Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson (JM SP)</a>'s 77.8%-held <a href="https://www.smartkarma.com/entities/dfi-retail-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:7427:1" rel="noopener">DFI Retail Group (DFI SP)</a> has sold its entire 22.2% stake in <a href="https://www.smartkarma.com/entities/robinsons-retail-holdings-inc" target="_blank" data-smartkarma-citation="entities:10598:1" rel="noopener">Robinsons Retail Holdings (RRHI PM)</a> for ~US$283mn to "support its capital allocation strategy".</li>
<li>Preceding my comments on Matheson are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



Jardine Matheson (JM SP)'s 77.8%-held DFI Retail Group (DFI SP) has sold its entire 22.2% stake in Robinsons Retail Holdings (RRHI PM) for ~US$283mn to "support its capital allocation strategy".
Preceding my comments on Matheson are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


Event-Driven

Washington H. Soul Pattinson and Co. Ltd / Event-Driven

Washington H. Soul Pattinson and Co. Ltd (SOL AU)

<ul>
<li>The cross-shareholding between <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Washington H. Soul Pattinson (SOL AU)</a> (Soul Patts) and <a href="https://www.smartkarma.com/entities/brickworks-ltd" target="_blank" data-smartkarma-citation="entities:2726:1" rel="noopener">Brickworks Ltd (BKW AU)</a> was established in 1969 to defend the companies from corporate raiders.</li>
<li>Perpetual pursued a case in the Federal Court of Australia, alleging that the cross-shareholding was oppressive to minority shareholders; however the claim was dismissed in 2017.</li>
<li>Today, via inter-conditional Schemes, the circularity is set to be unwound through a merger. Soul Patts currently owns 43.3% in Brickworks, and Brickworks 26% in Soul Patts. </li>
</ul>


The cross-shareholding between Washington H. Soul Pattinson (SOL AU) (Soul Patts) and Brickworks Ltd (BKW AU) was established in 1969 to defend the companies from corporate raiders.
Perpetual pursued a case in the Federal Court of Australia, alleging that the cross-shareholding was oppressive to minority shareholders; however the claim was dismissed in 2017.
Today, via inter-conditional Schemes, the circularity is set to be unwound through a merger. Soul Patts currently owns 43.3% in Brickworks, and Brickworks 26% in Soul Patts. 


Soul Patts/Brickworks To Unwind Circularity

<ul>
<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> posted a 11% drop in FY24 underlying profit; but has promptly gained 9% since.</li>
<li>Preceding my comments on Matheson are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



Jardine Matheson Holdings (JM SP) posted a 11% drop in FY24 underlying profit; but has promptly gained 9% since.
Preceding my comments on Matheson are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


<ul>
<li>To avoid a political landmine, on the 4th March <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>  <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0304/2025030402128.pdf" target="_blank" rel="noopener">announced</a> a deal with Blackrock to offload its entire port ops, including the contentious Panama ports.</li>
<li>It's an astute deal selling to a buyer, ostensibly backed by the Trump administration, at the top of the market, knowing global trade could fall under a new tariff regime.</li>
<li>The risk to the transaction is one of timing. US/Panama approvals are a shoo-in. But it's a complex deal, which will take time to work through the system.</li>
</ul>


To avoid a political landmine, on the 4th March CK Hutchison Holdings (1 HK)  announced a deal with Blackrock to offload its entire port ops, including the contentious Panama ports.
It's an astute deal selling to a buyer, ostensibly backed by the Trump administration, at the top of the market, knowing global trade could fall under a new tariff regime.
The risk to the transaction is one of timing. US/Panama approvals are a shoo-in. But it's a complex deal, which will take time to work through the system.


<ul>
<li>After publishing my insight (<a href="https://skr.ma/y1QWE" target="_blank" rel="noopener">Jardine Matheson (JM SP): Trading "Cheap"</a>) last week, my NAV calcs were called into question by some readers, when compared to street estimates.</li>
<li>Which is cool. I'm big enough to admit mistakes, where needed. So I've done some digging, including a back and forth with <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>.</li>
<li>The upshot? I have not lead you astray. You've been coming to the right place.</li>
</ul>


After publishing my insight (Jardine Matheson (JM SP): Trading "Cheap") last week, my NAV calcs were called into question by some readers, when compared to street estimates.
Which is cool. I'm big enough to admit mistakes, where needed. So I've done some digging, including a back and forth with Jardine Matheson Holdings (JM SP).
The upshot? I have not lead you astray. You've been coming to the right place.


Jardine Matheson (JM SP): Squeezing More Life Out Of The NAV

Bermuda

Jardine Strategic is an investment holding company that manages long-term strategic interests in a diversified portfolio of market-leading businesses, primarily focused on Asia. Its principal investments span sectors such as property, retail, hospitality, motor vehicles, engineering, and financial services. The company was founded in 1986 and is based in Hamilton, Bermuda.

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Jardine Strategic (JDSHF US)

StubWorld: DFI Exits Robinson Retail

Often it pays to invest where the Keswick invest - or Matheson. At the NAV ave., and below the implied stub ave,, that 's my bet. Outright, or set...

David Blennerhassett

Soul Patts/Brickworks To Unwind Circularity

The obvious trade is to short SOL, buy BKW. I see the current spread at 3.1%. BKW is not super lilquid. No urgency to chase the spread.

David Blennerhassett

StubWorld: Matheson Looks Stretched

A stock standard takeaway for certain holdcos is to invest where the family invests - or JMH in this case. However, JMH appers stretched here. I...

David Blennerhassett

CK Hutch (1 HK): Still Trading Cheap

It's an astute deal selling to a buyer eager to please Trump at the top of the market, knowing that global trade could fall under a new tariff...

David Blennerhassett

Jardine Matheson (JM SP): Squeezing More Life Out Of The NAV

I've bolted on US$0.5bn to NAV. That adjustment doesn't move the needle. Look to set up the stub: Long JMH, short DFI, HKL, MO & JC&C on a...

David Blennerhassett

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