Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Winner winner chicken dinner.  A Nikke article suggests a bid higher than ¥6tn for <a href="https://www.smartkarma.com/entities/toyota-industries-corp" target="_blank" data-smartkarma-citation="entities:4500:1" rel="noopener">Toyota Industries (6201 JP)</a>. In addition, people  thinking about ¥18,400/share are going about this incorrectly. </li>
<li>
<a href="https://www.smartkarma.com/entities/contemporary-amperex-technology-catl-co-limited" target="_blank" data-smartkarma-citation="entities:45179:1" rel="noopener">Contemporary Amperex Technology (CATL) (3750 HK)</a> pops on its IPO debut. The HKEx has issued a high concentration warning</li>
<li>
<a href="https://www.smartkarma.com/entities/mitsubishi-logisnext-co-ltd" target="_blank" data-smartkarma-citation="entities:11662:1" rel="noopener">Mitsubishi Logisnext Co., Ltd. (7105 JP)</a> is still ragingly cheap given the move to delist dual parent/sub listings and having a global footprint. Own it here and now.</li>
</ul>


Winner winner chicken dinner.  A Nikke article suggests a bid higher than ¥6tn for Toyota Industries (6201 JP). In addition, people  thinking about ¥18,400/share are going about this incorrectly. 

Contemporary Amperex Technology (CATL) (3750 HK) pops on its IPO debut. The HKEx has issued a high concentration warning

Mitsubishi Logisnext Co., Ltd. (7105 JP) is still ragingly cheap given the move to delist dual parent/sub listings and having a global footprint. Own it here and now.


Last Week in Event SPACE: Toyota Industries, CATL, Mitsubishi Logisnext, Mayne Pharma, Melco

Travis Lundy

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seven-bank-ltd" target="_blank" data-smartkarma-citation="entities:16063:1" rel="noopener">Seven Bank Ltd (8410 JP)</a> has been the ugly duckling of Japan e-banks since it got competition in the form of Rakuten Bank (5838) and SBI Sumishin (7163).</li>
<li>Last year, it was posited, and then confirmed, that <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> wanted to sell down to de-consolidate. NTT Docomo wanted to buy a bank. </li>
<li>I thought it a good match but no deal has been done. So now we get a different deal - it's weird for Itochu, but bodes well for Seven Bank</li>
</ul>



Seven Bank Ltd (8410 JP) has been the ugly duckling of Japan e-banks since it got competition in the form of Rakuten Bank (5838) and SBI Sumishin (7163).
Last year, it was posited, and then confirmed, that Seven &amp; I Holdings (3382 JP) wanted to sell down to de-consolidate. NTT Docomo wanted to buy a bank. 
I thought it a good match but no deal has been done. So now we get a different deal - it's weird for Itochu, but bodes well for Seven Bank


[Japan M&A] Seven Bank (8410) - Seven & I Selldown, Itochu Buy-In, Not on My Bingo Card But Not Bad

<ul>
<li>Today, partway through the day, we got a Bloomberg article suggesting a large-scale buyback was to come. Post-close, we got the full details. </li>
<li>
<a href="https://www.7andi.com/library/dbps_data/_material_/localhost/en/release_pdf/2025_0306_ir01en.pdf" target="_blank" rel="noopener">"Seven &amp; i Holdings Announces Plan to Unlock Shareholder Value Through Leadership Changes and Transformational Capital and Business Initiatives"</a>. </li>
<li>Sale of York. Management change. Update on Special Committee work with ACT. Commitment to return ¥2trln to shareholders via buybacks by FY2030. Higher divs. IPO of 7-Eleven Inc (US).</li>
</ul>


Today, partway through the day, we got a Bloomberg article suggesting a large-scale buyback was to come. Post-close, we got the full details. 

