|Bid||5.50 x 21500|
|Ask||0.00 x 27000|
|Day's Range||5.67 - 5.71|
|52 Week Range||4.49 - 7.56|
|Beta (5Y Monthly)||1.28|
|PE Ratio (TTM)||5.37|
|Forward Dividend & Yield||0.37 (6.50%)|
|Ex-Dividend Date||Mar 27, 2020|
|1y Target Est||9.26|
(Bloomberg) -- Shares of game maker Nexon Co. soared to a record high in Tokyo after the surprise announcement that it will join Japan’s Nikkei 225 Stock Average, replacing retailer FamilyMart Co.Nexon, founded by South Korean billionaire Kim Jung-ju, closed 17% higher after touching its daily limit of a 20% gain earlier. The stock will be added to Japan’s blue-chip gauge on Oct. 29, Nikkei Inc. said.“It’s very much a surprise, one wouldn’t predict this pick at first,” said Keiichi Ito, chief quants analyst at SMBC Nikko Securities Inc. “If they chose based on liquidity, then there must have been other names to choose from.”Kim owns about 48% of Nexon’s stock through his holding company NXC Corp., according to data compiled by Bloomberg. Shares of the company, known for its Dungeon & Fighter and Maple Story games, have nearly doubled this year, helped by the stay-at-home theme amid the pandemic before the Nikkei nod.Stocks that had been cited by analysts as potential candidates to replace FamilyMart in the Nikkei 225 included Kakaku.com Inc., Zozo Inc., Square Enix Holdings Co., Lawson Inc., Skylark Holdings Co., Suntory Beverage & Food Ltd. and perennial pick Nintendo Co. Shares of Kakaku.com tumbled 7.8% Friday, Zozo slid 7.2%, Square Enix fell 3.9% and Skylark dropped 2.8%. Candidates for replacement often see share moves in the runup to the actual announcement.Passive funds tracking the Nikkei 225 will need to adjust their portfolios by the end of trading on Oct. 28. That means the Thursday evening announcement gave them just four trading sessions to buy the required 60 million shares of Nexon estimated by SMBC Nikko’s Ito, equivalent to 32 days worth of the stock’s average daily trading volume over the previous 25 days.Out and InThe acquisition of FamilyMart by trading house Itochu Corp. was approved at an extraordinary shareholder’s meeting Thursday, and the convenience-store operator will be delisted on Nov. 12.When a Nikkei 225 stock is delisted or removed, gauge operator Nikkei Inc. usually replaces it with a highly liquid name from the same sector. While Nintendo has both the liquidity and market representation, its large share price has often been seen as a drawback for the price-weighted measure.For market watchers keeping track of changes to the Nikkei, it’s been a fairly busy year for announcements. Japan Exchange Group Inc. joined the measure in July, replacing Sony Financial Holdings after Sony Corp. took full control of the unit. In September it was announced that SoftBank Corp. would be added and Nippon Kayaku Co. would be cut.The next potential vacancy may be created if Nippon Telegraph & Telephone Corp.’s $40 billion buyout plan for mobile carrier NTT Docomo Inc. succeeds. Rohm Co. and Murata Manufacturing have been named as potential replacements.(Updates with closing share price changes)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The record $40 billion deal for wireless carrier NTT Docomo Inc. is sparking discussion of whether an even bigger Japanese buyout could be in the works: SoftBank Group Corp.Founder Masayoshi Son has debated for years whether to take his conglomerate private because of a persistent discount between his stock and the perceived value of his assets, particularly Alibaba Group Holding Ltd. shares. The 63-year-old billionaire revived informal talks this year after his shares tumbled and he sold off assets.The Docomo deal signals Japan has plenty of capital for deals on the kind of scale unthinkable in the past. Nippon Telegraph & Telephone Corp. will borrow the entire purchase price to finance the affiliate’s buyout, even though it had 1.09 trillion ($10.3 billion) in cash and equivalents at the end of March.“A successful buyout of Docomo could spur a similar move by SoftBank. There is plenty of liquidity for both,” said Justin Tang, head of Asian research at United First Partners in Singapore. “For lenders, this can be a huge source of revenue. And shareholders can have a catalyst in which to realize the value of their holdings.”Son has been frustrated that investors won’t pay more for his stock considering his company’s holdings. SoftBank posts on its website an estimate that its shareholder value is about 13,000 yen a share, a figure it calculates by adding the value of stakes in Alibaba, SoftBank Corp. and other assets, then subtracting debt. That’s roughly half the roughly 6,500 yen a share SoftBank Group trades at.After his shares plummeted in March, Son announced a record 4.5 trillion yen asset sale plan and a record 2.5 trillion yen buyback program. In addition, he’s cut a deal to sell chip designer Arm Ltd. to Nvidia Corp. for about $40 billion in cash and stock, although regulatory approval is expected to take more than a year.“Given SoftBank’s valuation discount and the availability of cheap financing, there is a good chance of an MBO,” said Tang.Goldman Sachs Group Inc. analysts published a research note after the Docomo buyout, arguing the deal is likely to spark further corporate alignments in the country. The report didn’t specifically mention SoftBank.The Docomo deal does present at least two challenges for SoftBank. NTT is buying out public shareholders in part so it can lower wireless rates more easily, a competitive threat that may hurt SoftBank Corp., Son’s domestic telecom unit. Newly anointed Prime Minister Yoshihide Suga has made lower phone tariffs a key part of his early agenda.In addition, NTT is paying 40% more than Docomo’s share price before the announcement. SoftBank shareholders could ask for a similar premium if Son pursues a buyout, according to Bloomberg Intelligence analyst Anthea Lai.SoftBank Group’s market capitalization is about $128 billion, so that kind of premium would mean valuing the company at $179 billion. That would be by far the largest buyout ever.Between the stake held by Son himself and the treasury shares SoftBank has already bought back, more than 30% of the company’s stock is already controlled by management, according to Bloomberg-compiled data.SMBC Nikko Securities Inc. analyst Satoru Kikuchi wrote earlier this month that a management-led deal to take the company private looked feasible.“The firm seems to be selling off assets rapidly and is considering the sale of its ARM holdings earlier than initially planned,” Kikuchi said in a research note. “Given the scale of its buyback operations, we think delisting via management buyout is a possibility.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of SMBC Nikko Securities Inc. Tokyo, September 29, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of SMBC Nikko Securities Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.