Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>As discussed in <a href="https://www.smartkarma.com/insights/itoki-7972-mammoth-buyback-coming-imminently-after-35-jump" target="_blank" data-smartkarma-citation="insights:127355" rel="noopener">Itoki (7972) Mammoth Buyback Coming Imminently After 35% Jump</a>, the company was going to do a mega ToSTNeT-3 buyback between then and end-Feb. That happened this morning.</li>
<li>The company bought back 7.966mm shares (13.96%) for ¥15.9bn. That should have cleared out the bulk of the risk of the original warrant holders who bought in 2020. But...</li>
<li>The dilution/accretion don't offset perfectly, and there is a clause suggesting how this might play out from here. But we can infer things from other data we now have.</li>
</ul>


As discussed in Itoki (7972) Mammoth Buyback Coming Imminently After 35% Jump, the company was going to do a mega ToSTNeT-3 buyback between then and end-Feb. That happened this morning.
The company bought back 7.966mm shares (13.96%) for ¥15.9bn. That should have cleared out the bulk of the risk of the original warrant holders who bought in 2020. But...
The dilution/accretion don't offset perfectly, and there is a clause suggesting how this might play out from here. But we can infer things from other data we now have.


Itoki (7972 JP) - Worth Thinking About Post Mega ToSTNeT-3 Buyback

Equity Bottom-Up

<ul>
<li>Two days ago, Japanese manufacturer of ubiquitous office furniture <a href="https://www.smartkarma.com/entities/itoki-corp" target="_blank" data-smartkarma-citation="entities:18032:1" rel="noopener">Itoki Corp (7972 JP)</a> announced salutary <a href="https://ssl4.eir-parts.net/doc/7972/tdnet/2395377/00.pdf" target="_blank" rel="noopener">earnings</a>/<a href="https://ssl4.eir-parts.net/doc/7972/tdnet/2395479/00.pdf" target="_blank" rel="noopener">presentation</a>(J) results, new <a href="https://ssl4.eir-parts.net/doc/7972/ir_material_for_fiscal_ym2/150271/00.pdf" target="_blank" rel="noopener">MTMP</a>(E) outlines, new <a href="https://ssl4.eir-parts.net/doc/7972/tdnet/2395497/00.pdf" target="_blank" rel="noopener">shareholder return policy</a>(J), <a href="https://ssl4.eir-parts.net/doc/7972/tdnet/2395505/00.pdf" target="_blank" rel="noopener">yutai program</a>(J), <a href="https://ssl4.eir-parts.net/doc/7972/tdnet/2395514/00.pdf" target="_blank" rel="noopener">div hike</a>(J), and <a href="https://ssl4.eir-parts.net/doc/7972/tdnet/2395513/00.pdf" target="_blank" rel="noopener">buyback</a>(J). </li>
<li>It was a big day. The stock went limit up on 14 Feb and is +12% today. +25% in two days.</li>
<li>No single holder holds that much BUT the parameters tell you how this gets done. It's interesting, but it is important to read the fine print below!</li>
</ul>


Two days ago, Japanese manufacturer of ubiquitous office furniture Itoki Corp (7972 JP) announced salutary earnings/presentation(J) results, new MTMP(E) outlines, new shareholder return policy(J), yutai program(J), div hike(J), and buyback(J). 
It was a big day. The stock went limit up on 14 Feb and is +12% today. +25% in two days.
No single holder holds that much BUT the parameters tell you how this gets done. It's interesting, but it is important to read the fine print below!


Itoki (7972) Mammoth Buyback Coming Imminently After 35% Jump

David Blennerhassett

<ul>
<li>There is no suggestion of precondition breach attached to <a href="https://www.smartkarma.com/entities/outsourcing-inc" target="_blank" data-smartkarma-citation="entities:7431:1" rel="noopener">Outsourcing Inc (2427 JP)</a>'s impairment losses. </li>
<li>Seven Group, now holding 71.6%, has returned to the well, and made a cash/scrip Offer for shares not owned in <a href="https://www.smartkarma.com/entities/boral-ltd" target="_blank" data-smartkarma-citation="entities:1487:1" rel="noopener">Boral (BLD AU)</a>, with certain tendering thresholds triggering more cash.</li>
<li>
<a href="https://www.smartkarma.com/entities/itoki-corp" target="_blank" data-smartkarma-citation="entities:18032:1" rel="noopener">Itoki Corp (7972 JP)</a>'s mega ToSTNeT-3 buyback is now done.</li>
</ul>


There is no suggestion of precondition breach attached to Outsourcing Inc (2427 JP)'s impairment losses. 
Seven Group, now holding 71.6%, has returned to the well, and made a cash/scrip Offer for shares not owned in Boral (BLD AU), with certain tendering thresholds triggering more cash.

Itoki Corp (7972 JP)'s mega ToSTNeT-3 buyback is now done.


Last Week in Event SPACE: Outsourcing, Boral, Itoki, CIMC Vehicle, Dissentient Shareholder Rights

Japan

ITOKI CORPORATION manufactures office furniture and equipment.  The Company also produces home furniture such as work/study desks and dining sets.  Itoki focuses on the development of its mechatronic products, including automatic sorters and automated warehouses.

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Itoki Corp (7972 JP)

Itoki (7972 JP) - Worth Thinking About Post Mega ToSTNeT-3 Buyback

Itoki was to conduct a large ToSTNeT-3 buyback. They did this morning, and the largest sellers were the original warrant-holders. The data implies...

Travis Lundy

Itoki (7972) Mammoth Buyback Coming Imminently After 35% Jump

Two days ago, Itoki announced good earnings, good forecast, revised shareholder return policy, dividend surprise, dividend hike, new MTMP, and a...

Travis Lundy

Last Week in Event SPACE: Outsourcing, Boral, Itoki, CIMC Vehicle, Dissentient Shareholder Rights

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

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