Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Nikkei Leak Article of the Hitachi Transport takeover price is out. That suggests board meetings and deal announcement are imminent</li>
<li>The price suggested in the article comes out to be just under ¥8,000. </li>
<li>Past deals between KKR and Hitachi for Hitachi subs (and the language of the article on deal structure) suggest the minority Tender Offer Price could be different.</li>
</ul>


The Nikkei Leak Article of the Hitachi Transport takeover price is out. That suggests board meetings and deal announcement are imminent
The price suggested in the article comes out to be just under ¥8,000. 
Past deals between KKR and Hitachi for Hitachi subs (and the language of the article on deal structure) suggest the minority Tender Offer Price could be different.


Hitachi Transport (9086) Takeover Deal Imminent

<ul>
<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> has been "virtually" for sale since October 2019 but it did not pop when others did then. But SG and HTS "consciously uncoupled" in 2020.</li>
<li>Mid-Year last year saw news HTS was entertaining offers, which didn't go anywhere but newer news suggests Round 2 of a new course of bidding is done. </li>
<li>And the stock keeps on going up and up and up.</li>
</ul>



Hitachi Transport System (9086 JP) has been "virtually" for sale since October 2019 but it did not pop when others did then. But SG and HTS "consciously uncoupled" in 2020.
Mid-Year last year saw news HTS was entertaining offers, which didn't go anywhere but newer news suggests Round 2 of a new course of bidding is done. 
And the stock keeps on going up and up and up.


Hitachi Transport Is the Eventy Energizer Bunny

<ul>
<li>This should come as no surprise. <a href="https://www.smartkarma.com/entities/nagoya-railroad-co-ltd" target="_blank" data-smartkarma-citation="entities:8652:1" rel="noopener">Nagoya Railroad (9048 JP)</a> is buying out minorities in logistics unit <a href="https://www.smartkarma.com/entities/meitetsu-transport-co-ltd" target="_blank" data-smartkarma-citation="entities:1475:1" rel="noopener">Meitetsu Transport (9077 JP)</a>.  </li>
<li>Given the shareholder structure, this can be done and squeezed out with not a single share tendered, but it's ugly. </li>
<li>Logistics REITs trade at 1.3-1.5x book. This is being done at 0.55x book where just 1.0x book for the warehouse assets would be more than the EV at Takeover Price.</li>
</ul>


This should come as no surprise. Nagoya Railroad (9048 JP) is buying out minorities in logistics unit Meitetsu Transport (9077 JP).  
Given the shareholder structure, this can be done and squeezed out with not a single share tendered, but it's ugly. 
Logistics REITs trade at 1.3-1.5x book. This is being done at 0.55x book where just 1.0x book for the warehouse assets would be more than the EV at Takeover Price.


Meitetsu Transport (9077) Takeover - Parent "Stealing" Logistics Assets at 0.55x Book

David Blennerhassett

<ul>
<li>An analysis of the shareholder register of<a href="https://www.smartkarma.com/entities/bhp-group-plc" target="_blank" data-smartkarma-citation="entities:28086:1" rel="noopener">BHP Group PLC (BHPBF US)</a> suggests that BHP has misunderestimated the passive ownership of PLC by a lot.</li>
<li>
<a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a> looks set to add to its coffers on talk it is negotiating the sale of KFC and Pizza Hut franchises. </li>
<li>How the mighty have fallen. <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> has gone from the de-facto flag carrier to the obligatory kicking bag.</li>
</ul>


An analysis of the shareholder register ofBHP Group PLC (BHPBF US) suggests that BHP has misunderestimated the passive ownership of PLC by a lot.

Jardine Matheson Holdings (JM SP) looks set to add to its coffers on talk it is negotiating the sale of KFC and Pizza Hut franchises. 
How the mighty have fallen. Cathay Pacific Airways (293 HK) has gone from the de-facto flag carrier to the obligatory kicking bag.


Last Week in Event SPACE: BHP, Jardine Matheson, Cathay Pacific, HK&S Hotels, Large CCASS Moves

<ul>
<li>Hitachi is, as the media fuss suggests, in the last stages of its re-formation after ridding itself of nearly two-dozen listed subs over the last decade-plus.</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)</a> is the last major sub/affiliate without a new home. Hitachi owns just under 40%. <a href="https://www.smartkarma.com/entities/sg-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:26070:1" rel="noopener">SG Holdings (9143 JP)</a> owns just under 10%. Both want to sell.</li>
<li>It is not clear HTS wants to be taken private, but there could be an interesting financial engineering solution to suit the sellers. </li>
</ul>


Hitachi is, as the media fuss suggests, in the last stages of its re-formation after ridding itself of nearly two-dozen listed subs over the last decade-plus.

Hitachi Transport System (9086) is the last major sub/affiliate without a new home. Hitachi owns just under 40%. SG Holdings (9143 JP) owns just under 10%. Both want to sell.
It is not clear HTS wants to be taken private, but there could be an interesting financial engineering solution to suit the sellers. 


Hitachi Transport System (9086) - Not a Clear Outcome But Interesting Possibilities

Japan

Hitachi Transport System, Ltd. provides freight truck, port harbor, and marine transportation, logistics, cargo handling, warehousing, and customs clearing services.  The Company mainly transports Hitachi Ltd's freight such as industrial machinery and precision equipment.

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Hitachi Transport System (9086 JP)

Hitachi Transport (9086) Takeover Deal Imminent

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Hitachi Transport Is the Eventy Energizer Bunny

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Meitetsu (9048) is taking out logistics subsidiary Meitetsu Transport (9077) at the wrong price. But it will probably get away with it.

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Last Week in Event SPACE: BHP, Jardine Matheson, Cathay Pacific, HK&S Hotels, Large CCASS Moves

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

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Hitachi Transport System (9086) - Not a Clear Outcome But Interesting Possibilities

Hitachi Transport System (9086 JP) is for sale, but may not be for sale in the way many event investors want. Hitachi wants to get rid of it "as...

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