partial Tender Offer for <a href="https://www.smartkarma.com/entities/benefit-one-inc" target="_blank" data-smartkarma-citation="entities:14502:1" rel="noopener">Benefit One Inc (2412 JP)</a> was due to expire, M3 extended it another 20 days.</li>
<li>
<a href="https://www.smartkarma.com/entities/dai-ichi-life-insurance" target="_blank" data-smartkarma-citation="entities:1109:1" rel="noopener">Dai Ichi Life Insurance (8750 JP)</a> several days ago extended their expected start date by weeks - from mid-January to early February. </li>
<li>The wording in the new <a href="https://corporate.m3.com/assets.ctfassets.net/1pwj74siywcy/4uecKStlttjhRmZYyPSB6C/944bc5119e67c0b1780c24aac8936476/Public_E_20240116.pdf" target="_blank" rel="noopener">document</a> from M3 is curious. It bears examination. As does the strategy positioning and choice of each of the participants. </li>
</ul>


Today, the day before the previously extended M3 Inc (2413 JP) Partial Tender Offer for Benefit One Inc (2412 JP) was due to expire, M3 extended it another 20 days.

Dai Ichi Life Insurance (8750 JP) several days ago extended their expected start date by weeks - from mid-January to early February. 
The wording in the new document from M3 is curious. It bears examination. As does the strategy positioning and choice of each of the participants. 


<ul>
<li>Today post-close, life insurer <a href="https://www.smartkarma.com/entities/dai-ichi-life-insurance" target="_blank" data-smartkarma-citation="entities:1109:1" rel="noopener">Dai Ichi Life Insurance (8750 JP)</a> announced plans to launch a Tender Offer to buy out all minorities in <a href="https://www.smartkarma.com/entities/benefit-one-inc" target="_blank" data-smartkarma-citation="entities:14502:1" rel="noopener">Benefit One Inc (2412 JP)</a> at ¥1,800/share. </li>
<li>M3's Partial (55%) Tender at ¥1,600/share ending next week is obviously a question. </li>
<li>This is GREAT news for M&amp;A in Japan. It's good for holders of Benefit One and <a href="https://www.smartkarma.com/entities/pasona-group-inc" target="_blank" data-smartkarma-citation="entities:15778:1" rel="noopener">Pasona Group (2168 JP)</a> too.</li>
</ul>


Today post-close, life insurer Dai Ichi Life Insurance (8750 JP) announced plans to launch a Tender Offer to buy out all minorities in Benefit One Inc (2412 JP) at ¥1,800/share. 
M3's Partial (55%) Tender at ¥1,600/share ending next week is obviously a question. 
This is GREAT news for M&amp;A in Japan. It's good for holders of Benefit One and Pasona Group (2168 JP) too.


Dai-Ichi Life (8750) Proposes a Full Takeover of Benefit One (2412), Overbidding M3

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>In 2020 and 2021 we had nine conviction calls, four of which returned over 50% within just over a year.</li>
<li>Three more returned close to 40%, one returned 15% and just one was an abject failure returning -39%. </li>
<li>On average, alpha generation was 24.3% and our 2022 names are off to a good start putting up 14.7% in alpha in just over a month and a half.</li>
</ul>


In 2020 and 2021 we had nine conviction calls, four of which returned over 50% within just over a year.
Three more returned close to 40%, one returned 15% and just one was an abject failure returning -39%. 
On average, alpha generation was 24.3% and our 2022 names are off to a good start putting up 14.7% in alpha in just over a month and a half.


