Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In late February, a specialty media outlet noted <a href="https://www.smartkarma.com/entities/alps-logistics-co-ltd" target="_blank" data-smartkarma-citation="entities:3935:1" rel="noopener">Alps Logistics (9055 JP)</a> was up for sale. I missed that. Yesterday pre-close, a headline crossed the wires. A deal was imminent.</li>
<li>Nikkei overnight said "¥150bn+ market cap". I thought KKR might slightly overpay the <a href="https://www.smartkarma.com/entities/hitachi-transport-system-ltd" target="_blank" data-smartkarma-citation="entities:2395:1" rel="noopener">Hitachi Transport System (9086 JP)</a> multiple paid. That meant +13% today was full-ish. I was wrong.</li>
<li>KKR is paying ¥5,774 to minorities, and about ¥4,084-ish to the parent, who is reinvesting at ¥5,774. This is a total knock-out price paid. HUGE MINORITY WIN.</li>
</ul>


In late February, a specialty media outlet noted Alps Logistics (9055 JP) was up for sale. I missed that. Yesterday pre-close, a headline crossed the wires. A deal was imminent.
Nikkei overnight said "¥150bn+ market cap". I thought KKR might slightly overpay the Hitachi Transport System (9086 JP) multiple paid. That meant +13% today was full-ish. I was wrong.
KKR is paying ¥5,774 to minorities, and about ¥4,084-ish to the parent, who is reinvesting at ¥5,774. This is a total knock-out price paid. HUGE MINORITY WIN.


Logisteed/KKR Bid BIGLY for Alps Logistics (9055). A Gobsmacking Price/Multiple

<ul>
<li>There was a news article I missed in late February saying <a href="https://www.smartkarma.com/entities/alps-alpine-co-ltd" target="_blank" data-smartkarma-citation="entities:12001:1" rel="noopener">Alps Alpine (6770 JP)</a>, parent of <a href="https://www.smartkarma.com/entities/alps-logistics-co-ltd" target="_blank" data-smartkarma-citation="entities:3935:1" rel="noopener">Alps Logistics (9055 JP)</a> was in the process of selling the logistics unit.</li>
<li>A deal made sense for a strategic given the upcoming "2024 Problem". Pre-close, headlines blared, the stock popped 12%, now we're at double the end-February price.</li>
<li>Late in the evening,Alps Logistics said it had received a bid from Logisteed but nothing had been decided. This morning we have a few more details, but nothing concrete</li>
</ul>


There was a news article I missed in late February saying Alps Alpine (6770 JP), parent of Alps Logistics (9055 JP) was in the process of selling the logistics unit.
A deal made sense for a strategic given the upcoming "2024 Problem". Pre-close, headlines blared, the stock popped 12%, now we're at double the end-February price.
Late in the evening,Alps Logistics said it had received a bid from Logisteed but nothing had been decided. This morning we have a few more details, but nothing concrete


KKR Deal for Alps Logistics (9055) Appears Imminent

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

During the month of February 2021, one of the most anticipated TOPIX Inclusion candidates, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> completed its TOPIX Inclusion Event. We also saw four new names announce their TSE1 moves during this month, among which was <a href="https://www.smartkarma.com/entities/faithnetwork-co-ltd" target="_blank" data-smartkarma-citation="entities:29132:1" rel="noopener">FaithNetwork Co Ltd (3489 JP)</a> the third stock out of the four pre-event bets highlighted in <a href="https://www.smartkarma.com/insights/topix-inclusion-trade-summary-sep-2020" target="_blank" data-smartkarma-citation="insights:43700" rel="noopener">TOPIX Inclusion Trade Summary: Sep 2020</a>. During this month, we also introduced new pre-event picks to be added to our list in <a href="https://www.smartkarma.com/insights/topix-inclusions-who-is-ready-3-0" target="_blank" data-smartkarma-citation="insights:48306" rel="noopener">TOPIX Inclusions: Who Is READY? 3.0</a>. In this insight, I have provided performance updates for 4 "Live" event stocks which are expected to have Inclusion Events at the end of March/April 2021 and 17 "Post" event stocks that completed their Inclusion Events at the end of January 2021 and February 2021.

