Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Bank of Kyoto has twice changed/improved its capital governance in the past six months.</li>
<li>Silchester International Investors wants it to do more, asking for a small special dividend at tomorrow's AGM. I don't think it will get it. </li>
<li>The holdco is now a better holdco trade than it was 6mos ago, and trading the range is the right way to look at it. </li>
</ul>


Bank of Kyoto has twice changed/improved its capital governance in the past six months.
Silchester International Investors wants it to do more, asking for a small special dividend at tomorrow's AGM. I don't think it will get it. 
The holdco is now a better holdco trade than it was 6mos ago, and trading the range is the right way to look at it. 


David Blennerhassett

<ul>
<li>Post-Spin, <a href="https://www.smartkarma.com/entities/bhp-group-ltd" target="_blank" data-smartkarma-citation="entities:147:1" rel="noopener">BHP (BHP AU)</a> should look more like RIO. It's not clear it does, but it does move around in a way that allows one to harvest ratio noise. </li>
<li>
<a href="https://www.smartkarma.com/entities/bank-of-kyoto" target="_blank" data-smartkarma-citation="entities:5248:1" rel="noopener">Bank of Kyoto (8369 JP)</a> has been the poster child for "deep value" Japan traders and occasional wannabe activists. It has a huge equity portfolio which dwarfs market cap. </li>
<li>Fourteen years after its acquisition, <a href="https://www.smartkarma.com/entities/incitec-pivot-ltd" target="_blank" data-smartkarma-citation="entities:1127:1" rel="noopener">Incitec Pivot (IPL AU)</a> plans to demerge Dyno Nobel from its fertilizer ops. The split has been a long time coming. </li>
</ul>


Post-Spin, BHP (BHP AU) should look more like RIO. It's not clear it does, but it does move around in a way that allows one to harvest ratio noise. 

Bank of Kyoto (8369 JP) has been the poster child for "deep value" Japan traders and occasional wannabe activists. It has a huge equity portfolio which dwarfs market cap. 
Fourteen years after its acquisition, Incitec Pivot (IPL AU) plans to demerge Dyno Nobel from its fertilizer ops. The split has been a long time coming. 


Last Week in Event SPACE: BHP, Bank of Kyoto, Incitec Pivot, Yancoal, Virtus

<ul>
<li>Bank of Kyoto (8369 JP) has been the poster child for "deep value" Japan traders and occasional wannabe activists. It has a huge equity portfolio which dwarfs market cap. </li>
<li>Every year, twice a year (end of May and early December) Bank of Kyoto (8369 JP) releases a document for a meeting with analysts and press called Information Meeting.</li>
<li>This year's is a little different in that it proposes sales of 10% of its equity portfolio. It's "small" but worth thinking about. </li>
</ul>


Bank of Kyoto (8369 JP) has been the poster child for "deep value" Japan traders and occasional wannabe activists. It has a huge equity portfolio which dwarfs market cap. 
Every year, twice a year (end of May and early December) Bank of Kyoto (8369 JP) releases a document for a meeting with analysts and press called Information Meeting.
This year's is a little different in that it proposes sales of 10% of its equity portfolio. It's "small" but worth thinking about. 


Bank of Kyoto (8369) Surprises With a Cross-Holding Sale Plan (Albeit Small)

<ul>
<li>If Silchester's activism towards <a href="https://www.smartkarma.com/entities/shiga-bank-ltd" target="_blank" data-smartkarma-citation="entities:18665:1" rel="noopener">Shiga (8366 JP)</a> &amp; <a href="https://www.smartkarma.com/entities/chugoku-bank-ltd" target="_blank" data-smartkarma-citation="entities:11177:1" rel="noopener">Chugoku (8382 JP)</a> is going to be fought, it is going to be fought in the Japanese media, not in the AGM convocation. </li>
<li>The idea that the <a href="https://www.smartkarma.com/entities/agl-energy-ltd" target="_blank" data-smartkarma-citation="entities:554:1" rel="noopener">AGL Energy Ltd (AGL AU)</a> de-merger could be thwarted is something which could dampen spirits on the stock near-term</li>
<li>
<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> as a risk arb situation is trading wide. It should trade tighter. </li>
</ul>


If Silchester's activism towards Shiga (8366 JP) &amp; Chugoku (8382 JP) is going to be fought, it is going to be fought in the Japanese media, not in the AGM convocation. 
The idea that the AGL Energy Ltd (AGL AU) de-merger could be thwarted is something which could dampen spirits on the stock near-term

Hitachi Transport System (9086 JP) as a risk arb situation is trading wide. It should trade tighter. 


Last Week in Event SPACE: Hitachi Transport, Shiga Bank, CP Food, AGL, Woodside/BHP, Yamada Denki

<ul>
<li>In early February 2022, Silchester International Investors (according to its website) sent letters to four low-ROE-earning Japanese regional banks proposing a new dividend policy.</li>
<li>The management and boards of each bank rejected the policy proposal though two of the four had upped their proposed dividend or changed policy prior, and two upped it afterwards.</li>
<li>While <a href="https://www.smartkarma.com/entities/bank-of-kyoto" target="_blank" data-smartkarma-citation="entities:5248:1" rel="noopener">Bank of Kyoto (8369 JP)</a> is the biggie, <a href="https://www.smartkarma.com/entities/shiga-bank-ltd" target="_blank" data-smartkarma-citation="entities:18665:1" rel="noopener">Shiga Bank (8366 JP)</a> is another one with significant equity holdings. </li>
</ul>


In early February 2022, Silchester International Investors (according to its website) sent letters to four low-ROE-earning Japanese regional banks proposing a new dividend policy.
The management and boards of each bank rejected the policy proposal though two of the four had upped their proposed dividend or changed policy prior, and two upped it afterwards.
While Bank of Kyoto (8369 JP) is the biggie, Shiga Bank (8366 JP) is another one with significant equity holdings. 


JAPAN ACTIVISM:  Silchester Goes After Shiga Bank

Japan

The Bank of Kyoto, Ltd. is a regional bank in Kyoto.  The Bank provides banking services including deposits, savings, loans, foreign exchange transactions, and securities investments.  The Bank of Kyoto also provides financial services such as letter of credit, leasing, loans, and credit cards.

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Bank of Kyoto (8369 JP)

Bank of Kyoto - Trading the Holdco Range

The Bank of Kyoto (8369 JP) AGM is tomorrow, with a possible special div proposed by Silchester. I doubt it gets it. But BoK has twice improved...

Travis Lundy

Last Week in Event SPACE: BHP, Bank of Kyoto, Incitec Pivot, Yancoal, Virtus

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Bank of Kyoto (8369) Surprises With a Cross-Holding Sale Plan (Albeit Small)

Bk of Kyoto holds an "Information Meeting" twice a year. May's comes two weeks after earnings. This one holds a surprise with a new plan to reduce...

Travis Lundy

Last Week in Event SPACE: Hitachi Transport, Shiga Bank, CP Food, AGL, Woodside/BHP, Yamada Denki

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

JAPAN ACTIVISM: Silchester Goes After Shiga Bank

Silchester Int'l Investors has written letters to four regional banks where it holds large stakes. The goal appears to be to urge public debate of...

Travis Lundy

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