Serial article regarding M&A on NNA (vol.105)

Continuing the previous article, we take two M&A deals by Japanese companies in 2022.

1. Investment in a digital agency by Hakuhodo Inc.

Hakuhodo Inc. announced on 2nd August 2022, they acquired 80% shares of Malaysian independent digital agency, Kingdom Digital Solutions Sdn. Bhd. (Kingdom), and made it a consolidated subsidiary.

Established in 1895, Hakuhodo is one of the largest marketing and advertising agencies in Japan with sales of approximately JPY 900 billion, and market capitalization of approximately JPY 500 billion. They have been increasing their sales in digital field in recent years. They established Malaysian company in 1973 as their first overseas office, followed by new companies in 2003 and 2014 respectively to expand their business in Malaysia.

Kingdom, established in 2007, provides a wide variety of services, such as social media and content marketing and digital creative automation to clients in ASEAN countries, mainly in Malaysia. They are a multi-award-winning company in digital industry, one of the biggest awards was from the largest advertising journal in Asia. They have more than 100 employees, and their clients include Japanese cosmetics company, Kose, and over 60 brands, including Grab, which is a leading taxi app, Hong Leong Bank, Fedex etc.

According to the press release of Kingdom on 2nd August 2022, with Hakuhodo’s acquisition, they will be able to broaden and deepen their services by utilizing their infrastructure, creativity, and insights. We expect Hakuhodo’s further business expansion in Malaysia. [1]

2. Share transfer to manufacturer and distributor of stretch film by Taisei Lamick Co., Ltd.

Taisei Lamick Co., Ltd. released on 2nd September 2022, they transferred 80.2% of share of their subsidiary, Taisei Lamick Malaysia to Scientex Packaging Film, which manufacture and distribute stretch film in Malaysia.

TAISEI LAMICK, established in 1966, they are a leading company which develops, manufactures and distributes high-quality film for liquid packaging with top market shares in Japan, and high-speed liquid auto fillers. In Malaysia, they have a factory of their subsidiary, Taisei Lamick Malaysia, in Selangor, and they had manufactured and distributed light packaging printed and laminated for food, beverages, daily necessities. After this share transfer, the manufacturing process will be handled by Scientex Packaging Film and distribution will be handled by their wholly owned subsidiary, Taisei Lamick Asia which they newly established.

Established in 1993, Scientex Packaging Film is one of a core company of Scientex Group and they are a manufacturer of stretch films. Scientex Group has two main businesses, one is manufacturing of films, and another one is developing relatively low-cost housing called “Affordable House”. They are the largest film manufacturer in Malaysia, and their market capitalization reaches approximately JPY 160 billion.

According to the press release of Scientex on 2nd September 2022, this share transfer enhances their fast-growing film business more, and they aim to provide products with competitive costs and expand their market shares in F&B fields and medical and health care fields. [2]



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