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Sun is a listed Japanese company with a market cap of ¥80 billion ($530 million). It operates through the following business divisions:

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• Mobile Data Solution: Sun holds a 47% ownership stake in Cellebrite (NASDAQ:CLBT US), which is a leading Israeli SaaS (Software as a Service) digital intelligence platform. Cellebrite is widely used by almost all major law enforcement agencies and is known for its capability to extract and analyze data from mobile phones. Its services cater to law enforcement, intelligence, military, and corporate applications. Cellebrite's offerings are characterized by strong customer loyalty and present significant cross-selling opportunities.

• Entertainment Business: The company is involved in the development, manufacturing, and sale of Pachinko game machines. Pachinko is a popular Japanese gambling game that is often likened to a blend of pinball and slot machines. It serves as a recreational arcade game and has been an integral part of Japanese culture for many years.

• IT: Sun is also engaged in the development, manufacturing, and sale of communication solutions for vending machines, facilitating the transition from 3G to 4G technology.

 

Cellebrite was listed on NASDAQ in August 2021 as part of the SPAC wave at $10 per share, with a market valuation of $2 billion. As part of the listing, Sun sold some of its holdings.

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In a press release dated November 15, 2021 (when Sun's share price was ¥3,170), Sun made the following statement (emphasis added):

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“In light of ongoing restructuring at Sun Corporation, we wish to give the following update: Sun Corporation is focused on utilizing its assets and capabilities to grow corporate and shareholder value. Sun Corporation is currently exploring a number of avenues including further restructuring, investment for organic growth, M&A and shareholder returns. Sun is working with IR consultants to improve its disclosures, website and update its medium-term plan. We appreciate your patience and look forward to sharing these changes with you. The Board of Directors of Sun Corporation recognizes that the company's shares are traded at a substantial discount to their fair value. The Company is considering all possible measures to improve this situation."

 

Three years later, the discount is only larger. The Market value of Cellebrite’s shares owned by Sun is approx. ¥169 Billion while the the market capitalization of Sun is only  ¥80 Billion.

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