Casino SPAC is for hardened gamblers only 7 Jun 2022 A legal battle over Okada Manila resort turned physical when its ousted boss seized the property last week. That could scupper its $2.7 bln deal with a U.S. blank-cheque firm. But unfriendly politicians, dubious financial reports and more stack the odds against investors, too.
Toshiba’s big vision may have micro timetable 6 Jun 2022 New boss Taro Shimada wants to de-silo the $19 bln group and focus on data to lift soggy margins. A top line target of 5% growth – levels not met in a decade-plus – underscores the ambition. Yet with a sale process underway, his plans may remain just part of an iterative process.
Nomura and Mitsui cultivate fertile climate ground 31 May 2022 The Japanese duo is buying trees-focused Australian fund manager New Forests. Mitsui also has backed Climate Friendly, which helps farmers sell carbon credits for sustainable agriculture. Done properly, it’s a lucrative and impactful sector deserving of greater investment.
New Toshiba board’s work extends beyond Toshiba 27 May 2022 The embattled $19 bln conglomerate nominated a Houlihan Lokey banker to be chair and directors from pushy investors Elliott and Farallon. The main job now is to end a tortuous saga with a sale. Success would help show Japan’s supine shareholders how dogged engagement pays off.
SoftBank’s Son is running out of ammunition 12 May 2022 The stock market values the $60 bln technology conglomerate at half the sum of its parts. In the past, founder Masayoshi Son has used buybacks to prop up the shares. High leverage and slumping markets make that tricky. More radical measures, like a breakup, seem off the table.
Nissan makes hay while the sun doesn’t shine 12 May 2022 The Japanese car giant logged a $1.7 bln profit in the last fiscal year, back in the black after three years. A weak yen flattered overseas sales, but a cost-cutting campaign and smarter product strategy did more. Such discipline will come in handy for a challenging year ahead.
Japan bank agitator set to prove a sad point 6 May 2022 UK hedge fund Silchester wants $3 bln Bank of Kyoto and three peers to pay higher dividends using income from absurdly outsized equity stakes. It would sensibly deploy cash and put a spotlight on weak lending activities. Alas, being right in Japan is less than half the battle.
Arm IPO bankers will struggle to tell growth story 29 Apr 2022 Owner SoftBank is picking advisers for what CEO Masayoshi Son calls the most significant float in the chip industry’s history. A boost from 5G phones and data-centre demand may lure growth-hungry investors. But that won’t be enough to justify a mooted $60 bln valuation.
Nomura’s malaise comes with dark silver lining 26 Apr 2022 More losses on old mistakes helped drag return on equity down to a dismal 4.3% in the last quarter. But they look almost over, the investment bank is holding up, and shares are outperforming fellow Archegos victim Credit Suisse. Retail pain shows there’s much work ahead.
Chancellor: In praise of slack 7 Apr 2022 Executives spent decades optimising strategies to boost efficiency and returns on equity. That left them exposed to shocks like the global pandemic and invasion of Ukraine. In a world that values spare capacity, Japanese firms look better placed than their American counterparts.
Atypical bear hug should kickstart Toshiba bids 1 Apr 2022 The hostile tactic usually involves pressuring a target with a generous offer. In this case, activist investor Effissimo and buyout shop Bain are squeezing the Japanese conglomerate with an artful display of their desire for a deal. It’s getting harder to avoid running an auction.
Bank of Japan stumbles into defensive minefield 29 Mar 2022 War, Covid-19 and an aggressive-looking Fed are conspiring against Governor Kuroda’s ultra-loose policy. The yen is plunging and government bond yields are up despite BOJ efforts. There’s no easy solution, but doing nothing is risky too.
Toshiba task becomes more Sisyphean 24 Mar 2022 The Japanese conglomerate’s shareholders rejected management’s breakup plan and a hedge fund proposal to solicit buyout bids. It augurs fresh fighting over the board and the strategy. Outside agitators have reason for optimism but the long fight keeps eating away at returns.
SoftBank’s Cruise exit hits self-driving cars hard 21 Mar 2022 Selling its Vision Fund stake in the autonomous unit to largest owner GM is a reminder of the Japanese group’s woes. And the carmaker had to inject $3.5 bln it could have used elsewhere. Any lingering hope that driverless cars are just around the corner is the biggest casualty.
Tokyo gets helpful shove from unhelpful war 21 Mar 2022 Other nations bewail the prospect of $150 oil barrels, but inflation won’t cripple Japan where price growth remains tepid. Russia is a negligible export market for local companies, and the war has already given officials an excuse to restart nuclear plants and end pandemic lockdowns.
Toshiba board rebel mainly helps governance cause 17 Mar 2022 Director and ex-hedgie Raymond Zage will vote for a proposal urging the company to consider buyout bids and share info with investors. He already backed a breakup, opposed by many funds. Even if offers underwhelm, listening to shareholders and opening up would be a good step.
Toshiba’s turmoil undermines its breakup plan 11 Mar 2022 Leading proxy advisers aren’t backing the Japanese conglomerate’s plan to split in two, saying it needs first to fix internal chaos before setting strategy. Activists want the $17 bln firm to study a full sale. If insiders lose the upcoming vote, all options have to be considered.
KKR’s car crash will leave Japan buyout wreckage 10 Mar 2022 Its Marelli mashup of former Nissan and FCA auto-parts units kicked off a $10 bln workout process with lenders. Given the signature industry involved, it’ll be hard to clean up all the debt-related damage. The road ahead for local private equity deals in any sector looks rockier.
Toshiba gets its own taste of investor impatience 8 Mar 2022 The Japanese conglomerate has urged chipmaker Kioxia and majority owner Bain to revive an IPO as quickly as possible. It’s eager to cash in a 41% stake as Toshiba’s own aggrieved shareholders push back on a breakup plan. At least the buyout shop will prioritise maximising value.
Toshiba CEO change sends promising signal 1 Mar 2022 Satoshi Tsunakawa will be replaced by Taro Shimada, who joined from Siemens in 2018. The move suggests a sale option might get reconsidered over a controversial breakup plan. The bad governance that has dogged the conglomerate, however, means any optimism should be muted for now.