Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pasona-group-inc" target="_blank" data-smartkarma-citation="entities:15778:1" rel="noopener">Pasona Group (2168 JP)</a> is a "value stock." It has loads of cash (but less than you think) and significant ongoing governance issues, but they are doing a TINY buyback. </li>
<li>Several weeks ago we got an announcement which was odd. Not completely odd, just odd. Now in the past week we have market activity/announcements which make one wonder. </li>
<li>This piece attempts to interpret some of the recent data/info points. One is odd. Another is odd but meaningful (but different than people think). A third is just technical. </li>
</ul>



Pasona Group (2168 JP) is a "value stock." It has loads of cash (but less than you think) and significant ongoing governance issues, but they are doing a TINY buyback. 
Several weeks ago we got an announcement which was odd. Not completely odd, just odd. Now in the past week we have market activity/announcements which make one wonder. 
This piece attempts to interpret some of the recent data/info points. One is odd. Another is odd but meaningful (but different than people think). A third is just technical. 


[Japan Activism] Pasona Group (2168 JP) - Three New Things Of Mixed Importance

<ul>
<li>On Friday, <a href="https://www.smartkarma.com/entities/pasona-group-inc" target="_blank" data-smartkarma-citation="entities:15778:1" rel="noopener">Pasona Group (2168 JP)</a> announced its expected use of funds into the May 2024 results, including a special dividend plan, investment for growth, and "strengthening the operating platform."</li>
<li>The plan will disappoint. The stock may get hit hard. The truth is somewhere in the middle. This is where active stewardship matters. So get stewarding.</li>
<li>A special div paid over 5yrs should be paid one-shot, now. If the company has plans worth supporting, set KPIs now, ask for money later. Good plans get good money.</li>
</ul>


On Friday, Pasona Group (2168 JP) announced its expected use of funds into the May 2024 results, including a special dividend plan, investment for growth, and "strengthening the operating platform."
The plan will disappoint. The stock may get hit hard. The truth is somewhere in the middle. This is where active stewardship matters. So get stewarding.
A special div paid over 5yrs should be paid one-shot, now. If the company has plans worth supporting, set KPIs now, ask for money later. Good plans get good money.


Pasona (2168 JP) Special Div - Too Small to Matter

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/dai-ichi-life-insurance" target="_blank" data-smartkarma-citation="entities:1109:1" rel="noopener">Dai Ichi Life Insurance (8750 JP)</a>  announced a proposed counter/over-bid for <a href="https://www.smartkarma.com/entities/benefit-one-inc" target="_blank" data-smartkarma-citation="entities:14502:1" rel="noopener">Benefit One Inc (2412 JP)</a>. ¥1800/share for minorities and a better (undefined) outcome for <a href="https://www.smartkarma.com/entities/pasona-group-inc" target="_blank" data-smartkarma-citation="entities:15778:1" rel="noopener">Pasona Group (2168 JP)</a>. </li>
<li>This throws the cat amongst the pigeons as it is unsolicited, for 100% not just to get Pasona's stake, and it will require Benefit One recommend or not.</li>
<li>For Pasona, this deal structure would likely increase the net result from the stake sale, possibly substantially so. It's in the details. </li>
</ul>


Today, Dai Ichi Life Insurance (8750 JP)  announced a proposed counter/over-bid for Benefit One Inc (2412 JP). ¥1800/share for minorities and a better (undefined) outcome for Pasona Group (2168 JP). 
This throws the cat amongst the pigeons as it is unsolicited, for 100% not just to get Pasona's stake, and it will require Benefit One recommend or not.
For Pasona, this deal structure would likely increase the net result from the stake sale, possibly substantially so. It's in the details. 


New Deal for Benefit One (2168) Could Mean Lots More Money for Pasona (2168)

<ul>
<li>As discussed <a href="https://www.smartkarma.com/insights/big-m3-2413-partial-tob-as-pasona-sells-control-of-benefit-one-2412-really-interesting-dynamics" target="_blank" rel="noopener">here</a> in a piece about the Partial Tender Offer<a href="https://www.smartkarma.com/insights/big-m3-2413-partial-tob-as-pasona-sells-control-of-benefit-one-2412-really-interesting-dynamics" target="_blank" data-smartkarma-citation="insights:117493" rel="noopener"></a>, Pasona Group (2168) has agreed to sell its controlling stake in Benefit One (2412) to M3 (2413).</li>
<li>That will leave Pasona Group with a fair chunk of cash and possibly a residual stake in Benefit One, depending on the results.</li>
<li>Though we don't know what the future holds, Pasona now is the wrong price for its future. </li>
</ul>


As discussed here in a piece about the Partial Tender Offer, Pasona Group (2168) has agreed to sell its controlling stake in Benefit One (2412) to M3 (2413).
That will leave Pasona Group with a fair chunk of cash and possibly a residual stake in Benefit One, depending on the results.
Though we don't know what the future holds, Pasona now is the wrong price for its future. 


David Blennerhassett

<ul>
<li>The value realisation of selling cross-holdings should not be contingent on selling your shares to someone else too cheaply but that is exactly what Toyota is proposing here.</li>
<li>OCBC is doing the right thing. Although a 17.8% bump in terms for <a href="https://www.smartkarma.com/entities/great-eastern-holdings-ltd" target="_blank" data-smartkarma-citation="entities:13993:1" rel="noopener">Great Eastern Holdings (GE SP)</a>'s minorities is probably not enough to dislodge Palliser.</li>
<li>Cosette has lodged a termination notice, which <a href="https://www.smartkarma.com/entities/mayne-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:757:1" rel="noopener">Mayne Pharma (MYX AU)</a> rejects. It's anyone's guess whether this saga concludes with a price cut; or Cosette walking.</li>
</ul>


The value realisation of selling cross-holdings should not be contingent on selling your shares to someone else too cheaply but that is exactly what Toyota is proposing here.
OCBC is doing the right thing. Although a 17.8% bump in terms for Great Eastern Holdings (GE SP)'s minorities is probably not enough to dislodge Palliser.
Cosette has lodged a termination notice, which Mayne Pharma (MYX AU) rejects. It's anyone's guess whether this saga concludes with a price cut; or Cosette walking.


Last Week in Event SPACE: Toyota Indust. Great Eastern, Mayne Pharma, Shibaura Elect., New World

Japan

Pasona Group Inc. manages companies that provide placement and staffing services for clients in the information technology sector.

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Pasona Group (2168 JP)

[Japan Activism] Pasona Group (2168 JP) - Three New Things Of Mixed Importance

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New Deal for Benefit One (2168) Could Mean Lots More Money for Pasona (2168)

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Pasona: The Wrong Price

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Last Week in Event SPACE: Toyota Indust. Great Eastern, Mayne Pharma, Shibaura Elect., New World

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...

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