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/seven-i-holdings-co-ltd" target="_blank" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> did not dispute the <a href="https://www3.nhk.or.jp/news/html/20241119/k10014643321000.html" target="_blank" rel="noopener">NHK article’s</a> claims that the founding family aims to raise buyout funds by the end of the fiscal year.</li>
<li>Since 13 November, there have been conflicting press reports on the MBO offer price. The NHK article’s implied offer price of JPY3,082 seems the most credible. </li>
<li>The MBO’s aggressive completion timeline pressures <a href="https://www.smartkarma.com/entities/alimentation-couche-tard-inc" target="_blank" data-smartkarma-citation="entities:25103:1" rel="noopener">Alimentation Couche-Tard (ATD CN)</a> to respond by either overbidding, working with the founding family at the back-end or walking away.</li>
</ul>



Seven &amp; I Holdings (3382 JP) did not dispute the NHK article’s claims that the founding family aims to raise buyout funds by the end of the fiscal year.
Since 13 November, there have been conflicting press reports on the MBO offer price. The NHK article’s implied offer price of JPY3,082 seems the most credible. 
The MBO’s aggressive completion timeline pressures Alimentation Couche-Tard (ATD CN) to respond by either overbidding, working with the founding family at the back-end or walking away.


Seven & I Holdings (3382 JP): Evaluating the Potential MBO

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Equity Bottom-Up

<ul>
<li>
<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> isn't the only consumer-facing business Itochu wants more interest in. It has also been mopping up multiple fashion and sports brands recently.</li>
<li>The latest is LeSportsac which Itochu already owned the global rights for but which didn't really translate into success in Japan.. </li>
<li>It will now run the brand with Mash Holdings – Itochu is an increasingly important partner for Mash – which is likely to IPO in a few years.</li>
</ul>



Seven &amp; I Holdings (3382 JP) isn't the only consumer-facing business Itochu wants more interest in. It has also been mopping up multiple fashion and sports brands recently.
The latest is LeSportsac which Itochu already owned the global rights for but which didn't really translate into success in Japan.. 
It will now run the brand with Mash Holdings – Itochu is an increasingly important partner for Mash – which is likely to IPO in a few years.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Days ago we got a dramatic headline about Ito family scion ITO Junro and his family company Ito Kogyo making a bid for <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>. </li>
<li>The stock popped, then fell. Details were not clear. Was the ¥9trln an EV number? A market cap? Was he serious? How would he get funding. Skepticism was rife. </li>
<li>Today we get more headlines from NHK. who says the family wants to raise ¥8trln to take 7&amp;i private by end-Feb 2025.</li>
</ul>


Days ago we got a dramatic headline about Ito family scion ITO Junro and his family company Ito Kogyo making a bid for Seven &amp; I Holdings (3382 JP). 
The stock popped, then fell. Details were not clear. Was the ¥9trln an EV number? A market cap? Was he serious? How would he get funding. Skepticism was rife. 
Today we get more headlines from NHK. who says the family wants to raise ¥8trln to take 7&amp;i private by end-Feb 2025.


7&I (3382) Ito Family MBO - New Urgency for ACT

<ul>
<li>A lot of the talk around the news that Ito family scion Ito Junro had proposed to <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> an MBO was about thwarting Alimentation Couche-Tard.</li>
<li>Several mentioned that this bid - seemingly uncompetitive at the moment - would make ACT back down. I discussed the bid and its repercussions <a href="https://www.smartkarma.com/insights/7-i-3382-jp-an-ito-family-mbo-with-itochu-at-9trln-maybe-information-is-scarce?slug=7-i-3382-jp-an-ito-family-mbo-with-itochu-at-9trln-maybe-information-is-scarce" target="_blank" rel="noopener">here</a>. </li>
<li>Here I suggest an alternate solution which might get everyone what they want.</li>
</ul>


A lot of the talk around the news that Ito family scion Ito Junro had proposed to Seven &amp; I Holdings (3382 JP) an MBO was about thwarting Alimentation Couche-Tard.
Several mentioned that this bid - seemingly uncompetitive at the moment - would make ACT back down. I discussed the bid and its repercussions here. 
Here I suggest an alternate solution which might get everyone what they want.


7&I (3382) - What If...  A Modest Proposal

<ul>
<li>We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.</li>
<li>Highest spreads: <a href="https://www.smartkarma.com/entities/renewable-japan-co-ltd" target="_blank" data-smartkarma-citation="entities:35211:1" rel="noopener">Renewable Japan (9522 JP)</a>, <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a>, <a href="https://www.smartkarma.com/entities/macromill-inc" target="_blank" data-smartkarma-citation="entities:24026:1" rel="noopener">Macromill, Inc (3978 JP)</a>, <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>, <a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection Group (1381 HK)</a>. 
</li>
<li>Lowest spreads: <a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks &amp; System Integr (1973 JP)</a>, <a href="https://www.smartkarma.com/entities/net-one-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:1279:1" rel="noopener">Net One Systems (7518 JP)</a>, <a href="https://www.smartkarma.com/entities/avarga-ltd" target="_blank" data-smartkarma-citation="entities:13105:1" rel="noopener">Avarga Ltd (AVARGA SP)</a>, <a href="https://www.smartkarma.com/entities/t-gaia-corp" target="_blank" data-smartkarma-citation="entities:8339:1" rel="noopener">T Gaia Corp (3738 JP)</a>, <a href="https://www.smartkarma.com/entities/nishimoto-co-ltd" target="_blank" data-smartkarma-citation="entities:44086:1" rel="noopener">Nishimoto (9260 JP)</a>, <a href="https://www.smartkarma.com/entities/elematec-corp" target="_blank" data-smartkarma-citation="entities:2866:1" rel="noopener">Elematec Corp (2715 JP)</a>. </li>
</ul>


We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Renewable Japan (9522 JP), Shanghai Henlius Biotech (2696 HK), Macromill, Inc (3978 JP), Seven &amp; I Holdings (3382 JP), Canvest Environmental Protection Group (1381 HK). 

Lowest spreads: Nec Networks &amp; System Integr (1973 JP), Net One Systems (7518 JP), Avarga Ltd (AVARGA SP), T Gaia Corp (3738 JP), Nishimoto (9260 JP), Elematec Corp (2715 JP). 


Merger Arb Mondays (18 Nov) - Henlius, GAPack, Xingda, Seven & I, Fuji Soft, NEC Networks, Macromill

Japan

Seven & i Holdings Co., Ltd. is a holding company which was established through the merger of Ito-Yokado Co., Seven Eleven Japan Co., and Denny's Japan. The Company plans, manages, and operates mainly convenience stores, supermarkets, and department stores.

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Seven & I Holdings (3382 JP)