Nippon Life and National Australia in Deal Talk, Seven & I Jump

Hiruki Nakamura
27 Oct, 2015
New York City

Nippon Life nearing a deal to acquire life insurance business of National Australia Bank Ltd. Seven & I Holdings jumped after a U.S. based activist investor takes a stake in the retailer. Shin-Etsu reported domestic silicone capacity expansion plan.

[R]4:30 PM Tokyo – Nippon Life nearing a deal to acquire life insurance business of National Australia Bank Ltd. Seven & I Holdings jumped after a U.S. based activist investor takes a stake in the retailer. Shin-Etsu reported domestic silicone capacity expansion plan.[/R]

Stocks in Tokyo edged lower and investors digested latest batch of earnings.

The Nikkei 225 Stock Average slumped 170.08 or 0.9% to 18,777.04 and the broader Topix index dropped 15.88 to 1,543.11.

The yen strengthened to 120.37 against a dollar.

Stocks in Review

Nippon Life Insurance Company agreed to acquire majority stake of underperforming life insurance business of the Australia-based services provider National Australia Bank Ltd. The news was reported by Bloomberg News.

The transaction is estimated to cover 80% of the life insurance business worth about 220 billion yen or $2.51 billion.

Omron Corporation slipped 0.9% to 4,245 yen after the electronics machinery equipment maker reported net sales in the first-half ending in September jumped 2.2% from a year ago to 413.60 billion yen.

Net income in the period plunged 27.3% to 24.47 billion yen compared to 33.69 billion yen and earnings per share dropped to 112.65 yen from 153.06 yen.

The company forecasted net sales for the year to increase 1.5% to 860 billion yen but net income to plummet 13.9% to 53.50 billion yen.

Separately today, the company had completed its acquisition of the U.S.-based Adept Technology, Inc, the autonomous mobile robot solutions and services provider for all-cash tender offer for US$13 per share or US$194 million.

Seven & I Holdings Co., Ltd jumped 3.2% to 5,548 yen after the Kyodo news said activist investor Daniel Loeb controlled hedge fund Third Point acquired a stake in the company and push for reforms.

Sharp Corporation rose 0.7% to 138 yen after the Nikkei news said electronic products maker’s sales in the first-half ending in September are estimated to decline 4% to 1.27 trillion yen.

The company expects a group net loss of 84 billion yen compared to net profit of 4.7 billion yen in the same period a year ago.

Shin-Etsu Chemical Co Ltd dropped 1.3% to 6,938 yen after the chemicals producer reported net sales in the first-half ending in September soared 7% from a year ago to 645.84 billion yen.

Net income in the period surged 13.4% to 76.63 billion yen compared to 67.59 billion yen and diluted earnings per share rose to 179.91 yen from 158.73 yen.

The company forecasted net sales for the year to increase 1.2% to 1.27 trillion yen and net income to jump 8.9% to 140 billion yen.

The president, Shunzo Mori said the chemical maker plans to invest as much as 20 billion yen domestically to expand its silicones business.

Shin Etsu agreed to invest additional 12 billion yen at the Gunma complex for new production facilities that enable to produce various types of silicone products.

The company also plans to invest 3 billion yen to set up a new manufacturing facility for silicone products that can be used as a marine paint material in at its Naoetsu Plant in Niigata Prefecture.

Tokyo Electron Limited decreased 0.9% to 6,745 yen after the industrial electronic products maker net sales in the first-half ending in September surged 15.9% from a year ago to 340.95 billion yen.

Net income in the period doubled to 41.38 billion yen compared to 20.02 billion yen and diluted earnings per share gained to 237.46 yen from 111.42 yen.

The company lifted net sales forecast for the year to increase 2.3% to 660 billion yen from the earlier estimate to 645 billion yen and net income to rise 9.1% to 72 billion yen from the previous forecast of 66 billion yen.