Daily Brief Japan: Soft99 Corp, Shibaura Electronics, Hisamitsu Pharmaceutical Co, Isuzu Motors, GA Technologies and more

• KeePer Technical Laboratory (6036 JP) has switched its allegiance from the Soft99 Corp (4464 JP) MBO by agreeing to accept the higher Effissimo offer. 
• KeePer’s change of heart sets a huge precedent and signals that irrevocables are unenforceable and fiduciary duty outweighs a promise to tender.
• Nevertheless, the outcome is still not set in stone. Effissimo’s chances of success have increased, but the MBO still retains a long-shot chance of success.

• I tally 42 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
• Two new deal was discussed on Smartkarma this week: Larvotto Resources (LRV AU) and Minmetals Land (230 HK).
• Key updates/news took place on: Apiam Animal Health (AHX AU), Lynch Group Holdings (LGL AU), Joy City Property (207 HK), Shibaura Electronics (6957 JP), and Mandarin Oriental International (MAND SP).

• Hisamitsu Pharmaceutical Co (4530 JP) reported revenue of ¥34.7B in 1HFY26 down 1% YoY, mainly dragged by subdued performance by Salonpas focused OTC pharmaceutical products.
• Rx business revenues grew 6% as Zicthoru, Apohide, Combipatch,Vivelle-Dot etc clocked healthy numbers excepting Mohrus product line.
• Hisamitsu reiterated FY26 guidance expecting revenue to be ¥165B with profits growth expected to decelerate on higher cost.

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlights: Currently nine pair trade opportunities across four markets and four sectors persist.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• GA Technologies is a high-growth PropTech leader in Japan, driving the digital transformation of the traditionally analog real estate industry through its comprehensive online platform, RENOSY.
• The company has demonstrated an exceptional revenue growth trajectory, underpinned by its core RENOSY marketplace and the expansion of its B2B SaaS offerings through its subsidiary, ITANDI. Recent M&A activity signals a strategic push into data-driven services and international markets, including the US.
• While profitability is improving, margins remain thin, and the business is exposed to the cyclical nature of the real estate market and rising competition. Future success hinges on scaling its platform, achieving operating leverage, and successfully integrating acquisitions.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.