In today’s briefing:
- Flashlight Capital Goes Activist on SECOM (Overhaul Its Overseas Strategy)
- Won’t the “Market Reform” of TSE Growth Market End up Merely Creating a “10-Billion-Yen Club”?
Flashlight Capital Goes Activist on SECOM (Overhaul Its Overseas Strategy)
- Flashlight Capital (Singapore based activist firm) is going activist on Secom Co Ltd (9735 JP), especially demanding Secom’s management team to overhaul the company’s overseas strategy.
- Flashlight Capital has urged SECOM to increase its stakes in S-1 and Taiwan SECOM to at least 50% for under JPY 156 billion to raise overseas revenue to approximately 28%.
- All in all, despite Flashlight Capital’s attempt at overhauling Secom Co’s overseas business, I think realistically any major change could take a long period of time (several years).
Won’t the “Market Reform” of TSE Growth Market End up Merely Creating a “10-Billion-Yen Club”?
- Companies planning IPO on Growth Market now have no choice but to aim for market capitalization of 10 billion yen. Companies with lower market capitalization will list on Standard Market.
- The issue of declining quality in Standard Market—as companies with low growth and small market capitalizations list, and companies with small market capitalizations migrate from Growth Market—will come into focus.
- Can a company that IPOs 15 years after its founding be considered a growth company? This highlights the seriousness of the problem that there are few growth companies in Japan.
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