Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In the mid-late teens, four refinery groups merged to create two refinery groups - JX and Tonen General became JXTG under <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> and Idemitsu took over ShowaShell.</li>
<li>When Idemitsu got ShowaShell, it got 50+% in <a href="https://www.smartkarma.com/entities/toa-oil-co-ltd" target="_blank" data-smartkarma-citation="entities:11021:1" rel="noopener">Toa Oil Co Ltd (5008 JP)</a>, 6.58% of <a href="https://www.smartkarma.com/entities/fuji-oil-co-ltd" target="_blank" data-smartkarma-citation="entities:12970:1" rel="noopener">Fuji Oil Co Ltd (5017 JP)</a>. In 2020, they tried to buy in Toa.</li>
<li>That was delayed by an activist. Today, Idemitsu announced they had gone to 23% in Fuji Oil. That stake will go up before it goes down.</li>
</ul>


In the mid-late teens, four refinery groups merged to create two refinery groups - JX and Tonen General became JXTG under ENEOS Holdings (5020 JP) and Idemitsu took over ShowaShell.
When Idemitsu got ShowaShell, it got 50+% in Toa Oil Co Ltd (5008 JP), 6.58% of Fuji Oil Co Ltd (5017 JP). In 2020, they tried to buy in Toa.
That was delayed by an activist. Today, Idemitsu announced they had gone to 23% in Fuji Oil. That stake will go up before it goes down.


Idemitsu (5019): First SumiChem's, Now JERA's Stake in Fuji Oil (5017) To Go to 22%. It's Coming...

<ul>
<li>Yesterday after the close, well-known Japanese activist Murakami-san's preferred entity City Index Eleventh filed a Large Shareholder Report. </li>
<li>The blast across Bloomberg was "<strong>*AOZORA 5.4% STAKE REPORTED BY CITY INDEX ELEVENTH.</strong>" Sounds exciting after the shares dropped 34% in two days earlier this month after reporting big writedowns. </li>
<li>But there has to be a question here. Why? And Why this way? And what kind of activism would be possible? </li>
</ul>


Yesterday after the close, well-known Japanese activist Murakami-san's preferred entity City Index Eleventh filed a Large Shareholder Report. 
The blast across Bloomberg was "*AOZORA 5.4% STAKE REPORTED BY CITY INDEX ELEVENTH." Sounds exciting after the shares dropped 34% in two days earlier this month after reporting big writedowns. 
But there has to be a question here. Why? And Why this way? And what kind of activism would be possible? 


JAPAN ACTIVISM:  Is Murakami-San Going To Do A PacMetals Rug Pull on Aozora? Or Is This For Real?

<ul>
<li>A couple of weeks ago I wrote <a href="https://www.smartkarma.com/insights/japan-activism-murakami-san-goes-substantial-on-pacific-metals-5541-again" target="_blank" rel="noopener">here</a> about noted activist Murakami-san and his new 5+% position in <a href="https://www.smartkarma.com/entities/pacific-metals-co-ltd" target="_blank" data-smartkarma-citation="entities:3439:1" rel="noopener">Pacific Metals (5541 JP)</a>. I warned it might be a rug pull. </li>
<li>It turns out, from subsequent filings, that it may have been a rug pull. This isn't the first time. It isn't even the first time on this stock. </li>
<li>That said, there are goings on here, and it pays to watch them. </li>
</ul>


A couple of weeks ago I wrote here about noted activist Murakami-san and his new 5+% position in Pacific Metals (5541 JP). I warned it might be a rug pull. 
It turns out, from subsequent filings, that it may have been a rug pull. This isn't the first time. It isn't even the first time on this stock. 
That said, there are goings on here, and it pays to watch them. 


JAPAN ACTIVISM:  Murakami-San Does a Rug-Pull on Pac Metals (5541).... Again

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>The <a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a> Board has opposed YFO’s potential tender offer price of JPY1,255 per share but has kept the door open for an improved offer. </li>
<li>YFO is running out of options as a YFO candidate-heavy special committee opposed its proposal, and the share price is trading through terms. </li>
<li>YFO has three options: a hostile offer at an unchanged price, an improved price, or exit its position. Each option has issues suggesting a lack of short-term share price support.  </li>
</ul>


The Toyo Construction (1890 JP) Board has opposed YFO’s potential tender offer price of JPY1,255 per share but has kept the door open for an improved offer. 
YFO is running out of options as a YFO candidate-heavy special committee opposed its proposal, and the share price is trading through terms. 
YFO has three options: a hostile offer at an unchanged price, an improved price, or exit its position. Each option has issues suggesting a lack of short-term share price support.  


Toyo Construction (1890 JP): Déjà Vu as YFO’s Proposal Rejected

<ul>
<li>The question of how Murakami-san would get out of his stake in <a href="https://www.smartkarma.com/entities/cosmo-energy-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:26565:1" rel="noopener">Cosmo Energy Holdings (5021 JP)</a> was always a biggie. He likes to sell stock in tender offer buybacks.</li>
<li>Cosmo wasn't going to do that for him. They promised dividends and a high payout ratio, but that left the question was how he was going to get out. </li>
<li>A semi-obvious solution was to find a corporate partner to buy his stake and today, <a href="https://www.smartkarma.com/entities/iwatani-corp" target="_blank" data-smartkarma-citation="entities:15459:1" rel="noopener">Iwatani Corp (8088 JP)</a> announced that it had bought 19.86% of Murakami-san's 20.01% holding.</li>
</ul>


The question of how Murakami-san would get out of his stake in Cosmo Energy Holdings (5021 JP) was always a biggie. He likes to sell stock in tender offer buybacks.
Cosmo wasn't going to do that for him. They promised dividends and a high payout ratio, but that left the question was how he was going to get out. 
A semi-obvious solution was to find a corporate partner to buy his stake and today, Iwatani Corp (8088 JP) announced that it had bought 19.86% of Murakami-san's 20.01% holding.


Mischief Managed! Iwatani Corp (8088) Buys Out Murakami-San's Cosmo Energy Stake

Japan

Cosmo Energy Holdings Co., Ltd. operates as a holding company.  The Company, through its subsidiaries, imports, refines, and sells crude oil as well engages in the independent development of oil resources.

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Cosmo Energy Holdings (5021 JP)

Idemitsu (5019): First SumiChem's, Now JERA's Stake in Fuji Oil (5017) To Go to 22%. It's Coming...

Idemitsu has bought two corporate stakes in Fuji Oil to go from 6+% to nearly 22%. This is not a big surprise. There's history. Medium-long-term, a...

Travis Lundy

JAPAN ACTIVISM: Is Murakami-San Going To Do A PacMetals Rug Pull on Aozora? Or Is This For Real?

Murakami-san's daughter bought 5.4% of Aozora Bank. It could be activism or it could be another pump'n'dump like Pacific Metals. It is tough to...

Travis Lundy

JAPAN ACTIVISM: Murakami-San Does a Rug-Pull on Pac Metals (5541).... Again

Pacific Metals was a Murakami target for the second time in just over two years. And for the second time in just over two years, it was a rug pull....

Travis Lundy

Toyo Construction (1890 JP): Déjà Vu as YFO’s Proposal Rejected

YFO has withdrawn its JPY1,255 offer. YFO dispute centres on the feasibility of the medium-term management plan as “there have already been...

Arun George

Mischief Managed! Iwatani Corp (8088) Buys Out Murakami-San's Cosmo Energy Stake

Murakami-san is OUT of Cosmo Energy. Petro/Industrial Gases co Iwatani Corp has bought a 19.9% stake. This may be without warning to Cosmo. It's...

Travis Lundy

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