Daily BriefsJapan

Japan: Shinsei Bank, Monex Group Inc, Ferrotec Corp, Sumitomo Metal Mining and more

In today’s briefing:

  • Shinsei EGM:  Govt May Vote AGAINST But Could Shinsei Rig The Vote?
  • Monex – Examining the Domestic Business
  • Ferrotec Placement – Small Deal for Accretion that Will Take a While
  • SMM – Important Breakthrough for Li-Ion Battery Recycling

Shinsei EGM:  Govt May Vote AGAINST But Could Shinsei Rig The Vote?

By Travis Lundy

  • Overnight, NHK and Nikkei reported that the Deposit Insurance Corporation of Japan is leaning towards voting AGAINST the Poison Pill in the Shinsei EGM Thursday.
  • Given SBI has 20.32% of the vote and the DICJ has 23.31%, that would make passage of the Poison Pill defence more likely to fail. 
  • Investors should be looking at what could happen if the vote fails. 

Monex – Examining the Domestic Business

By Mio Kato

  • Monex’s SPAC of its TradeStation business highlighted the hidden potential of its non-crypto assets.
  • While its domestic business has traditionally been volatile and not grown profit especially quickly that appears to be changing.
  • We examine the potential of the company’s regional bank tie-ups below.

Ferrotec Placement – Small Deal for Accretion that Will Take a While

By Zhen Zhou, Toh

  • Ferrotec Corp (6890 JP) is looking to raise about US$200m in its placement to fund its expansion and paydown debt.
  • The placement will be used to fund capital investment in a number of subsidiaries over a few stages. Hence, accretion will take time.
  • The deal scored well on our framework owing to its strong momentum, undemanding valuation and good track record.

SMM – Important Breakthrough for Li-Ion Battery Recycling

By Mio Kato

  • The Nikkei reports that Sumitomo Metal Mining has developed a method to more effectively recycle Li-Ion battery materials. 
  • Importantly, lithium can be recycled in addition to copper, nickel and cobalt and SMM expects costs to be competitive. 
  • This is positive news but timelines also illustrate the hurdles for a quick transition.

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