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.

Event-Driven

<ul>
<li>In response to media reports, <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> confirmed receiving a non-binding proposal from Junro Ito (founder’s son) and Ito-Kogyo. No terms were disclosed.</li>
<li>Bloomberg suggests an MBO deal worth up to JPY9 trillion (US$58 billion), which implies an offer of JPY3,467.89, a 39.3% premium to the last close price.</li>
<li>The "white knight" MBO undermines <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>’s offer and is a proxy for the restructuring plan's value. Couche-Tard will likely walk if a binding MBO proposal emerges.</li>
</ul>


In response to media reports, Seven &amp; I Holdings (3382 JP) confirmed receiving a non-binding proposal from Junro Ito (founder’s son) and Ito-Kogyo. No terms were disclosed.
Bloomberg suggests an MBO deal worth up to JPY9 trillion (US$58 billion), which implies an offer of JPY3,467.89, a 39.3% premium to the last close price.
The "white knight" MBO undermines Alimentation Couche-Tard (ATD CN)’s offer and is a proxy for the restructuring plan's value. Couche-Tard will likely walk if a binding MBO proposal emerges.


Seven & I Holdings (3382 JP): The Rumoured MBO Price Underscores the Trapped Value

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>In October 2024, <a href="https://www.smartkarma.com/entities/celsys-inc" target="_blank" data-smartkarma-citation="entities:20774:1" rel="noopener">CELSYS (3663 JP)</a>, <a href="https://www.smartkarma.com/entities/pksha-technology-inc" target="_blank" data-smartkarma-citation="entities:26181:1" rel="noopener">PKSHA Technology (3993 JP)</a>, and <a href="https://www.smartkarma.com/entities/genova-inc" target="_blank" data-smartkarma-citation="entities:43939:1" rel="noopener">GENOVA (9341 JP)</a> were included in the TOPIX index.</li>
<li>Next, <a href="https://www.smartkarma.com/entities/wa-inc" target="_blank" data-smartkarma-citation="entities:29189:1" rel="noopener">WA Inc (7683 JP)</a> will be included in TOPIX at the end of December 2024.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
In October 2024, CELSYS (3663 JP), PKSHA Technology (3993 JP), and GENOVA (9341 JP) were included in the TOPIX index.
Next, WA Inc (7683 JP) will be included in TOPIX at the end of December 2024.


TOPIX Inclusions: Who Is Ready (Nov 2024)

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>Our long-term pre-event candidate <a href="https://www.smartkarma.com/entities/celsys-inc" target="_blank" data-smartkarma-citation="entities:20774:1" rel="noopener">CELSYS (3663 JP)</a> has moved to TSE Prime. There will be a TOPIX Inclusion event on 30-Oct-24. The stock has outperformed TOPIX by 43% since <a href="https://www.smartkarma.com/insights/topix-inclusions-who-is-ready-july-2024" target="_blank" rel="noopener">July</a>.</li>
<li>
<a href="https://www.smartkarma.com/entities/pksha-technology-inc" target="_blank" data-smartkarma-citation="entities:26181:1" rel="noopener">PKSHA Technology (3993 JP)</a> and <a href="https://www.smartkarma.com/entities/genova-inc" target="_blank" data-smartkarma-citation="entities:43939:1" rel="noopener">GENOVA (9341 JP)</a> also moved to the TSE Prime market in September and will be having TOPIX Inclusion events at the end of October 2024.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
Our long-term pre-event candidate CELSYS (3663 JP) has moved to TSE Prime. There will be a TOPIX Inclusion event on 30-Oct-24. The stock has outperformed TOPIX by 43% since July.

PKSHA Technology (3993 JP) and GENOVA (9341 JP) also moved to the TSE Prime market in September and will be having TOPIX Inclusion events at the end of October 2024.


TOPIX Inclusions: Who Is Ready (Oct 2024)

<ul>
<li>In response to media reports, <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> confirmed receiving a revised non-binding proposal from <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>. </li>
<li>The rumoured revised offer is US$18.19, a 22.4% premium to the initial US$14.86 offer. The revised terms are attractive vs precedent transactions and analyst price targets.</li>
<li>The Board would cite regulatory concerns and the revised offer's implied discount compared to peer multiples. At tomorrow's results, the Board must present a credible alternative value generation path.</li>
</ul>


In response to media reports, Seven &amp; I Holdings (3382 JP) confirmed receiving a revised non-binding proposal from Alimentation Couche-Tard (ATD CN). 
The rumoured revised offer is US$18.19, a 22.4% premium to the initial US$14.86 offer. The revised terms are attractive vs precedent transactions and analyst price targets.
The Board would cite regulatory concerns and the revised offer's implied discount compared to peer multiples. At tomorrow's results, the Board must present a credible alternative value generation path.


Seven & I Holdings (3382 JP): Pressure Mounts with a Couche-Tard Revised Offer

<ul>
<li>On 13 September, the Ministry of Finance of Japan added 7&amp;I to <a href="https://www.mof.go.jp/policy/international_policy/gaitame_kawase/press_release/20240913.html" target="_blank" rel="noopener">a list of "core" designated companies</a> based on results of voluntary inquiries to all listed companies.</li>
<li>Several media reports suggest that the change in 7&amp;I’s designation to core would complicate the proposed acquisition by <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>. The core designation will not change Couche-Tard's strategy.</li>
<li>The change to 7&amp;I’s designation to core will paradoxically push Couche-Tard to firm up its revised offer. An undemanding valuation protects the downside of a no-deal situation.</li>
</ul>


On 13 September, the Ministry of Finance of Japan added 7&amp;I to a list of "core" designated companies based on results of voluntary inquiries to all listed companies.
Several media reports suggest that the change in 7&amp;I’s designation to core would complicate the proposed acquisition by Alimentation Couche-Tard (ATD CN). The core designation will not change Couche-Tard's strategy.
The change to 7&amp;I’s designation to core will paradoxically push Couche-Tard to firm up its revised offer. An undemanding valuation protects the downside of a no-deal situation.


Seven & I Holdings (3382 JP): Core Designation Does Not Change Couche-Tard’s Calculus

Japan

McDonald's Holdings Company (Japan), Ltd. operates a hamburger fast food restaurant chain throughout Japan.  The Company operates its own stores and franchise stores.

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

Mcdonald's Japan (2702 JP)

Seven & I Holdings (3382 JP): The Rumoured MBO Price Underscores the Trapped Value

The "white knight" MBO undermines Couche-Tard’s offer and is a proxy for the restructuring plan's value. Couche-Tard will likely walk if a binding...

Arun George

TOPIX Inclusions: Who Is Ready (Nov 2024)

There are currently 76 names that satisfy all 5 key Segment Transfer requirements based on current data. Another 70 names can satisfy 4 out of 5...

Janaghan Jeyakumar, CFA

TOPIX Inclusions: Who Is Ready (Oct 2024)

The LONGs (Basket A) have outperformed the SHORTs (Basket B) modestly by 0.62% from 7th October to 30th October. On average, the LONGs are down...

Janaghan Jeyakumar, CFA

Seven & I Holdings (3382 JP): Pressure Mounts with a Couche-Tard Revised Offer

The revised offer will mount pressure to engage. The Board is running out of excuses and will lean heavily on an alternative value generation path...

Arun George

Seven & I Holdings (3382 JP): Core Designation Does Not Change Couche-Tard’s Calculus

The change to 7&I’s designation to core will paradoxically push Couche-Tard to firm up its revised offer. An undemanding valuation protects the...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)