In today’s briefing:
- Resonac Holdings – Improving Mix, Expanding Margins, and a Clear Case for Re-Rating
- [Japan M&A] ParentCo Finally Buys Out Canon Elec (7739 JP) – OK Premium, Meh Process, No Synergies
- Toyoda Gosei (7282 JP): The Current Playbook
- Asia-Pac M&A Weekly Wrap: Mandom, Monash IVF, National Storage REIT, Iress, Digital Holdings, Grindr
- Raccoon Holdings, Inc. (3031 JP): 1H FY04/26 flash update
Resonac Holdings – Improving Mix, Expanding Margins, and a Clear Case for Re-Rating
- Semiconductor segment drives structural margin expansion, now contributing over 100% of core profit with record Q3 performance.
- Legacy Chemicals and Graphite remain weak, but consolidated EBITDA outlook for FY2026–27 strengthens on improving mix.
- Forward valuation supports ¥8,000 target; Resonac trades at a discount to global semiconductor-materials peers despite rising semis exposure.
[Japan M&A] ParentCo Finally Buys Out Canon Elec (7739 JP) – OK Premium, Meh Process, No Synergies
- Friday post-close, parent Canon Inc (7751 JP) announced a buyout of subsidiary Canon Electronics (7739 JP). The ¥3,650/share offer is supported and recommended (to shareholders) by Target Co management.
- This is the least surprising of parent-subsidiary buyout situations, but it took some time. I expect there are some funds already long a basket of these, including this one.
- This is not a very fair procedure. The result is therefore, unfair. And no synergies to boot. But it is a 30+% premium to last, and Canon already owns 55%.
Toyoda Gosei (7282 JP): The Current Playbook
- Since the announcement of the US$0.8 billion secondary offering, Toyoda Gosei (7282 JP)’s shares have declined 4.9% to the undisturbed price of JPY3,754 per share (20 November).
- It is instructive to look at recent large Japanese placements to understand the potential trading pattern. Toyoda’s share decline is better than the median of recent large placements.
- The offering will likely be priced on 1 December. The average large Japanese placement tends to generate positive returns.
Asia-Pac M&A Weekly Wrap: Mandom, Monash IVF, National Storage REIT, Iress, Digital Holdings, Grindr
- I tally 35 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
- Three new deals were discussed on Smartkarma this week: Qube Holdings (QUB AU), Monash IVF (MVF AU), and National Storage REIT (NSR AU).
- Key updates/news also took place on: Iress Ltd (IRE AU), ANE Cayman Inc (9956 HK), Digital Holdings Inc (2389 JP), and Grindr (GRND US).
Raccoon Holdings, Inc. (3031 JP): 1H FY04/26 flash update
- Revenue increased by 2.7% YoY to JPY3.1bn, with EC business up 6.8% and Financial business down 2.6%.
- Operating profit decreased 7.3% YoY to JPY575mn, with a 2.4pp rise in GPM and 4.3pp increase in SG&A ratio.
- Financial business segment profit rose 7.2% YoY to JPY402mn, with external payments handled growing 11.2% YoY.
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