Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Ping An Insurance bought into a small Tokyo-based condo developer in 2017 at ¥255/share. In 2020, it reinvested on the dip with SBI at ¥155/share.</li>
<li>Ping An and SBI started with zero shares. By 2020 they had 80+% of shares. Now they are selling out to <a href="https://www.smartkarma.com/entities/daito-trust-construct-co-ltd" target="_blank" data-smartkarma-citation="entities:10503:1" rel="noopener">Daito Trust Construct (1878 JP)</a>. </li>
<li>This is a done deal at a slight premium to book value. Daito Trust buys Real Estate Available for Sale and assumes debt. That's it. Easy peasy done deal. </li>
</ul>


Ping An Insurance bought into a small Tokyo-based condo developer in 2017 at ¥255/share. In 2020, it reinvested on the dip with SBI at ¥155/share.
Ping An and SBI started with zero shares. By 2020 they had 80+% of shares. Now they are selling out to Daito Trust Construct (1878 JP). 
This is a done deal at a slight premium to book value. Daito Trust buys Real Estate Available for Sale and assumes debt. That's it. Easy peasy done deal. 


Daito Trust Buys Out Listed Private Co Ascot (3264 JP) - Small Done Deal at ¥260

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>
<a href="https://www.smartkarma.com/entities/ascot-corp" target="_blank" data-smartkarma-citation="entities:9576:1" rel="noopener">Ascot Corp (3264 JP)</a> announced a tender offer from <a href="https://www.smartkarma.com/entities/daito-trust-construct-co-ltd" target="_blank" data-smartkarma-citation="entities:10503:1" rel="noopener">Daito Trust Construct (1878 JP)</a> at JPY260 per share, a 20.4% premium to the last close.</li>
<li>Ascot currently does not meet the 25% tradeable share ratio criterion. The offer is attractive compared to historical trading ranges but below the mid-point of the IFA DCF valuation range.</li>
<li>This is a done deal, as irrevocables represent an 82.78% ownership ratio, well above the minimum acceptance condition (67.86% ownership ratio).  </li>
</ul>



Ascot Corp (3264 JP) announced a tender offer from Daito Trust Construct (1878 JP) at JPY260 per share, a 20.4% premium to the last close.
Ascot currently does not meet the 25% tradeable share ratio criterion. The offer is attractive compared to historical trading ranges but below the mid-point of the IFA DCF valuation range.
This is a done deal, as irrevocables represent an 82.78% ownership ratio, well above the minimum acceptance condition (67.86% ownership ratio).  


Ascot Corp (3264 JP): Daito Trust Construction (1878 JP)’s Tender Offer a Done Deal

David Blennerhassett

<ul>
<li>Now the time decay to expected approvals and tender offer start for <a href="https://www.smartkarma.com/entities/jsr-corp" target="_blank" data-smartkarma-citation="entities:17620:1" rel="noopener">JSR Corp (4185 JP)</a> are getting steep. Time to Fight The FUD.</li>
<li>The accretion trade is going to plan as <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus NV (PRX NA)</a> sells <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>; and Prosus and Tencent both back their own shares.</li>
<li>
<a href="https://www.smartkarma.com/entities/hollysys-automation-technologies" target="_blank" data-smartkarma-citation="entities:26078:1" rel="noopener">Hollysys Automation Technologies (HOLI US)</a>'s board capacity to sabotage calling an SGM has finally run out of puff.</li>
</ul>


Now the time decay to expected approvals and tender offer start for JSR Corp (4185 JP) are getting steep. Time to Fight The FUD.
The accretion trade is going to plan as Prosus NV (PRX NA) sells Tencent (700 HK); and Prosus and Tencent both back their own shares.

Hollysys Automation Technologies (HOLI US)'s board capacity to sabotage calling an SGM has finally run out of puff.


Last Week in Event SPACE: JSR, Prosus/Tencent, Hollysys, Tata Consultancy, Geely, EOFlow

<ul>
<li>Back on 30 October, <a href="https://www.smartkarma.com/entities/daito-trust-construct-co-ltd" target="_blank" data-smartkarma-citation="entities:10503:1" rel="noopener">Daito Trust Construct (1878 JP)</a> announced a large earnings, a new Shareholder Return policy, a higher payout this year, and a big buyback. </li>
<li>It said the buyback period would start two days later, but they did not specify the method (<a href="https://www.smartkarma.com/insights/daito-trust-construction-1878-big-buyback-dense-register-120-payout-this-year" target="_blank" data-smartkarma-citation="insights:116772" rel="noopener">Daito Trust Construction (1878) - Big Buyback, Dense Register, 120% Payout This Year</a> </li>
<li>Today they announced a ToSTNeT-3 purchase for "the whole size", which is accompanied by a "Japan-style ASR." Know your details.</li>
</ul>


