Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Investors see value in <a href="https://www.smartkarma.com/entities/toyota-industries-corp" target="_blank" data-smartkarma-citation="entities:4500:1" rel="noopener">Toyota Industries (6201 JP)</a>. Many are concerned TICO and TM will deliberately engage in bad corporate governance to punish minorities if the Offer doesn't go through.</li>
<li>It's doubtful an international tribunal has the clout to overturn <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CKH (1 HK)</a>'s Supreme Court decision. The safe takeaway here is that this entire construct won't be concluded anytime soon.</li>
<li>
<a href="https://www.smartkarma.com/entities/melco-international-development-ltd" target="_blank" data-smartkarma-citation="entities:809:1" rel="noopener">Melco International Development (200 HK)</a>'s divergence with <a href="https://www.smartkarma.com/entities/melco-crown-entertainme-adr" target="_blank" data-smartkarma-citation="entities:810:1" rel="noopener">Melco Resorts &amp; Entertainment (MLCO US)</a> is a curious thing. Is a statutory merger in the wings?</li>
</ul>


Investors see value in Toyota Industries (6201 JP). Many are concerned TICO and TM will deliberately engage in bad corporate governance to punish minorities if the Offer doesn't go through.
It's doubtful an international tribunal has the clout to overturn CKH (1 HK)'s Supreme Court decision. The safe takeaway here is that this entire construct won't be concluded anytime soon.

Melco International Development (200 HK)'s divergence with Melco Resorts &amp; Entertainment (MLCO US) is a curious thing. Is a statutory merger in the wings?


Last Week In Event SPACE: CKH, Toyota Industries, Melco, Rio/Glencore, Guoco

Travis Lundy

<ul>
<li>Friday after the close, City Index Eleventh announced that it and joint holders held 7.36% of <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a> which is currently undergoing a Tender Offer.</li>
<li>I had said at the beginning this might need a bump. Units opened just above terms on Day 1, stayed at or around. Now they are trading 7% through.</li>
<li>Murakami group likely controls the outcome here. That could mean a bump. It could mean buying into the bidco as a silent partner. Think of what you'd rather own.</li>
</ul>


Friday after the close, City Index Eleventh announced that it and joint holders held 7.36% of Sankei Real Estate (2972 JP) which is currently undergoing a Tender Offer.
I had said at the beginning this might need a bump. Units opened just above terms on Day 1, stayed at or around. Now they are trading 7% through.
Murakami group likely controls the outcome here. That could mean a bump. It could mean buying into the bidco as a silent partner. Think of what you'd rather own.


[Japan M&A/Activism] Murakami Group Jump into Sankei REIT (2972) Complicating Things

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sgh-limited" target="_blank" data-smartkarma-citation="entities:803:1" rel="noopener">SGH Limited (SGH AU)</a>/<a href="https://www.smartkarma.com/entities/steel-dynamics-inc" target="_blank" data-smartkarma-citation="entities:11061:1" rel="noopener">Steel Dynamics (STLD US)</a>'s indicative Offer for <a href="https://www.smartkarma.com/entities/bluescope-steel-ltd" target="_blank" data-smartkarma-citation="entities:207:1" rel="noopener">Bluescope Steel (BSL AU)</a>was light from the onset. They'd need bump terms bigly for any deal to move forward. </li>
<li>The<a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">Aeon Co Ltd (8267 JP)</a>'s Tender Offer for <a href="https://www.smartkarma.com/entities/tsuruha-holdings-inc" target="_blank" data-smartkarma-citation="entities:9536:1" rel="noopener">Tsuruha Holdings (3391 JP)</a> shows a 100% pro-ration.  A LOT of long-only and retail holders did NOT tender.</li>
<li>Air China's share placing agreement, is very clearly geared to get their stake &lt;30% after <a href="https://www.smartkarma.com/entities/cathay-pacific-airways-ltd" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific Airways (293 HK)</a>buys back Qatar Airways' stake.  </li>
</ul>



SGH Limited (SGH AU)/Steel Dynamics (STLD US)'s indicative Offer for Bluescope Steel (BSL AU)was light from the onset. They'd need bump terms bigly for any deal to move forward. 
TheAeon Co Ltd (8267 JP)'s Tender Offer for Tsuruha Holdings (3391 JP) shows a 100% pro-ration.  A LOT of long-only and retail holders did NOT tender.
Air China's share placing agreement, is very clearly geared to get their stake &lt;30% after Cathay Pacific Airways (293 HK)buys back Qatar Airways' stake.  


