Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

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 Capital Markets

<p>Founded in 1972 in Osaka, Japan, <a href="https://www.smartkarma.com/entities/roland-corp" target="_blank" data-smartkarma-citation="entities:30727:1" rel="noopener">Roland Corp (7944 JP)</a> is an iconic brand name in the electronic musical instruments industry. Though the company lost its way a bit after the 2007-08 global financial crisis, it still holds a market leading position in the global electronic musical instruments industry.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/678/original/Picture1.png?1605455087" class="editor-image img-responsive" data-smartkarma-image-id="171678"></figure><div class="content-caption">Source: Company Disclosures</div></section><p>On 11th November 2020, Roland Corporation filed for an IPO on the Tokyo Stock Exchange to sell 11.71m shares held by Taiyo Jupiter Holdings. This IPO marks a return to trading six years after Roland Corporation was taken private via a MBO in 2014.</p><p>The book-building period starts from 1<sup>st</sup> of December and runs till the 7<sup>th</sup> of December. The offer price will be announced on the 8<sup>th</sup> of September. The subscription period is from the 9<sup>th</sup> of December to the 14<sup>th</sup> of December, and the expected listing will be on 16<sup>th</sup> December 2020.</p><p>Underwriters to the deal are SMBC Nikko Securities, UBS Securities, Nomura Securities, Matsui Securities, Rakuten Securities, SBI Securities, and Monex Inc.</p>

Founded in 1972 in Osaka, Japan, Roland Corp (7944 JP) is an iconic brand name in the electronic musical instruments industry. Though the company lost its way a bit after the 2007-08 global financial crisis, it still holds a market leading position in the global electronic musical instruments industry.Source: Company DisclosuresOn 11th November 2020, Roland Corporation filed for an IPO on the Tokyo Stock Exchange to sell 11.71m shares held by Taiyo Jupiter Holdings. This IPO marks a return to trading six years after Roland Corporation was taken private via a MBO in 2014.The book-building period starts from 1st of December and runs till the 7th of December. The offer price will be announced on the 8th of September. The subscription period is from the 9th of December to the 14th of December, and the expected listing will be on 16th December 2020.Underwriters to the deal are SMBC Nikko Securities, UBS Securities, Nomura Securities, Matsui Securities, Rakuten Securities, SBI Securities, and Monex Inc.

Roland Corporation IPO: Better Prepared for Cyclicality Than Before

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>Early this morning, the Nikkei carried an article (<a href="https://asia.nikkei.com/Business/Business-Deals/Ex-Takeda-chairman-comes-out-against-Shire-purchase" target="_blank">English version</a>) saying that former <a href="https://www.smartkarma.com/entities/11747" target="_blank" data-smartkarma-citation="entities:11747:1">Takeda Pharmaceutical (4502 JP)</a> CEO and Chairman Kunio Takeda (joined Takeda right out of college in 1961, eventually president and CEO (from 1993 to 2009) and Chairman from 2003 to 2009) had put out through a spokesperson that he was against the deal. </p>
<p>This comes as "a surprise" because of the late date (proxies will generally be due in the next 2-3 days) but is not, strictly speaking, a surprise. Other media outlets like the FT had suggested a couple of weeks ago (and it was believed in some corners for months before) that Kunio Takeda privately opposed the deal and leaned towards the opinion that it was a "high risk deal", not necessarily taking the view of other family member Kazu Takeda (descendant of the family and Takeda voice in the TTBF) who had opposed the deal, partly on the grounds that Takeda <em>“will no longer be a Japanese company”</em> (also FT) if it closes the deal.</p>
<p>The statement by Kunio Takeda suggests less of a nationalistic bent (Kazu Takeda has seemed to lean on the nationalist tone, as has some of the Takeda family opposition to foreigners in past) and more of a thoughtful angle. But in his heyday, he was well-regarded for being aggressive, even in buying businesses overseas.</p>
<blockquote>
<p>A company with no sense of crisis and no appetite for reform will eventually lose the battle against time and disappear.  <strong>Takeda Kunio, Fortune Magazine, 2003</strong></p>
</blockquote>
<p>What does this mean for the shareholder vote on December 5th?</p>
<p>There are precedents to revisit. They are worth a look.</p>
<p>There are also considerations about how the shareholder register has changed (i.e. what you can see vs what you cannot see, and how people vote).</p>
<p></p>
<table class="table table-striped">
<tbody>
<tr>
<td colspan="2">
<h2>Previous Insights in This Series</h2>
</td>
</tr>
<tr>
<td>9-May</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-i-on-drug-deals-and-deckchairs" target="_blank" data-smartkarma-citation="insights:20087">Takeda/Shire I : On Drug Deals and Deckchairs</a></td>
</tr>
<tr>
<td>2-July</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-ii-drugs-divvies-and-agm-votes" target="_blank" data-smartkarma-citation="insights:21733">Takeda/Shire II:  Drugs, Divvies, and AGM Votes</a></td>
</tr>
<tr>
<td>1-Oct</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-iii-egm-announced-drug-deal-coming-together" target="_blank" data-smartkarma-citation="insights:24574">Takeda/Shire III : EGM Announced, Drug Deal Coming Together</a></td>
</tr>
<tr>
<td>19-Nov</td>
<td><a href="https://www.smartkarma.com/insights/takeda-shire-iv-making-drug-deals" target="_blank" data-smartkarma-citation="insights:26018">Takeda/Shire IV:  Making Drug Deals</a></td>
</tr>
</tbody>
</table>