Back on 30 October, Daito Trust Construct (1878 JP) announced a large earnings, a new Shareholder Return policy, a higher payout this year, and a big buyback. 
It said the buyback period would start two days later, but they did not specify the method (Daito Trust Construction (1878) - Big Buyback, Dense Register, 120% Payout This Year 
Today they announced a ToSTNeT-3 purchase for "the whole size", which is accompanied by a "Japan-style ASR." Know your details.


Daito Trust (1878) Doing a ToSTNeT Buyback Which Is NOT a ToSTNeT Buyback...  Unless It Is.

<ul>
<li>Daito Trust last week announced H1 earnings, its 50% dividend payout ratio, and a ¥50bn stock buyback which results in a shareholder payout ratio of ~120% over the next year.</li>
<li>This should help to keep ROE high, and as it is a clear distribution of surplus, it should help keep the multiple up.</li>
<li>It is worth looking at shareholder structure to see how this buyback will be taken.</li>
</ul>


Daito Trust last week announced H1 earnings, its 50% dividend payout ratio, and a ¥50bn stock buyback which results in a shareholder payout ratio of ~120% over the next year.
This should help to keep ROE high, and as it is a clear distribution of surplus, it should help keep the multiple up.
It is worth looking at shareholder structure to see how this buyback will be taken.


Daito Trust Construction (1878) - Big Buyback, Dense Register, 120% Payout This Year

Japan

DAITO TRUST CONSTRUCTION CO., LTD. operates building construction and real estate businesses.  The Company plans and constructs apartment and commercial buildings mainly for land owners.  Daito Trust Construction provides brokerage and maintenance services as well.

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Daito Trust Construct (1878 JP)

Daito Trust Buys Out Listed Private Co Ascot (3264 JP) - Small Done Deal at ¥260

Daito Trust is buying out the investor owners of 86% of Ascot Corp, a small Tokyo-based condo developer. It's a done deal as the three with 86%...

Travis Lundy

Ascot Corp (3264 JP): Daito Trust Construction (1878 JP)’s Tender Offer a Done Deal

The offer is below the midpoint of the IFA DCF valuation range. However, this is a done deal, as irrevocables are well above the minimum number of...

Arun George

Last Week in Event SPACE: JSR, Prosus/Tencent, Hollysys, Tata Consultancy, Geely, EOFlow

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

Daito Trust (1878) Doing a ToSTNeT Buyback Which Is NOT a ToSTNeT Buyback... Unless It Is.

Daito Trust announced earnings, a higher payout, a plan to return cash, and a big buyback two weeks ago. It did not specify method. Now we know....

Travis Lundy

Daito Trust Construction (1878) - Big Buyback, Dense Register, 120% Payout This Year

Daito Trust's H1 earnings announcement upholds the 50% dividend payout ratio and a ¥50bn stock buyback means a total payout of 120% of earnings...

Travis Lundy

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52-week Range

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Daito Trust Buys Out Listed Private Co Ascot (3264 JP) - Small Done Deal at ¥260

Daito Trust is buying out the investor owners of 86% of Ascot Corp, a small Tokyo-based condo developer. It's a done deal as the three with 86%...

Travis Lundy

Ascot Corp (3264 JP): Daito Trust Construction (1878 JP)’s Tender Offer a Done Deal

The offer is below the midpoint of the IFA DCF valuation range. However, this is a done deal, as irrevocables are well above the minimum number of...

Arun George

Last Week in Event SPACE: JSR, Prosus/Tencent, Hollysys, Tata Consultancy, Geely, EOFlow

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

Daito Trust (1878) Doing a ToSTNeT Buyback Which Is NOT a ToSTNeT Buyback... Unless It Is.

Daito Trust announced earnings, a higher payout, a plan to return cash, and a big buyback two weeks ago. It did not specify method. Now we know....

Travis Lundy

Daito Trust Construction (1878) - Big Buyback, Dense Register, 120% Payout This Year

​Daito Trust's H1 earnings announcement upholds the 50% dividend payout ratio and a ¥50bn stock buyback means a total payout of 120% of earnings...

Travis Lundy

Daito Trust's H1 earnings announcement upholds the 50% dividend payout ratio and a ¥50bn stock buyback means a total payout of 120% of earnings...