During the month of February 2021, one of the most anticipated TOPIX Inclusion candidates, Toshiba Corp (6502 JP) completed its TOPIX Inclusion Event. We also saw four new names announce their TSE1 moves during this month, among which was FaithNetwork Co Ltd (3489 JP) the third stock out of the four pre-event bets highlighted in TOPIX Inclusion Trade Summary: Sep 2020. During this month, we also introduced new pre-event picks to be added to our list in TOPIX Inclusions: Who Is READY? 3.0. In this insight, I have provided performance updates for 4 "Live" event stocks which are expected to have Inclusion Events at the end of March/April 2021 and 17 "Post" event stocks that completed their Inclusion Events at the end of January 2021 and February 2021. 

In the month of January 2021, one of the most anticipated TOPIX Inclusion candidates, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> announced its move to TSE1 triggering what could potentially be one of the largest TOPIX Inclusion events in recent memory. The stock could see its TOPIX Inclusion take place at the end of February, along with <a href="https://www.smartkarma.com/entities/sansan-inc" target="_blank" data-smartkarma-citation="entities:28112:1" rel="noopener">Sansan Inc (4443 JP)</a> - another larger-than-usual candidate - and two other super-high-impact names <a href="https://www.smartkarma.com/entities/bull-dog-sauce-co-ltd" target="_blank" data-smartkarma-citation="entities:16235:1" rel="noopener">Bull Dog Sauce (2804 JP)</a> and <a href="https://www.smartkarma.com/entities/alps-logistics-co-ltd" target="_blank" data-smartkarma-citation="entities:3935:1" rel="noopener">Alps Logistics (9055 JP)</a>. There is plenty to look forward to. In this insight, I have provided performance updates for 6 "Live" event stocks (including the names mentioned above) which are expected to have Inclusion Events at the end of February 2021 and 14 "Post" event stocks that completed their Inclusion Events at the end of December 2020 and January 2021 (on 28 January 2021).Furthermore, I have also highlighted some interesting Pre-event situations involving stocks that are likely to become TSE1-promotion candidates in the near future.

In the month of January 2021, one of the most anticipated TOPIX Inclusion candidates, Toshiba Corp (6502 JP) announced its move to TSE1 triggering what could potentially be one of the largest TOPIX Inclusion events in recent memory. The stock could see its TOPIX Inclusion take place at the end of February, along with Sansan Inc (4443 JP) - another larger-than-usual candidate - and two other super-high-impact names Bull Dog Sauce (2804 JP) and Alps Logistics (9055 JP). There is plenty to look forward to. In this insight, I have provided performance updates for 6 "Live" event stocks (including the names mentioned above) which are expected to have Inclusion Events at the end of February 2021 and 14 "Post" event stocks that completed their Inclusion Events at the end of December 2020 and January 2021 (on 28 January 2021).Furthermore, I have also highlighted some interesting Pre-event situations involving stocks that are likely to become TSE1-promotion candidates in the near future. 

