Japan’s most expensive bank hides in a 7-Eleven
14/05/2021 03:45
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Pete Sweeney
HONG KONG, May 14(Reuters Breakingviews) - ValueAct’s tilt
at Seven & i involves deciding what to do with its 40% stake in
the only Japanese lender trading over book value. Seven Bank
mostly runs ATMs, a model threatened by digitisation. Yet it
produces double-digit returns on equity, and a way to cash in on
immigration.
Full view will be published shortly.
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CONTEXT NEWS
- ValueAct Capital said on May 13 that it had bought some 39
million shares in Japanese convenience store operator Seven & i.
It followed an exclusive Reuters report that the activist
investor had taken a 4.4% stake, lobbying for the 7-Eleven owner
to consider changes including a breakup.
- Seven Bank, a financial affiliate of the Seven & i group
that runs ATMs in 7-Eleven convenience stores, on May 7 reported
net income attributable to owners of the parent fell 0.8% to 26
billion yen for the fiscal year ending March 31.
- Major Japanese banks with investment arms, including
Nomura and Mitsubishi UFJ, have reported big losses this year
related to their relationship with U.S. investment fund
Archegos. Nomura will book around $2.9 billion in losses, it
said.
- For previous columns by the author, Reuters customers can
click on SWEENEY/
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Seven Bank earnings presentation https://www.sevenbank.co.jp/corp/news/2021/pdf/20210507_E2_PR.pdfturbot
BREAKINGVIEWS- ValueAct takes a tastier second bite of 7-Eleven
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| Editing by Antony Currie and Sharon Lam)
((pete.sweeney@thomsonreuters.com; Reuters Messaging:
pete.sweeney.thomsonreuters.com@reuters.net))