A Belated Look Back at Our 2020 and 2021 Conviction Calls and a Look Ahead to 2022

Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nihon-chouzai-co-ltd" target="_blank" data-smartkarma-citation="entities:5873:1" rel="noopener">Nihon Chouzai (3341 JP)</a> is an integrated healthcare company whose core business is the operation of dispensing pharmacies.</li>
<li>In FY03/23, Nihon Chouzai reported sales of JPY313.3bn, operating profit of JPY7.6bn, recurring profit of JPY7.7bn, and net income attributable to owners of the parent of JPY4.5bn.</li>
<li>Nihon Chouzai Co., Ltd. announced the retirement of treasury shares.</li>
</ul>



Nihon Chouzai (3341 JP) is an integrated healthcare company whose core business is the operation of dispensing pharmacies.
In FY03/23, Nihon Chouzai reported sales of JPY313.3bn, operating profit of JPY7.6bn, recurring profit of JPY7.7bn, and net income attributable to owners of the parent of JPY4.5bn.
Nihon Chouzai Co., Ltd. announced the retirement of treasury shares.


David Blennerhassett

<ul>
<li>For the month of February 2024, 15 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$20bn.</li>
<li>The average premium for the new transactions announced (or first discussed) in February was ~33%.</li>
<li>This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.</li>
</ul>


For the month of February 2024, 15 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$20bn.
The average premium for the new transactions announced (or first discussed) in February was ~33%.
This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.


(Mostly) Asia M&A, Feb 2024: Lawson, Altium, CSR, TCM, Boral, APM, Roland DG, Ssangyong Cement

Japan

M3, Inc. supplies medical information services for doctors through the Internet. The Company also supports marketing of pharmaceutical companies and medical equipment manufacturers.

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M3 Inc (2413 JP)

Benefit One (2412): The Plot Thickens

Dai-Ichi Life extended its "expected Tender launch" by a couple of weeks about 5 days ago. That went past M3's TOB end. BenefitOne asked them to...

Travis Lundy

Dai-Ichi Life (8750) Proposes a Full Takeover of Benefit One (2412), Overbidding M3

Dai Ichi Life launches a last-minute overbid for all of Benefit One (2412), gazumping the M3 deal. This puts Benefit One's Board in a quandary. But...

Travis Lundy

A Belated Look Back at Our 2020 and 2021 Conviction Calls and a Look Ahead to 2022

We take a look back at our conviction calls from 2020 and 2021 to assess performance and put the strong start to our 2022 names in context.

Mio Kato

Nihon Chouzai (3341): Q3 FY03/24 Update

Nihon Chouzai is an integrated healthcare company focused on operating dispensing pharmacies, reporting solid financial performance and announcing...

Shared Research

(Mostly) Asia M&A, Feb 2024: Lawson, Altium, CSR, TCM, Boral, APM, Roland DG, Ssangyong Cement

For the month of February, 20 new deals were discussed on Smartkarma with an overall deal size of ~US$20bn. The average premium for the new deals...

David Blennerhassett

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52-week Range

Market Cap (USDm)

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Benefit One (2412): The Plot Thickens

Dai-Ichi Life extended its "expected Tender launch" by a couple of weeks about 5 days ago. That went past M3's TOB end. BenefitOne asked them to...

Travis Lundy

Dai-Ichi Life (8750) Proposes a Full Takeover of Benefit One (2412), Overbidding M3

Dai Ichi Life launches a last-minute overbid for all of Benefit One (2412), gazumping the M3 deal. This puts Benefit One's Board in a quandary. But...

Travis Lundy

A Belated Look Back at Our 2020 and 2021 Conviction Calls and a Look Ahead to 2022

We take a look back at our conviction calls from 2020 and 2021 to assess performance and put the strong start to our 2022 names in context.

Mio Kato

Nihon Chouzai (3341): Q3 FY03/24 Update

​Nihon Chouzai is an integrated healthcare company focused on operating dispensing pharmacies, reporting solid financial performance and announcing...

Shared Research

(Mostly) Asia M&A, Feb 2024: Lawson, Altium, CSR, TCM, Boral, APM, Roland DG, Ssangyong Cement

For the month of February, 20 new deals were discussed on Smartkarma with an overall deal size of ~US$20bn. The average premium for the new deals...

David Blennerhassett

Nihon Chouzai is an integrated healthcare company focused on operating dispensing pharmacies, reporting solid financial performance and announcing...