Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>One Homecenter operator Kohnan Shoji (7516) is buying the minority holdings in another homecenter operator <a href="https://www.smartkarma.com/entities/alleanza-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:29288:1" rel="noopener">Alleanza Holdings Co Ltd (3546 JP)</a> to co-own it with another homecenter/retailer Valor Holdings (9956).</li>
<li>The price is not terribly compelling, but it is a premium to recent trading. I find it a bit surprising Valor isn't buying the rest. </li>
<li>This probably gets done. One could agitate but if an activist is left with a large minority stake, what then? </li>
</ul>


One Homecenter operator Kohnan Shoji (7516) is buying the minority holdings in another homecenter operator Alleanza Holdings Co Ltd (3546 JP) to co-own it with another homecenter/retailer Valor Holdings (9956).
The price is not terribly compelling, but it is a premium to recent trading. I find it a bit surprising Valor isn't buying the rest. 
This probably gets done. One could agitate but if an activist is left with a large minority stake, what then? 


[Japan M&A] Kohnan Shoji to Buy Out Minorities in Alleanza (3546 JP); Inexpensive But Probably Done

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>Aeon is continuing its programme of subsidiary consolidation and reorganisation, with profitability improving rapidly as a result. </li>
<li>In the capital, Aeon Food Style will consolidate multiple banners, while in Kansai, Daiei will merge with Kohyo.</li>
<li>Aeon is (finally) moving towards a much more consolidated model, reducing duplication, and fusing large procurement capacity with localised knowledge but there is still so much fat to cut.</li>
</ul>


Aeon is continuing its programme of subsidiary consolidation and reorganisation, with profitability improving rapidly as a result. 
In the capital, Aeon Food Style will consolidate multiple banners, while in Kansai, Daiei will merge with Kohyo.
Aeon is (finally) moving towards a much more consolidated model, reducing duplication, and fusing large procurement capacity with localised knowledge but there is still so much fat to cut.


Aeon Restructures Mid-Sized Supermarkets in Kansai and Tokyo but Is It Enough?

<ul>
<li>Deep discounter OK Super’s entry into the Kansai market is causing local competitors real headaches –one estimate says it has taken 10% share around its first store already. </li>
<li>OK has exposed just how derivative most existing chains have become and, with the introduction of genuine price competition at a time when consumers are increasingly price sensitive</li>
<li>While OK Super is a private company, some of the competitors are listed like Kansai Food Market who, without new ideas, will suffer in the next three years.</li>
</ul>


Deep discounter OK Super’s entry into the Kansai market is causing local competitors real headaches –one estimate says it has taken 10% share around its first store already. 
OK has exposed just how derivative most existing chains have become and, with the introduction of genuine price competition at a time when consumers are increasingly price sensitive
While OK Super is a private company, some of the competitors are listed like Kansai Food Market who, without new ideas, will suffer in the next three years.


OK Super: Disrupting Kansai Supermarket Sector

<ul>
<li>After seeing Trial acquire Seiyu, Chubu-based supermarket group, Valor, has announced it will expand into other regions too, accelerating its plans by two years. </li>
<li>It hopes to take advantage of the current disruption happening in the supermarket sector.</li>
<li>First stop will be Kansai which is ripe for disruption given the poor competitive positioning of the incumbents.</li>
</ul>


After seeing Trial acquire Seiyu, Chubu-based supermarket group, Valor, has announced it will expand into other regions too, accelerating its plans by two years. 
It hopes to take advantage of the current disruption happening in the supermarket sector.
First stop will be Kansai which is ripe for disruption given the poor competitive positioning of the incumbents.


<ul>
<li>Rakuten still gets a lot of flak for its mobile business but its core e-commerce operation continues to improve.</li>
<li>Rakuten will launch Rakuten Mart this month,  an online supermarket but with Rakuten Ichiba vendors too.</li>
<li>Online food retailing is becoming a major source of competition with Amazon, Aeon and Seven &amp; I all investing heavily but Rakuten is holding its own.</li>
</ul>


Rakuten still gets a lot of flak for its mobile business but its core e-commerce operation continues to improve.
Rakuten will launch Rakuten Mart this month,  an online supermarket but with Rakuten Ichiba vendors too.
Online food retailing is becoming a major source of competition with Amazon, Aeon and Seven &amp; I all investing heavily but Rakuten is holding its own.


Japan

VALOR HOLDINGS CO., LTD. is a chain store operator which handles perishables, general foods, and daily-use sundry goods.  The Company is active to diversify into new business including home centers, restaurants, fitness clubs, and pet shops. Valor is based in Gifu area and moving into Aichi, Kanagawa, and Tokyo.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Valor Holdings (9956 JP)

[Japan M&A] Kohnan Shoji to Buy Out Minorities in Alleanza (3546 JP); Inexpensive But Probably Done

This is a straightforward buyout of minorities in a listed operator by a another listed strategic operator. But it results in a strange JV it...

Travis Lundy

Aeon Restructures Mid-Sized Supermarkets in Kansai and Tokyo but Is It Enough?

Aeon is streamlining operations through subsidiary consolidation, leading to improved profitability, with further consolidation efforts underway...

Michael Causton

OK Super: Disrupting Kansai Supermarket Sector

OK Super's entry into the Kansai market is shaking up local competitors with its deep discounts, posing a threat to existing chains lacking...

Michael Causton

Valor Responds to Trial-Seiyu Threat

Valor, a Chubu-based supermarket group, accelerates expansion plans after Trial acquires Seiyu, targeting Kansai region for disruption in the...

Michael Causton

Rakuten Mart Launching This Month

Despite criticism of its mobile business, Rakuten's core e-commerce operation is thriving and set to launch Rakuten Mart, an online supermarket,...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Japan M&A] Kohnan Shoji to Buy Out Minorities in Alleanza (3546 JP); Inexpensive But Probably Done

This is a straightforward buyout of minorities in a listed operator by a another listed strategic operator. But it results in a strange JV it...

Travis Lundy

Aeon Restructures Mid-Sized Supermarkets in Kansai and Tokyo but Is It Enough?

​Aeon is streamlining operations through subsidiary consolidation, leading to improved profitability, with further consolidation efforts underway...

Michael Causton

OK Super: Disrupting Kansai Supermarket Sector

​OK Super's entry into the Kansai market is shaking up local competitors with its deep discounts, posing a threat to existing chains lacking...

Michael Causton

Valor Responds to Trial-Seiyu Threat

​Valor, a Chubu-based supermarket group, accelerates expansion plans after Trial acquires Seiyu, targeting Kansai region for disruption in the...

Michael Causton

Rakuten Mart Launching This Month

​Despite criticism of its mobile business, Rakuten's core e-commerce operation is thriving and set to launch Rakuten Mart, an online supermarket,...

Michael Causton

Aeon is streamlining operations through subsidiary consolidation, leading to improved profitability, with further consolidation efforts underway...

OK Super's entry into the Kansai market is shaking up local competitors with its deep discounts, posing a threat to existing chains lacking...

Valor, a Chubu-based supermarket group, accelerates expansion plans after Trial acquires Seiyu, targeting Kansai region for disruption in the...

Despite criticism of its mobile business, Rakuten's core e-commerce operation is thriving and set to launch Rakuten Mart, an online supermarket,...