Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>MSFT cancelling leases for AI DC capacity sending semi-cap sharply lower.</li>
<li>Western Digital dropping after finalizing the split of its HDD and Sandisk businesses.</li>
<li>Japan trading houses will be a bright spot after Buffet's letter signals more buying.</li>
</ul>


MSFT cancelling leases for AI DC capacity sending semi-cap sharply lower.
Western Digital dropping after finalizing the split of its HDD and Sandisk businesses.
Japan trading houses will be a bright spot after Buffet's letter signals more buying.


Japan Morning Connection: 2-Days of Tech Weakness to Price in Will Be a Rough Start for Japan

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>
<a href="https://www.smartkarma.com/entities/kadoya-sesame-mills-inc" target="_blank" data-smartkarma-citation="entities:10367:1" rel="noopener">Kadoya Sesame Mills (2612 JP)</a> announced a tender offer from <a href="https://www.smartkarma.com/entities/integral-corp" target="_blank" data-smartkarma-citation="entities:40028:1" rel="noopener">Integral (5842 JP)</a> at JPY2,514, a 3.9% premium to the last close and a 40.2% premium to the undisturbed price.</li>
<li>The offer could increase to JPY2,760 if both <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a> and <a href="https://www.smartkarma.com/entities/mitsui-co-ltd" target="_blank" data-smartkarma-citation="entities:20799:1" rel="noopener">Mitsui &amp; Co Ltd (8031 JP)</a> agree to share buybacks. Two competing bidders remain in the background.</li>
<li>Mitsubishi and Mitsui’s deliberately deferred, non-committal stance facilitates a potentially higher competing bid, particularly as the offer is below the midpoint of the IFA DCF valuation range.</li>
</ul>



Kadoya Sesame Mills (2612 JP) announced a tender offer from Integral (5842 JP) at JPY2,514, a 3.9% premium to the last close and a 40.2% premium to the undisturbed price.
The offer could increase to JPY2,760 if both Mitsubishi Corp (8058 JP) and Mitsui &amp; Co Ltd (8031 JP) agree to share buybacks. Two competing bidders remain in the background.
Mitsubishi and Mitsui’s deliberately deferred, non-committal stance facilitates a potentially higher competing bid, particularly as the offer is below the midpoint of the IFA DCF valuation range.


Kadoya (2612 JP): Integral's Unconventional Offer With Competing Bidders Lurking

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Today, regional supermarket operator <a href="https://www.smartkarma.com/entities/life-corp" target="_blank" data-smartkarma-citation="entities:1743:1" rel="noopener">Life Corp (8194 JP)</a> announced a TOB on processed foods and supermarket services outsourcee <a href="https://www.smartkarma.com/entities/albis-co-ltd" target="_blank" data-smartkarma-citation="entities:16344:1" rel="noopener">Albis Co Ltd (7475 JP)</a>. </li>
<li>Albis is a TOPIX stock which will be announced as a DELETE next month. MitCorp owns 16.6%. Other crossholders hold 20+%. Foreigners hold nothing. Retail most of the rest.</li>
<li>This likely gets done. It's tiny. Illiquidish. Another smallcap disappearing to earn synergies without paying for them.</li>
</ul>


Today, regional supermarket operator Life Corp (8194 JP) announced a TOB on processed foods and supermarket services outsourcee Albis Co Ltd (7475 JP). 
Albis is a TOPIX stock which will be announced as a DELETE next month. MitCorp owns 16.6%. Other crossholders hold 20+%. Foreigners hold nothing. Retail most of the rest.
This likely gets done. It's tiny. Illiquidish. Another smallcap disappearing to earn synergies without paying for them.


[Japan M&A] MitCorp Affiliate Life Corp (8194) Launches Tender for MitCorp Affiliate Albis (7475)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/albis-co-ltd" target="_blank" data-smartkarma-citation="entities:16344:1" rel="noopener">Albis Co Ltd (7475 JP)</a> announced a tender offer from <a href="https://www.smartkarma.com/entities/life-corp" target="_blank" data-smartkarma-citation="entities:1743:1" rel="noopener">Life Corp (8194 JP)</a> at JPY3,780, a 51.2% premium to the last close of JPY2,500.  </li>
<li>Despite the lack of an auction and being marginally below book value (P/B of 0.95x), the offer is attractive compared to historical trading ranges and peer multiples.</li>
<li>The offer is above the midpoint of the target IFA’s DCF valuation range. The required minority acceptance rate to meet the lower limit is achievable. This is a done deal. </li>
</ul>



Albis Co Ltd (7475 JP) announced a tender offer from Life Corp (8194 JP) at JPY3,780, a 51.2% premium to the last close of JPY2,500.  
Despite the lack of an auction and being marginally below book value (P/B of 0.95x), the offer is attractive compared to historical trading ranges and peer multiples.
The offer is above the midpoint of the target IFA’s DCF valuation range. The required minority acceptance rate to meet the lower limit is achievable. This is a done deal. 


