New Street Research - KDDI Corporation (9433) KDDI (Buy, TP: ¥6,600, +40%) KDDI planning a tender offer to take Lawson private

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New Street Research

Chris Hoare

EUR 9270.00 For Business Accounts Only

KDDI (Buy, TP: ¥6,600, +40%) KDDI planning a tender offer to take Lawson private

KDDI plans to launch a ¥500bn (USD 3.37bn) tender offer for Lawson, Japan's third largest convenience franchise. If successful, the move will see KDDI own 50% of Lawson, up from 2.1% today, with the other remaining half owned by Mitsubishi Corporation. On our estimates, the deal is expected to be 3.4% EPS accretive on an annual basis.

06/02/2024 1 EN

Underlying

KDDI Corporation

KDDI is a telecommunications company. Along with its affiliates, Co. operates in four principal business segments: personal, value, business, and global. Co. is engaged in the sale of mobile handset; and the provision of mobile telecommunication services under "au" brand name, Internet contents, settlement service, and electronic money service for individual customers. Co. offers information and communication technology ("ICT") solution services and data center services for domestic corporate customers, overseas companies and individual customers. Co. is also involved in the call center business, the research and technological development, and the telecommunication facilities maintenance.

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JP3496400007 Japan

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Analysts

Chris Hoare

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KDDI (Buy, TP: ¥6,600, +40%) KDDI planning a tender offer to take Lawson private

KDDI (Buy, TP: ¥6,600, +53%) Q4 23 Quick Take: Better mobile trend and a decent sized buyback; FY24 guidance slightly soft

Asia Telco Tour Feedback, Improving growth, ROCE and shareholder remuneration

Japanese Telcos Takeaways from Meetings with the Japanese Telcos + Rakuten in Tokyo. Incumbents still in good shape.

Further thoughts on a potential USM acquisition

NSR Policy Quick Hit: ACP Amendment to FAA Fails to Launch, but a New Path Emerges

NSR Policy: How will Government Review a TMUS/VZ Purchase of US Cellular?

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