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/kfc-holdings-japan-ltd" target="_blank" data-smartkarma-citation="entities:12358:1" rel="noopener">Kfc Holdings Japan (9873 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/carlyle-group-inc-the" target="_blank" data-smartkarma-citation="entities:33402:1" rel="noopener">Carlyle Group / (CG US)</a> at JPY6,500 per share, a 20.4% premium to the last close. </li>
<li>The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 31.54% ownership ratio.</li>
<li>Due to the <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a> irrevocable, the minimum acceptance condition requires a 48.6% minority acceptance rate. The acceptance condition is achievable as the offer is a knockout bid. </li>
</ul>



Kfc Holdings Japan (9873 JP) has recommended a tender offer from Carlyle Group / (CG US) at JPY6,500 per share, a 20.4% premium to the last close. 
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 31.54% ownership ratio.
Due to the Mitsubishi Corp (8058 JP) irrevocable, the minimum acceptance condition requires a 48.6% minority acceptance rate. The acceptance condition is achievable as the offer is a knockout bid. 


KFC Holdings Japan (9873 JP): Carlyle Finger Lickin' Tender Offer at JPY6,500

<ul>
<li>The Nikkei reports that Carlyle is in the final stages of buying <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a>’s 35% stake in <a href="https://www.smartkarma.com/entities/kfc-holdings-japan-ltd" target="_blank" data-smartkarma-citation="entities:12358:1" rel="noopener">Kfc Holdings Japan (9873 JP)</a>, which will result in a tender offer. </li>
<li>The structure will likely be similar to the <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI Corp (9433 JP)</a>/ <a href="https://www.smartkarma.com/entities/lawson-inc" target="_blank" data-smartkarma-citation="entities:1040:1" rel="noopener">Lawson Inc (2651 JP)</a> tender, where MitCorp provides an irrevocable NOT to accept but vote for share consolidation.</li>
<li>The shares have been up 33.6% since Nikkei flagged the sale on 28 February. KFC Japan will trade in line with peers’ multiples at a JPY5,700 offer.  </li>
</ul>


The Nikkei reports that Carlyle is in the final stages of buying Mitsubishi Corp (8058 JP)’s 35% stake in Kfc Holdings Japan (9873 JP), which will result in a tender offer. 
The structure will likely be similar to the KDDI Corp (9433 JP)/ Lawson Inc (2651 JP) tender, where MitCorp provides an irrevocable NOT to accept but vote for share consolidation.
The shares have been up 33.6% since Nikkei flagged the sale on 28 February. KFC Japan will trade in line with peers’ multiples at a JPY5,700 offer.  


KFC Holdings Japan (9873 JP): Carlyle Edging Towards a Tender Offer

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>Many LGBTQ have been harassed during their job search, and while hiring managers are under-prepared, Monogatari Corporation is one of the few companies that is committed to LGBTQ human rights.</li>
<li>Monogatari Corporation believes that the diversity of individuals is the foundation for creating value, and that a series of individual differentiation enhances the company's competitive advantage as a major differentiation.</li>
<li>Monogatari Corporation's high profit margins and sustained growth give hope that the hypothesis that "companies that care about sexual minorities are more profitable" may be supported.</li>
</ul>


Many LGBTQ have been harassed during their job search, and while hiring managers are under-prepared, Monogatari Corporation is one of the few companies that is committed to LGBTQ human rights.
Monogatari Corporation believes that the diversity of individuals is the foundation for creating value, and that a series of individual differentiation enhances the company's competitive advantage as a major differentiation.
Monogatari Corporation's high profit margins and sustained growth give hope that the hypothesis that "companies that care about sexual minorities are more profitable" may be supported.


A Company in Japan Confirms That "Companies that Take Care of Sexual Minorities Are More Profitable"

<ul>
<li>I have introduced Monogatari Corporation (3097) before as a listed company that has been implementing advanced diversity initiatives. This article will update as I participated in the analyst meeting.</li>
<li>The essence of D&amp;I is to instill a culture of "it's okay for everyone to be different," so that each person is not afraid to voice his or her opinion.</li>
<li>By having each person express their opinion, it creates a culture of discussion within the company.  President Kato says that there are three benefits to this.</li>
</ul>


I have introduced Monogatari Corporation (3097) before as a listed company that has been implementing advanced diversity initiatives. This article will update as I participated in the analyst meeting.
The essence of D&amp;I is to instill a culture of "it's okay for everyone to be different," so that each person is not afraid to voice his or her opinion.
By having each person express their opinion, it creates a culture of discussion within the company.  President Kato says that there are three benefits to this.


Japan's Governance: Diversity Is Strength：Update

<p>In the ESG initiatives, it seems that many Japanese companies are more enthusiastic about E than about S and G. In the case of E, it is relatively easy for Japanese companies, which have a successful experience of setting technical numerical targets such as CO2 emission targets and improving the level of technology through bottom-up efforts led by engineers, to finally achieve high targets. Even with S and G, it is possible to set clear goals and timeframes for improvement without setting numerical targets. I have mentioned several times on this website that respect for human rights, or in other words, understanding of diversity, is crucial for creating a society where people from all different backgrounds can live comfortably. I would like to update the diversity initiatives that I discussed in my previous article "Japan’s Governance: Social and Human Rights.</p>

In the ESG initiatives, it seems that many Japanese companies are more enthusiastic about E than about S and G. In the case of E, it is relatively easy for Japanese companies, which have a successful experience of setting technical numerical targets such as CO2 emission targets and improving the level of technology through bottom-up efforts led by engineers, to finally achieve high targets. Even with S and G, it is possible to set clear goals and timeframes for improvement without setting numerical targets. I have mentioned several times on this website that respect for human rights, or in other words, understanding of diversity, is crucial for creating a society where people from all different backgrounds can live comfortably. I would like to update the diversity initiatives that I discussed in my previous article "Japan’s Governance: Social and Human Rights.

Japan's Governance: Diversity Is Strength

Japan

Monogatari Corporation operates a restaurant chain.  The Company's restaurants include Japanese, BBQ, noodle, and Japanese-style pancake restaurant.

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Monogatari Corp (3097 JP)

KFC Holdings Japan (9873 JP): Carlyle Finger Lickin' Tender Offer at JPY6,500

Due to the MitCorp irrevocable, the minimum acceptance condition requires a 48.6% minority acceptance rate. The acceptance condition is achievable...

Arun George

KFC Holdings Japan (9873 JP): Carlyle Edging Towards a Tender Offer

The shares have increased 33.6% since Nikkei flagged the sale on 28 February. KFC Japan will trade in line with peers’ multiples at a JPY5,700 offer.

Arun George

A Company in Japan Confirms That "Companies that Take Care of Sexual Minorities Are More Profitable"

I would like to discuss the issues on the October 23 Nikkei Newspaper article, ""LGBT Recruitment Without Prejudice: Parties in Charge,...

Metrical Inc

Japan's Governance: Diversity Is Strength：Update

In my previous article, "Diversity is Strength," I introduced Story Corporation (3097) as a company with advanced diversity initiatives. This...

Metrical Inc

Japan's Governance: Diversity Is Strength

Monogatari Corporation is one of the listed companies that is proactively working on diversity. I would like to update the diversity initiatives as...

Metrical Inc

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