Last Week In Event SPACE: Bluescope Steel, Cathay Pacific, Sunny Optical

<ul>
<li>I tally 37 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.</li>
<li>Two new deals were discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a>and <a href="https://www.smartkarma.com/entities/hisamitsu-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:17008:1" rel="noopener">Hisamitsu Pharmaceutical Co (4530 JP)</a>.</li>
<li>Key updates/news also took place on: <a href="https://www.smartkarma.com/entities/ane-cayman-inc" target="_blank" data-smartkarma-citation="entities:35025:1" rel="noopener">ANE Cayman Inc (9956 HK)</a>, <a href="https://www.smartkarma.com/entities/jinke-smart-services-group-co" target="_blank" data-smartkarma-citation="entities:29214:1" rel="noopener">Jinke Smart Services (9666 HK)</a>, <a href="https://www.smartkarma.com/entities/tsuruha-holdings-inc" target="_blank" data-smartkarma-citation="entities:9536:1" rel="noopener">Tsuruha Holdings (3391 JP)</a>, and <a href="https://www.smartkarma.com/entities/hang-seng-bank-ltd" target="_blank" data-smartkarma-citation="entities:24:1" rel="noopener">Hang Seng Bank (11 HK)</a>.</li>
</ul>


I tally 37 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
Two new deals were discussed on Smartkarma this week: Sankei Real Estate (2972 JP)and Hisamitsu Pharmaceutical Co (4530 JP).
Key updates/news also took place on: ANE Cayman Inc (9956 HK), Jinke Smart Services (9666 HK), Tsuruha Holdings (3391 JP), and Hang Seng Bank (11 HK).


Asia-Pac M&A Weekly Wrap:ANE Cayman, Tsuruha/Aeon, Jinke Smart, Sankei Real Estate, Hisamitsu Pharma

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/tosei-corp" target="_blank" data-smartkarma-citation="entities:11224:1" rel="noopener">Tosei Corp (8923 JP)</a> and GIC announced they would launch a TOB for <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a>, which is end-sponsored by <a href="https://www.smartkarma.com/entities/fuji-media-holdings-inc" target="_blank" data-smartkarma-citation="entities:3191:1" rel="noopener">Fuji Media Holdings (4676 JP)</a>. </li>
<li>This gets Fuji Media out of a small asset and side business they don't need, and it clears out a small office-heavy diversified REIT which doesn't need to exist.</li>
<li>This is not a bad price. It is not necessarily over the top, but other larger REITs are cheaper. There is some weirdness in holder structure to watch out for.</li>
</ul>


Today, Tosei Corp (8923 JP) and GIC announced they would launch a TOB for Sankei Real Estate (2972 JP), which is end-sponsored by Fuji Media Holdings (4676 JP). 
This gets Fuji Media out of a small asset and side business they don't need, and it clears out a small office-heavy diversified REIT which doesn't need to exist.
This is not a bad price. It is not necessarily over the top, but other larger REITs are cheaper. There is some weirdness in holder structure to watch out for.


[Japan M&A] Tosei & GIC Bid for Office-Heavy Sankei REIT (2972 JP) At 1.15x PNAV

Japan

FUJI MEDIA HOLDINGS, INC., a member of the Fuji-Sankei Group, produces and broadcasts a variety of television programs and sells commercial spots through a network system.  The Company is advancing into digital satellite broadcasting.

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Fuji Media Holdings (4676 JP)

Last Week In Event SPACE: CKH, Toyota Industries, Melco, Rio/Glencore, Guoco

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

[Japan M&A/Activism] Murakami Group Jump into Sankei REIT (2972) Complicating Things

The Sankei Real Estate REIT (2972 JP) was likely to need a bump. Now you have one as Murakami-san bought 7.36% at 2bp through, and likely now owns...

Travis Lundy

Last Week In Event SPACE: Bluescope Steel, Cathay Pacific, Sunny Optical

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Asia-Pac M&A Weekly Wrap:ANE Cayman, Tsuruha/Aeon, Jinke Smart, Sankei Real Estate, Hisamitsu Pharma

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

[Japan M&A] Tosei & GIC Bid for Office-Heavy Sankei REIT (2972 JP) At 1.15x PNAV

Sankei Building is getting out of its REIT. Tosei Corp and GIC are bidding to take it private. It's a decent bid if not a total knockout, but I...

Travis Lundy

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