Why is Kadoya Sesame Mills stock surging today?

Kadoya Sesame Mills shares have experienced a significant surge of +13.7%, reaching a record high of ¥2,751. This upward movement can be attributed to ITG-G Holdings, a firm associated with the Japanese private equity firm Integral, initiating a public tender offer for all the company's outstanding common shares. The tender offer window, which began today and extends until October 30, 2026, has received formal support from Kadoya's board of directors, who recommend shareholders tender their shares to facilitate a private acquisition.

The announced tender offer price of ¥2,514 per share is currently lower than the stock's market price, indicating potential deal arbitrage and market anticipation of possible revisions to the final terms before the offer concludes. In preparation for this corporate restructuring, Kadoya has announced the elimination of its annual dividend for the fiscal year ending March 2027 and the discontinuation of its shareholder benefit program, both actions typical of a company poised to delist from the Tokyo Stock Exchange.

The overall market sentiment, as represented by the Nikkei 225, remains cautiously optimistic, having risen by 0.8%.