In today’s briefing:
- 7&I (3382 JP) – Alimentation Couche-Tard Walks, Lobbing a Letter Bomb
- [Japan Activism] Mitsui Matsushima (1518 JP) Buyback Tender – Surprising Results and Implications
- PointsBet (PBH AU): Betr Firms “Superior Offer”. Expect The Board To Reject. Again
- Seven & I Holdings (3382 JP): Dead Money as Couche-Tard Unsurprisingly Walks
- Samsung Jay Lee Cleared by Supreme Court — Market Reaction Could Flip From Consensus
- A Merger Between Hanil Cement and Hanil Hyundai Cement to Become the #1 Cement Player in Korea
- Insiders Selling at Silicon2: Negative Impact on Share Price
7&I (3382 JP) – Alimentation Couche-Tard Walks, Lobbing a Letter Bomb
- Alimentation Couche-Tard (ATD CN) which proposed a takeover to Seven & I Holdings (3382 JP) almost a year ago, has walked. They delivered a letter bomb on the way out.
- The letter is titled “ALIMENTATION COUCHE-TARD ANNOUNCES WITHDRAWAL OF PROPOSAL TO ACQUIRE SEVEN & I HOLDINGS DUE TO LACK OF ENGAGEMENT.” This is not the first time they have complained.
- The letter is not aimed at the 7&i Board or at ATD stakeholders. It is meant to drive a wedge between 7&i active shareholders and its management team. We’ll see.
[Japan Activism] Mitsui Matsushima (1518 JP) Buyback Tender – Surprising Results and Implications
- Today, Mitsui Matsushima (1518 JP) announced the results of its Buyback Tender Offer to repurchase up to 3,999,999 shares (35.8% of shares out ex-Treasury) at ¥5,000/share.
- Murakami-San owned 42% of the voting rights at announcement, then bought more on the dip just below ¥5,000/share.
- The Tender Offer Buyback was “successful” in that it bought back 3.3mm shares. But the result was FAR more interesting than I expected. Surprising Results with Surprising Implications
PointsBet (PBH AU): Betr Firms “Superior Offer”. Expect The Board To Reject. Again
- Back on the 20th June, betr (BBT AU) tabled an all-scrip off-market Offer for PointsBet (PBH AU), with no minimum acceptance condition, which they considered superior to MIXI (2121 JP)‘s.
- Which was a bold statement, as 3.81 new betr shares, at the time, was equivalent to A$1.143/share versus MIXI’s A$1.20/share all-cash Offer. It’s now worth A$1.03/share.
- Last night, betr released its Bidder’s Statement. Terms are unchanged. Offer opens ~31st July. PointsBet was quick to point out, again, the current (low) value of the scrip terms.
Seven & I Holdings (3382 JP): Dead Money as Couche-Tard Unsurprisingly Walks
- Couche-Tard has withdrawn its offer for Seven & I Holdings (3382 JP) by unfairly laying the entire blame on the Board.
- The Board has made credible progress, but the jury is still out on whether the Board’s plan will generate returns. Shareholders remain sceptical as the shares have underperformed the index.
- In theory, the sell-off presents a buying opportunity (My SoTP valuation is JPY 2,376). However, the shares are likely to tread water as there are no near-term catalysts.
Samsung Jay Lee Cleared by Supreme Court — Market Reaction Could Flip From Consensus
- Jay Lee’s clean Supreme Court win may cool Samsung’s governance trade near term. With legal risks gone, there’s less urgency to push structural changes or shuffle shares now.
- Samsung C&T, a hotspot for governance spec flows, may see bids fade as urgency for structural shifts drops; longs on revamp bets might consider fading or shorting amid lingering risks.
- Samsung Life gets relief as forced Elec share sales drop, supporting its stock. Samsung Elec stays neutral. Trade idea: Samsung Life long, Samsung C&T short on cooled governance hopes.
A Merger Between Hanil Cement and Hanil Hyundai Cement to Become the #1 Cement Player in Korea
- After the market close today (17 July), Hanil Cement Co Ltd/New (300720 KS) and Hanil Hyundai Cement (006390 KS) announced that they will merge.
- Through this merger, Hanil Cement (on a combined basis with pro-forma sales of 1.74 trillion won in 2024) will become the largest cement company in Korea after Ssangyong Cement Industrial.
- We expect this merger to have a positive impact on both companies and they are likely to outperform the market and other local cement producers this year.
Insiders Selling at Silicon2: Negative Impact on Share Price
- Insiders have been selling at Silicon2 (257720 KS). The company’s CEO Kim Seong-Woon and other related parties sold 0.37 million shares (0.6% stake) in June 2025.
- Overall, we are concerned about this recent insider selling at Silicon2. We are lowering our rating on Silicon2 to Negative over the next 6-12 months.
- Silicon2 needs to introduce new cosmetic brands such as Joseon Beauty, Round Lab, and Anua that could become very popular on a regular basis. However, that could be a challenge.
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