Daily BriefsESG

Daily Brief ESG: Combining Equity Method Affiliates and Founder Family Companies Provide Sufficient Number of Targets and more

In today’s briefing:

  • Combining Equity Method Affiliates and Founder Family Companies Provide Sufficient Number of Targets


Combining Equity Method Affiliates and Founder Family Companies Provide Sufficient Number of Targets

By Aki Matsumoto

  • In response to calls from overseas investors to eliminate parent-subsidiary dual listings, the number of listed subsidiaries has decreased, while the number of equity-method affiliates has increased.
  • Some companies that found themselves with no wayout resorted to selling off part of their holdings to transition to equity method affiliates, for the time being, driven by herd mentality.
  • When considering investment strategies focused on parent-subsidiary listings, in the highly liquid Prime Market, equity method affiliates are more promising investment targets than the limited number of listed subsidiaries.

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