"Seven &amp; i Holdings Announces Plan to Unlock Shareholder Value Through Leadership Changes and Transformational Capital and Business Initiatives". 
Sale of York. Management change. Update on Special Committee work with ACT. Commitment to return ¥2trln to shareholders via buybacks by FY2030. Higher divs. IPO of 7-Eleven Inc (US).


7&I (3382) - A Starting Point for the Standalone Plan - The Good, The Bad, The Ugly

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.

<ul>
<li>The <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> Board announced a plan to unlock and distribute significant value to shareholders.</li>
<li>The initial excitement focused on the positives of leadership changes, US Assets IPO, a higher-than-expected valuation for the Superstore Business and a considerable buyback. </li>
<li>The negatives of a long-dated buyback, inevitable rejection of the Couche-Tard offer, an uncertain US Assets IPO and ongoing HoldCo discount suggest the initial excitement will fizzle out. </li>
</ul>


The Seven &amp; I Holdings (3382 JP) Board announced a plan to unlock and distribute significant value to shareholders.
The initial excitement focused on the positives of leadership changes, US Assets IPO, a higher-than-expected valuation for the Superstore Business and a considerable buyback. 
The negatives of a long-dated buyback, inevitable rejection of the Couche-Tard offer, an uncertain US Assets IPO and ongoing HoldCo discount suggest the initial excitement will fizzle out. 


Seven & I Holdings (3382 JP): Board’s Plan to Unlock Value Is a Stop-Gap Measure

<ul>
<li>The MBO is off. <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP)</a> has apparently not been able to agree with Ito-san on board composition/representation and management control. That the MBO is off isn't surprising.</li>
<li>7&amp;i says they "continue to engage constructively with ACT and alternate proposals but news articles suggest that almost 6mos after proposing an NDA, ACT still haven't had access to financials.</li>
<li>The shares are off hard today to a level below where ACT's first bid was considered "not even worth discussing". There will be questions at the AGM and before.</li>
</ul>


The MBO is off. Itochu Corp (8001 JP) has apparently not been able to agree with Ito-san on board composition/representation and management control. That the MBO is off isn't surprising.
7&amp;i says they "continue to engage constructively with ACT and alternate proposals but news articles suggest that almost 6mos after proposing an NDA, ACT still haven't had access to financials.
The shares are off hard today to a level below where ACT's first bid was considered "not even worth discussing". There will be questions at the AGM and before.


7&I (3382) - MBO Off, SC "Engaging Constructively with ACT", Skepticism Higher, Questions And More

Japan

Seven Bank, Ltd. provides banking services mainly through Automated Teller Machine (ATM) across Japan. The bank cooperates with affiliated financial institutions to establish the nationwide ATM network and provide remote banking services, including deposits and loans.

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Seven Bank Ltd (8410 JP)

Last Week in Event SPACE: Toyota Industries, CATL, Mitsubishi Logisnext, Mayne Pharma, Melco

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

[Japan M&A] Seven Bank (8410) - Seven & I Selldown, Itochu Buy-In, Not on My Bingo Card But Not Bad

Seven & i appears to be en route to selling a stake in Seven Bank to Itochu. I don't see the benefit to Itochu but it's good for Seven Bank,...

Travis Lundy

7&I (3382) - A Starting Point for the Standalone Plan - The Good, The Bad, The Ugly

Some good. Some bad. Some ugly. 7&i's Plan. Big buyback over 5yrs (36% of mktcap). Higher divs. An IPO of US 7-11, sale of York Holdings for...

Travis Lundy

Seven & I Holdings (3382 JP): Board’s Plan to Unlock Value Is a Stop-Gap Measure

The Board’s plan has several positive aspects, such as the considerable buyback. However, it also has several negative aspects, which suggest that...

Arun George

7&I (3382) - MBO Off, SC "Engaging Constructively with ACT", Skepticism Higher, Questions And More

The Ito MBO is off. His main partner balked. News reports suggest disagreement over control. Shares are off hard. News articles suggest management...

Travis Lundy

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