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   Strategies & Market TrendsSpeculating in Takeover Targets


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To: richardred who wrote (5233)7/20/2019 9:59:08 PM
From: richardred
   of 6086
 
Tokio Marine, which spent $17 billion on acquisitions, says there's more to come Bloomberg


    Jun 25, 2019

Tokio Marine Holdings Inc. is seeking acquisition opportunities in Asian emerging markets and elsewhere as it seeks to double profits from those regions, according to the new chief of Japan’s largest property-and-casualty insurer.

“We have group companies in Southeast Asia but they’re small,” Satoru Komiya, who became president Monday, said in an interview. “If we have a chance to make a further leap in the Philippines, Indonesia and Malaysia, we’d like to expand our business.”




Komiya’s quest to deepen the company’s global reach comes after it spent more than $17 billion (¥1.82 trillion) in the past 11 years on a string of large acquisitions overseas, Bloomberg data show. Tokio Marine and its Japanese competitors are looking abroad to diversify geographic risk and make up for diminishing prospects at home as the population shrinks.

The company is also looking for opportunities in emerging markets beyond Asia, such as Central and South America and the Middle East, said Komiya, 58, who was promoted from senior managing director in charge of overseas businesses. While it isn’t working on any specific deals now, the insurer has compiled a list of potential targets, he added.

“Valuations are high because of excess money globally,” he said. “But if there’s a good chance, we’d like to pursue it actively.”

Overseas insurance businesses now account for almost half of Tokio Marine’s profits, but these mainly U.S.-focused deals — including the purchase of Houston-based HCC Insurance Holdings Inc. for $7.5 billion in 2015 — have left Asia and other emerging markets as a minor contributor. The company has said it wants to increase the proportion of these regions’ profits to 20 percent of its overseas businesses, up from about 10 percent now.

There are early signs of Tokio Marine’s pivot to Asia deals. Last year, the company agreed to buy the Thai and Indonesian businesses of Sydney-based Insurance Australia Group Ltd. for about 525 million Australian dollars (¥56.2 billion).

Komiya said he’s paying more immediate attention to building the firm’s nonlife insurance business in Asia outside Japan. “Life insurance business takes time” to generate substantial profits, he said.

He is leaving open the possibility of large-scale acquisitions in the U.S. and Europe, where the company bought specialty insurers providing coverage for particular industries and liabilities, as opposed to general auto and home insurance. Tokio Marine HCC and other overseas units will continue to do smaller “bolt-on” acquisitions, the CEO added.

One specific challenge that Komiya is inheriting in his new role as president is a sexual harassment complaint at its U.K. unit. Two executives at Tokio Marine Kiln Group Ltd., a managing agent at Lloyd’s of London, have resigned following reports of the allegations.

Komiya said the unit has set up a third-party committee to investigate the matter and the holding company is being briefed. “We are monitoring the situation to make sure TMK will take appropriate measures,” he said in an emailed response to questions because the story broke after the interview.

japantimes.co.jp

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To: richardred who wrote (5305)7/20/2019 11:04:15 PM
From: richardred
1 Recommendation   of 6086
 
Sprouts featured on World’s Most Admired Companies list.

bizjournals.com


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From: E_K_S7/22/2019 9:13:47 AM
   of 6086
 
Peak Resorts +112% after coming off trading halt
Jul. 22, 2019 7:53 AM ET|About: Peak Resorts, Inc. (SKIS)|By: Clark Schultz, SA News Editor

Peak Resorts (NASDAQ: SKIS) opens for trading again following the resort operator's acquisition by Vail Resorts.

Shares of SKIS are up 112.35% in premarket action to $10.82 vs. the $11.00 deal price.

The transaction will still need to land regulatory clearance and shareholder approval before it closes.

-----------------------------------

Had this one on watch list but no position.

EKS

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To: E_K_S who wrote (5391)7/22/2019 10:48:58 AM
From: richardred
   of 6086
 
A nice premium for cash. I enjoyed skiing locally and in Vermont. I now have a nice pair of snow shoes for walking in Western NY winters.

P.S. Now that Skiing is in the limelight today. I'm wondering how receptive IPO AMF BOWLING INC (PIN) will be? The company has been through the ringer. I've taken note the PBA is back on TV again. I used to enjoy Chris Schenkel & Nelson Burton Jr.. I'm a Former AMF holder. Harvey I guy I used to work with at American Can..He was a Big Harley dealer in our area. His daughter runs it now. He was glad to hear AMF sold it off when I told him at work.



nasdaq.com

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To: E_K_S who wrote (5378)7/22/2019 11:10:36 AM
From: richardred
   of 6086
 
RE-BGS The way the stock is acting. I'm getting ready for the reality of a dividend cut. IMO just seems unsustainable moving forward. The stock might take an initial hit, but could stabilize afterward.

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From: E_K_S7/22/2019 2:47:34 PM
   of 6086
 
US Foods buys Arizona food service group for $1.8 billion
The deal, announced Monday, will bring Services Group of America’s food group into the US Foods Holding Corp. fold, adding five companies, $3.2 billion in annual sales and about 3,400 employees, with an expanded distribution footprint across the West and Midwest.

------------------------------------------------

More consolidation in the group. I noticed that SYSCO's merger w/ U.S. Food ($8Bln) was cancelled after FTC concern (anti-trust) .

4,804 viewsJun 29, 2015, 12:14pm

Sysco Cancels $8.2 Billion US Foods Takeover In Big Antitrust Win For FTC
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I am wondering where UNFI fits in as a potential acquirer (no need to add to debt) or as the acquired.

UNFI's market cap still quite small when you compare to SYSCO & USFD. USFD has a $7.8Bln market Cap vs SYY of $36.5Bln vs UNFI $0.45 Bln

EKS

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To: richardred who wrote (5393)7/22/2019 3:57:11 PM
From: E_K_S
   of 6086
 
Looks like BGS could cut dividend by 25% or more. Going back at $0.21/share stock was at the same price. Would make sense if they used the savings to pay down debt. Little growth prospects in earnings until they have other high margin products.

Been watching the Food Service sector; SYY and USFD. I expect more consolidation.

EKS

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To: richardred who wrote (5288)7/23/2019 9:40:21 AM
From: richardred
   of 6086
 
RE-CTG speculation - Just a guess, but based as IBM being their largest customer and the PR statement. (Selected as one of two tier-one IT Staffing vendors for a new division at existing Fortune 500 client) RE-IBM completed the RED HAT acquisition. I'm thinking they landed some staffing business of Red Hat?

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To: richardred who wrote (5390)7/23/2019 10:09:01 AM
From: richardred
   of 6086
 
Picked up some Sprouts today on the downgrade and new low.

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To: richardred who wrote (5309)7/23/2019 10:24:51 AM
From: richardred
   of 6086
 
RE-AXTA- Axalta I sold out at a slight profit. I could be wrong, but it's seemly to obvious a deal will be taking place soon. If a competitor really wanted a deal bad enough. IMO They would have bid before SA were put in place. It's been a acquisition buyers market now. Many recent deals have been done below a target company's two year highs.

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