Early this morning, the Nikkei carried an article (English version) saying that former Takeda Pharmaceutical (4502 JP) CEO and Chairman Kunio Takeda (joined Takeda right out of college in 1961, eventually president and CEO (from 1993 to 2009) and Chairman from 2003 to 2009) had put out through a spokesperson that he was against the deal. 
This comes as "a surprise" because of the late date (proxies will generally be due in the next 2-3 days) but is not, strictly speaking, a surprise. Other media outlets like the FT had suggested a couple of weeks ago (and it was believed in some corners for months before) that Kunio Takeda privately opposed the deal and leaned towards the opinion that it was a "high risk deal", not necessarily taking the view of other family member Kazu Takeda (descendant of the family and Takeda voice in the TTBF) who had opposed the deal, partly on the grounds that Takeda “will no longer be a Japanese company” (also FT) if it closes the deal.
The statement by Kunio Takeda suggests less of a nationalistic bent (Kazu Takeda has seemed to lean on the nationalist tone, as has some of the Takeda family opposition to foreigners in past) and more of a thoughtful angle. But in his heyday, he was well-regarded for being aggressive, even in buying businesses overseas.

A company with no sense of crisis and no appetite for reform will eventually lose the battle against time and disappear.  Takeda Kunio, Fortune Magazine, 2003

What does this mean for the shareholder vote on December 5th?
There are precedents to revisit. They are worth a look.
There are also considerations about how the shareholder register has changed (i.e. what you can see vs what you cannot see, and how people vote).





Previous Insights in This Series



9-May
Takeda/Shire I : On Drug Deals and Deckchairs


2-July
Takeda/Shire II:  Drugs, Divvies, and AGM Votes


1-Oct
Takeda/Shire III : EGM Announced, Drug Deal Coming Together


19-Nov
Takeda/Shire IV:  Making Drug Deals




Takeda/Shire V: Tradition vs the Next Generation, Former Chairman Doesn't Support But...

Japan

Roland DG Corporation manufactures color printers and computer related products. The Company's product lines include color printers, vinyl cutters, 3D machines,  and software.  Roland DG has group companies in North and South America, Oceania, Europe.

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Roland DG Corp (6789 JP)

Roland Corporation IPO: Better Prepared for Cyclicality Than Before

Roland Corporation is an iconic brand name in the electronic musical instruments industry. On 11th November 2020, the company filed for an IPO on...

Oshadhi Kumarasiri

Takeda/Shire V: Tradition vs the Next Generation, Former Chairman Doesn't Support But...

Early this morning, the Nikkei carried an article (English version) saying that former Takeda Pharmaceutical (4502 JP) CEO and Chairman Kunio...

Travis Lundy

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