Albis (7475 JP): Life Corp (8194 JP)’s Tender Offer at JPY3,780

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>BOJ sows confusion with hawkish and dovish statements regarding its tightening policy. On a USD-basis the Japan market failed again to break its long-term resistance indicating a "Dead Cat Bounce".</li>
<li>Auto and Semiconductor sectors pressured by US trade policies and Trading Companies are affected by JPY strength.  US rejection of <strong><a href="https://www.smartkarma.com/entities/nippon-steel-corporation" target="_blank" data-smartkarma-citation="entities:961:1" rel="noopener">Nippon Steel Corporation (5401 JP)</a></strong>merger affects Japan steel sector.</li>
<li>Higher domestic yields is a catalyst to reverse the large money flows from Japan during the Kuroda years.</li>
</ul>


BOJ sows confusion with hawkish and dovish statements regarding its tightening policy. On a USD-basis the Japan market failed again to break its long-term resistance indicating a "Dead Cat Bounce".
Auto and Semiconductor sectors pressured by US trade policies and Trading Companies are affected by JPY strength.  US rejection of Nippon Steel Corporation (5401 JP)merger affects Japan steel sector.
Higher domestic yields is a catalyst to reverse the large money flows from Japan during the Kuroda years.


JAPAN:  No Lifeguard on Duty, Swim at Your Own Risk

Japan

Mitsubishi Corporation is a general trading company.  The Company has business groups such as New Business Initiatives, IT & Electronics, Fuels, Metals, Machinery, Chemicals, Living Essentials, and Professional Services.  Mitsubishi diversifies by satellite communications through a joint venture.

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Mitsubishi Corp (8058 JP)

Japan Morning Connection: 2-Days of Tech Weakness to Price in Will Be a Rough Start for Japan

Semi-cap lower as MSFT cancels leases for AI DC capacity, Western Digital dropping after business spit concerns, Japan trading houses in focus...

Andrew Jackson

Kadoya (2612 JP): Integral's Unconventional Offer With Competing Bidders Lurking

Mitsubishi and Mitsui’s deliberately deferred, non-committal stance facilitates a potentially higher competing bid, particularly as the offer is...

Arun George

[Japan M&A] MitCorp Affiliate Life Corp (8194) Launches Tender for MitCorp Affiliate Albis (7475)

Life Corp is launching a TOB on tofu and processed meat company Albis. It's a combination of MitCorp affiliates. The premium is 50+% which is good...

Travis Lundy

Albis (7475 JP): Life Corp (8194 JP)’s Tender Offer at JPY3,780

Despite the lack of an auction and being marginally below book value (P/B of 0.95x), the offer is attractive compared to historical trading ranges...

Arun George

JAPAN: No Lifeguard on Duty, Swim at Your Own Risk

BOJ sends mixed signals on its pace of tightening as the JPY strengthens. Auto, semi and trading company sectors continue to be under pressure. A...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: 2-Days of Tech Weakness to Price in Will Be a Rough Start for Japan

​Semi-cap lower as MSFT cancels leases for AI DC capacity, Western Digital dropping after business spit concerns, Japan trading houses in focus...

Andrew Jackson

Kadoya (2612 JP): Integral's Unconventional Offer With Competing Bidders Lurking

Mitsubishi and Mitsui’s deliberately deferred, non-committal stance facilitates a potentially higher competing bid, particularly as the offer is...

Arun George

[Japan M&A] MitCorp Affiliate Life Corp (8194) Launches Tender for MitCorp Affiliate Albis (7475)

Life Corp is launching a TOB on tofu and processed meat company Albis. It's a combination of MitCorp affiliates. The premium is 50+% which is good...

Travis Lundy

Albis (7475 JP): Life Corp (8194 JP)’s Tender Offer at JPY3,780

Despite the lack of an auction and being marginally below book value (P/B of 0.95x), the offer is attractive compared to historical trading ranges...

Arun George

JAPAN: No Lifeguard on Duty, Swim at Your Own Risk

BOJ sends mixed signals on its pace of tightening as the JPY strengthens. Auto, semi and trading company sectors continue to be under pressure. A...

David Mudd

Semi-cap lower as MSFT cancels leases for AI DC capacity, Western Digital dropping after business spit concerns, Japan trading houses in focus...