NTT DoCoMo and GCA, which I talk about before on this blog, are subject to a takeover bid (TOB).
So today I would like to summarize how to deal with such a case.
A takeover bid (TOB) is a type of corporate action that purchases shares outside an exchange by presenting the period, number of shares, and price in advance to acquire a company or make it a subsidiary.
So what should we do if the shares we hold become subject to the target of a takeover bid?
To make it short, I believe it's likely to be safe to sell in the market as usual in good time.
Generally, the stock price of the company subject to the TOB will be high.
In the case of GCA this time, it was @ 718 when I talk about it in July 2019, then the purchase price this time @ 1,380 is the highest since then, and no one should have lost it.
Some people weren't happy with the offered price, but I think it was reasonably profitable if it included the received dividends so far. （I have already sold it at @ 1,379）
The tender offer by U.S. investment bank Houlihan Lokey is not a hostile takeover, so that is likely to close, in which case GCA will be delisted, and the procedure will be cumbersome if left as it is.
I think that such cases will continue to occur frequently in the future, but I hope that everybody will understand this as proof that Japanese stocks are being neglected at bargain prices.