In today’s briefing:
- [Japan M&A] Furukawa Battery (6937 JP) Take Private – Ugly Then, Ugly Still, But Now It’s On…
- [Japan M&A] Air Water Takes over C.I. Medical (3540) – Done Deal, Not Bad
- Toyota (7203 JP) Vs. Subaru (7270 JP): Rare Mean-Reversion Setup After Earnings
- Tender Offer and Delisting of Kolon Mobility Group by Kolon Corp
- Keepers Holdings Solid Q2 2025: Multiple Catalysts Lined Up
- With Most Companies Still Unable to Show Results, There Is No Returning to “Stakeholderism”
- KT&G: Solid Results in 2Q 2025 + Treasury Shares Cancellation of 300 Billion Won
- CI Medical (3540 JP): Air Water (4088 JP)’s Tender Offer Is a Done Deal
- Garmin’s Innovation Blitz Across Fitness, Aviation, & Marine Signals Explosive Growth Ahead!
- Hyatt’s Asset-Light Ambition Could Ignite Stock Rally After $2.6 Billion Resort Sale
[Japan M&A] Furukawa Battery (6937 JP) Take Private – Ugly Then, Ugly Still, But Now It’s On…
- 54 weeks ago Advantage Partners and Furukawa Electric announced a deal to take Furukawa Electric (5801 JP) sub Furukawa Battery (6937 JP) private. The acquisition price was LOW.
- Minorities got more – more than book. But the deal included a payment delay allowing BVPS to rise 8.8% from the announcement date. No synergies.
- Furukawa Electric gets to buy back in at a price below book. And because there are cash and securities and lots of net receivables, the operating assets are well below.
[Japan M&A] Air Water Takes over C.I. Medical (3540) – Done Deal, Not Bad
- Today, Air Water Inc (4088 JP) and Ci Medical (3540 JP) announced that the CEO and Air Water who together own 85% would be taking over the company.
- That’s nice. That means it’s a done deal and nobody can do anything about it. Complain all you want, it’s done.
- Helpfully, the Board did its job (as did Shimizu-san – he’s selling most of his stake). This is not badly-priced for an ultimately coercive deal.
Toyota (7203 JP) Vs. Subaru (7270 JP): Rare Mean-Reversion Setup After Earnings
- Context: The Toyota (7203 JP) vs. Subaru (7270 JP) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlight: Both companies in this highly correlated pair reported results on 7 August 2025, opening up a rare opportunity.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
Tender Offer and Delisting of Kolon Mobility Group by Kolon Corp
- Kolon Corp (002020 KS) announced that it is conducting a tender offer and delisting of Kolon Mobility Group (450140 KS).
- The tender offer prices are 4,000 won per common share (20.3% higher than current price) and 5,950 won per preferred share (25.3% higher than current price) for Kolon Mobility Group.
- The tender offer prices and stock swap ratios are especially attractive for Kolon Mobility Group shareholders.
Keepers Holdings Solid Q2 2025: Multiple Catalysts Lined Up
- The Keepers Holdings (KEEPR PM) declared strong Q2FY25 results with revenues/profits up 14%/13% YoY. Net margins declined by 20 bps YoY to 18.7% due to the discounting/fx.
- Currently in the final stages of acquiring Booze Online Inc., the company intends to finalize the transaction by the end of Q3, contingent upon the resolution of regulatory approvals.
- The company trades at 9.7x FY25e, net cash, and an ROCE exceeding 20%. Supported by multiple growth levers, this presents an attractive opportunity within the Philippine domestic consumer discretionary sector.
With Most Companies Still Unable to Show Results, There Is No Returning to “Stakeholderism”
- Most companies have only made superficial improvements to meet numerical targets, and have not attempted to improve capital profitability or stock price valuation through improvements in board practices.
- Very few companies proceed with uncodified practices based on company policy. Conversely, these companies demonstrate a willingness to change from their previous management style.
- Previously, the idea of “treating shareholders equally with all other stakeholders” was widespread among many companies. As a result of “Stakeholderism,” capital profitability and stock price valuations have continued slow.
KT&G: Solid Results in 2Q 2025 + Treasury Shares Cancellation of 300 Billion Won
- KT&G reported solid results in 2Q 2025. It had sales of 1.5 trillion won (up 8.7% YoY) and operating profit of 349.9 billion won (up 8.7% YoY).
- KT&G plans to repurchase and cancel 300 billion won worth of treasury stock starting 8 August.
- KT&G continues to have attractive valuation multiples. It is currently trading at P/E of 12.3x, P/B of 1.6x, and EV/EBITDA of 9.4x.
CI Medical (3540 JP): Air Water (4088 JP)’s Tender Offer Is a Done Deal
- Ci Medical (3540 JP) has recommended a tender offer from Air Water Inc (4088 JP) at JPY1,500, a 48.5% premium to the last close.
- The offer is attractive compared to historical trading ranges and is above the mid-point of the IFA DCF valuation range.
- This is a done deal as the offeror and irrevocable represent an 85.02% ownership ratio, which ensures that the EGM vote for share consolidation will pass.
Garmin’s Innovation Blitz Across Fitness, Aviation, & Marine Signals Explosive Growth Ahead!
- Garmin Limited reported a remarkable second quarter for 2025, showcasing a 20% increase in consolidated revenue to over $1.8 billion, a figure that sets a new quarterly record for the company.
- Each of the company’s business segments—fitness, outdoor, aviation, marine, and auto OEM—posted double-digit growth, contributing to a robust overall financial performance.
- Operating income surged to $472 million, marking a 38% year-overyear increase, as operating margins rose to 26%.
Hyatt’s Asset-Light Ambition Could Ignite Stock Rally After $2.6 Billion Resort Sale
- Hyatt Hotels Corporation has accelerated its pivot toward an asset-light model with a landmark $2.6 billion sale of its Playa Hotels & Resorts all-inclusive portfolio, marking its most significant divestiture yet.
- This transaction shifts 15 resorts across Mexico, the Dominican Republic, and Jamaica from owned real estate to pure management and franchise agreements, unlocking immediate liquidity and reducing capital intensity.
- Coupled with Hyatt’s recent launch of multiple new brands—Hyatt Studios, Hyatt Select, and Unscripted by Hyatt—in the upscale and upper-midscale segments, the company is realigning its growth engine toward higher-margin fee revenue.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