<a href="https://www.smartkarma.com/entities/alps-logistics-co-ltd" target="_blank" data-smartkarma-citation="entities:3935:1" rel="noopener">Alps Logistics (9055 JP)</a> was for many years the small sad portion of the Alps/Alpine/AlpsLogistics corporate capital structure. There were times when one could play the parent vs the sub, or vs the subs, but it was never very worthwhile. When Alps took over Alpine, it looked perhaps like it would be a situation where the rest of the capital ownership would be rationalized. Unfortunately not. The fact that <a href="https://www.smartkarma.com/entities/alps-alpine-co-ltd" target="_blank" data-smartkarma-citation="entities:12001:1" rel="noopener">Alps (6770 JP)</a> and <a href="https://www.smartkarma.com/entities/alpine-electronics-inc" target="_blank" data-smartkarma-citation="entities:2704:1" rel="noopener">Alpine Electronics (6816 JP)</a> together engaged in awful governance for shareholders - with Alpine effectively gaslighting its own shareholders about the necessity of holding cash as a non-financial asset, and Alps going along with it despite its obligations to minority shareholders of its subsidiary but then later deciding that post-merger it was going to spend Alpine's cash for them - showing everyone Alpine did not need it - hopes for a good governance solution to the undervaluation of Alps Logistics were certainly diminished.<h2>The NEW News</h2>Today, the TSE announced that Alps Logistics would move to the TSE's First Section. It meets all the new TSE1 Listing Criteria which went into effect November 1st, but probably applied under the old rules. In any case, this is big news. Under the Quiddity TOPIX Inclusion Framework, Alps Logistics is SUPER GREEN.<section><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/182/465/original/image?1610624126" class="editor-image img-responsive" data-smartkarma-image-id="182465"></figure></section>That's good. However, someone appears to have figured this news out three days ago. Since Tuesday AM, the stock is up 32%. And as always after that kind of introduction, there is more below the fold.

Alps Logistics (9055 JP) was for many years the small sad portion of the Alps/Alpine/AlpsLogistics corporate capital structure. There were times when one could play the parent vs the sub, or vs the subs, but it was never very worthwhile. When Alps took over Alpine, it looked perhaps like it would be a situation where the rest of the capital ownership would be rationalized. Unfortunately not. The fact that Alps (6770 JP) and Alpine Electronics (6816 JP) together engaged in awful governance for shareholders - with Alpine effectively gaslighting its own shareholders about the necessity of holding cash as a non-financial asset, and Alps going along with it despite its obligations to minority shareholders of its subsidiary but then later deciding that post-merger it was going to spend Alpine's cash for them - showing everyone Alpine did not need it - hopes for a good governance solution to the undervaluation of Alps Logistics were certainly diminished.The NEW NewsToday, the TSE announced that Alps Logistics would move to the TSE's First Section. It meets all the new TSE1 Listing Criteria which went into effect November 1st, but probably applied under the old rules. In any case, this is big news. Under the Quiddity TOPIX Inclusion Framework, Alps Logistics is SUPER GREEN.That's good. However, someone appears to have figured this news out three days ago. Since Tuesday AM, the stock is up 32%. And as always after that kind of introduction, there is more below the fold.

Japan

ALPS LOGISTICS CO., LTD., a subsidiary of Alps Electric Co., Ltd., is a trucking and courier transportation company that works closely with Alps Electric. The Company also provides warehousing and storage services,  Alps Logistics distributes and sells various personal care goods and packaging materials as well.

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Alps Logistics (9055 JP)

Logisteed/KKR Bid BIGLY for Alps Logistics (9055). A Gobsmacking Price/Multiple

KKR/Logisteed has bid a very high price to buy out Alps Logistics from Alps Alpine and minorities. Shareholder structure and a 195% premium to...

Travis Lundy

KKR Deal for Alps Logistics (9055) Appears Imminent

KKR appears near a deal to buy Alps Logistics - Alps Alpine's distribution company. The deal was rumoured end-Feb and the stock has doubled since....

Travis Lundy

TOPIX Inclusion Trade Summary: Feb 2021

TOPIX Inclusion summary for Feb 2021 including performance of Feb inclusions, and March-April inclusions from announcement. Change to recommended...

Janaghan Jeyakumar, CFA

TOPIX Inclusion Trade Summary: Jan 2021

TOPIX Inclusion Monthly Summary for December inclusions and how they did in January (badly), how January inclusions did vs TOPIX (on average well)...

Janaghan Jeyakumar, CFA

TOPIX Inclusion: Alps Logistics (9055)

Alps Logistics is up 32% in three days on no news, but today's news is that it moves to TSE1 in a week, triggering a TOPIX inclusion at end-Feb....

Travis Lundy

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