In today’s briefing:
- Makino Milling (6135) – Trading Through Terms, May Need Investor Pushing
- If Profits Cannot Grow, Tokyo Market Will Be Full of PE and Activist Investors
Makino Milling (6135) – Trading Through Terms, May Need Investor Pushing
- Nidec Corp (6594 JP) in late December proposed an unsolicited takeover of Makino Milling Machine Co (6135 JP), with a 3-month delay before launching a Tender Offer.
- Makino has asked for an extension to the start. Nidec has said no. Makino is going about this the wrong way. Makino needs to assume Nidec thought this through.
- Makino needs to open up the process to other bidders, and investors can help.
If Profits Cannot Grow, Tokyo Market Will Be Full of PE and Activist Investors
- There do not seem to be many companies that have executed large one-time dividends that have subsequently grown in corporate value.
- Now that the exit from deflationary economy is seen and profit margins have room to grow, the environment is conducive to investing in growth, and companies have opportunities to change.
- Limited profit growth is making it easier for market risk-taking investors to leave. Unless companies can grow profitably, Tokyo market will be full of private equity funds and activist investors.
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