Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/paris-miki-holdings-inc" target="_blank" data-smartkarma-citation="entities:15251:1" rel="noopener">Paris Miki Holdings (7455 JP)</a> announced the Tane family Holdco would buy out the company in an "MBO" at ¥581, or 4.8x current year EBITDA. </li>
<li>World famous eyeglass/sunglass manufacturer Luxottica bought 13.8% of the company in the low ¥300s almost stopping about a year ago. They might complain, but Paris Miki is a big outlet.</li>
<li>This looks like it gets done. The family+crossholders+ESOP+warrants have 65% of the expanded share count. Those who would complain would need to do so soon, and loudly.</li>
</ul>


Today after the close, Paris Miki Holdings (7455 JP) announced the Tane family Holdco would buy out the company in an "MBO" at ¥581, or 4.8x current year EBITDA. 
World famous eyeglass/sunglass manufacturer Luxottica bought 13.8% of the company in the low ¥300s almost stopping about a year ago. They might complain, but Paris Miki is a big outlet.
This looks like it gets done. The family+crossholders+ESOP+warrants have 65% of the expanded share count. Those who would complain would need to do so soon, and loudly.


[Japan M&A] Paris Miki Is Indeed an MBO Target; Luxottica May Complain But Tough To Block

Research Coverage of Japanese Listed Companies, Shared Research Inc

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<ul><li>Sales reached JPY26.2bn (+0.2% YoY), with operating profit at JPY1.4bn (+16.0% YoY), and net income JPY844mn (+18.2% YoY).</li><li>Domestic sales were stable, with increased average eyeglass prices, but unit sales declined due to cost-conscious consumer behavior.</li><li>Overseas sales were affected by the China subsidiary's decline, despite improved profitability from closing unprofitable stores.</li></ul>

Sales reached JPY26.2bn (+0.2% YoY), with operating profit at JPY1.4bn (+16.0% YoY), and net income JPY844mn (+18.2% YoY).Domestic sales were stable, with increased average eyeglass prices, but unit sales declined due to cost-conscious consumer behavior.Overseas sales were affected by the China subsidiary's decline, despite improved profitability from closing unprofitable stores.

Paris Miki Holdings (7455 JP): 1H FY03/26 flash update

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Arun George

IPOs and Catalysts/Events

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<ul>
<li>
<a href="https://www.smartkarma.com/entities/paris-miki-holdings-inc" target="_blank" data-smartkarma-citation="entities:15251:1" rel="noopener">Paris Miki Holdings (7455 JP)</a> has recommended a Chairman-led MBO at JPY581, a 48.6% premium to the last close price.</li>
<li>While the offer is arguably light as it is marginally below book value (P/B of 0.99x), it is above the midpoint of the IFA DCF valuation range. </li>
<li>The offer represents a 10-year high. <a target="_blank">Luxottica Group (LUX IM)</a>, the second-largest shareholder, has not signalled whether it will tender, but it would struggle to derail the offer.</li>
</ul>



Paris Miki Holdings (7455 JP) has recommended a Chairman-led MBO at JPY581, a 48.6% premium to the last close price.
While the offer is arguably light as it is marginally below book value (P/B of 0.99x), it is above the midpoint of the IFA DCF valuation range. 
The offer represents a 10-year high. Luxottica Group (LUX IM), the second-largest shareholder, has not signalled whether it will tender, but it would struggle to derail the offer.


Paris Miki (7455 JP): Chairman-Led MBO Likely Done Despite Luxottica’s Unclear Intentions

<ul>
<li>The situation at Paris Miki has been relatively non-salutary the last many years til 2022. The stock has underperformed peers in sales growth and has dropped sales points. </li>
<li>The company has a decent relationship with one of its main suppliers, global eyewear giant <a href="https://www.smartkarma.com/entities/luxottica-group-spa" target="_blank" data-smartkarma-citation="entities:21203:1" rel="noopener">Luxottica Group (LUX IM)</a>, which just added to their stake recently, aggressively. </li>
<li>The company is getting slow-kicked out of TOPIX, but revival appears in the works. It kind of looks like a setup for an MBO.</li>
</ul>


The situation at Paris Miki has been relatively non-salutary the last many years til 2022. The stock has underperformed peers in sales growth and has dropped sales points. 
The company has a decent relationship with one of its main suppliers, global eyewear giant Luxottica Group (LUX IM), which just added to their stake recently, aggressively. 
The company is getting slow-kicked out of TOPIX, but revival appears in the works. It kind of looks like a setup for an MBO.


Paris Miki (7455 JP) - Corrected Vision - Is This A Setup For an MBO?

<ul><li>Sales decreased YoY to JPY12.5bn, with operating profit at JPY312mn and recurring profit at JPY355mn. </li><li>Paris Miki Inc. reported sales of JPY11.1bn, with operating profit at JPY426mn and store count at 637. </li><li>Overseas sales were JPY1.4bn, with an operating loss of JPY114mn and no changes in store count.</li></ul>

Sales decreased YoY to JPY12.5bn, with operating profit at JPY312mn and recurring profit at JPY355mn. Paris Miki Inc. reported sales of JPY11.1bn, with operating profit at JPY426mn and store count at 637. Overseas sales were JPY1.4bn, with an operating loss of JPY114mn and no changes in store count.

Paris Miki Holdings (7455 JP): Q1 FY03/26 flash update 

Japan

PARIS MIKI HOLDINGS Inc. is a retailer of eyeglasses, contact lenses and other related goods.  The Company operates chain stores in Japan and overseas markets. Paris Miki also sells hearing aid.

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Paris Miki Holdings (7455 JP)

[Japan M&A] Paris Miki Is Indeed an MBO Target; Luxottica May Complain But Tough To Block

The Paris Miki MBO (not unexpected) is being done cheaply. Cash and securities rich so the Adjusted EV makes this buy cheap at 0.25x EV/Revenue....

Travis Lundy