Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A Nikkei article this morning says the mystery bidder behind WK1/2/3 Limited is Nintendo founding family's Yamauchi No.10 Family Office. This changes things more than just knowing their identity does.</li>
<li>To start, their website is the most fun investment management company website I have come across. It's great.  <a href="https://y-n10.com/" target="_blank" rel="noopener">https://y-n10.com/</a>. It's also well worth reading. It's also worth noting their history.</li>
<li>Understanding the parameters here is key to understanding possible next steps.</li>
</ul>


A Nikkei article this morning says the mystery bidder behind WK1/2/3 Limited is Nintendo founding family's Yamauchi No.10 Family Office. This changes things more than just knowing their identity does.
To start, their website is the most fun investment management company website I have come across. It's great.  https://y-n10.com/. It's also well worth reading. It's also worth noting their history.
Understanding the parameters here is key to understanding possible next steps.


ToyoKen (1890) Mystery Bidder Is Yamauchi No. 10 Family Office - And That Changes Things

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/ihara-science-corp" target="_blank" data-smartkarma-citation="entities:9870:1" rel="noopener">Ihara Science (5999 JP)</a> reported on TDNet a forthcoming change in the Tender Offer Registration Statement by MBO bidder N.I.M.</li>
<li>N.I.M. and normally-known-as-deep-value-activist NAVF (a.k.a. Nippon Active Value Fund), Ihara Science's #2 shareholder, signed a Tender Offer Agreement whereby NAVF agreed to tender. </li>
<li>It got a little more complicated 90mins later, but this was an announcement which did not need to be made. It begs the question of why. And what next.</li>
</ul>


Today after the close, Ihara Science (5999 JP) reported on TDNet a forthcoming change in the Tender Offer Registration Statement by MBO bidder N.I.M.
N.I.M. and normally-known-as-deep-value-activist NAVF (a.k.a. Nippon Active Value Fund), Ihara Science's #2 shareholder, signed a Tender Offer Agreement whereby NAVF agreed to tender. 
It got a little more complicated 90mins later, but this was an announcement which did not need to be made. It begs the question of why. And what next.


Ihara Science (5999 JP) - Not Over But Not a Great Look

<ul>
<li>In my first piece, <a href="https://www.smartkarma.com/insights/ihara-science-5999-jp-sees-the-chairman-launch-an-mbo-i-might-expect-excitement" target="_blank" data-smartkarma-citation="insights:95308" rel="noopener">Ihara Science (5999 JP) Sees the Chairman Launch an MBO. I Might Expect Excitement</a> I noted that the price was too low. I expected activist efforts.</li>
<li>The price did not trade below the Tender Offer Price after it opened for trading. That was a sign this wasn't going to go easy.</li>
<li>This morning I am made aware of a letter from one of the "active if not activist" shareholders saying the price is too low. Hint: It is.</li>
</ul>


In my first piece, Ihara Science (5999 JP) Sees the Chairman Launch an MBO. I Might Expect Excitement I noted that the price was too low. I expected activist efforts.
The price did not trade below the Tender Offer Price after it opened for trading. That was a sign this wasn't going to go easy.
This morning I am made aware of a letter from one of the "active if not activist" shareholders saying the price is too low. Hint: It is.


Ihara Science (5999 JP) - Here Comes The Bumpitrage

<ul>
<li>The <a href="https://www.smartkarma.com/entities/kito-corporation" target="_blank" data-smartkarma-citation="entities:19512:1" rel="noopener">Kito Corporation (6409 JP)</a> take-private by KKR which is in process started with an interesting register. It has become interestinger.</li>
<li>One possibly-strategic "pure investment" holder has gone 10+%. A "friendly activist" has gone below. Another large friendly holder sold 4%. Volume since it achieved near-deal-price has been 24.7% of votes. </li>
<li>The register has likely become more arb-y and possibly strategic, and less friendly to Kito, but it is up to the holders to follow up. And there is a warning.</li>
</ul>


The Kito Corporation (6409 JP) take-private by KKR which is in process started with an interesting register. It has become interestinger.
One possibly-strategic "pure investment" holder has gone 10+%. A "friendly activist" has gone below. Another large friendly holder sold 4%. Volume since it achieved near-deal-price has been 24.7% of votes. 
The register has likely become more arb-y and possibly strategic, and less friendly to Kito, but it is up to the holders to follow up. And there is a warning.


Kito (6409) - Shareholder Register Quirks Evolving - Becoming More Arb-Y Less Friendly

<ul>
<li>WK 1-3 Limited are now (as of a week ago) 17.34% of Toyo Construction's share register. They bought 40+% of volume in the relevant period, as I suggested they might.</li>
<li>On a realtime basis, they could be 20+%, but because no single entity is there they would not become top shareholder as a triumvirate.</li>
<li>I offer consolidated thoughts and like the idea of buying the dip.</li>
</ul>


WK 1-3 Limited are now (as of a week ago) 17.34% of Toyo Construction's share register. They bought 40+% of volume in the relevant period, as I suggested they might.
On a realtime basis, they could be 20+%, but because no single entity is there they would not become top shareholder as a triumvirate.
I offer consolidated thoughts and like the idea of buying the dip.


Toyo Construction (1890) - Mystery Holders Now 17% (Or More)

Japan

SAKAI OVEX CO., LTD. processes synthetic fabrics, focusing on the dyeing process.  The Company also designs, manufactures, and sells apparel and textile products on Original Equipment Manufacturer(OEM) basis.  Sakai Ovex also plans and produces factory automation system.

Sakai Ovex (3408 JP)

ToyoKen (1890) Mystery Bidder Is Yamauchi No. 10 Family Office - And That Changes Things

The Mystery Bidders WK 1-3 are, according to a Nikkei article in mid-day, Yamauchi Number 10 Family Office. This changes things. It is worth...

Travis Lundy

Ihara Science (5999 JP) - Not Over But Not a Great Look

Activist NAVF has decided to tender their shares in Ihara Science to the MBO, at an obviously inadequate price. It's a bid odd, but investors gonna...

Travis Lundy

Ihara Science (5999 JP) - Here Comes The Bumpitrage

The chairman of Ihara Science (5999 JP) a leading specialty piping company, made an offer to buy the company out. It was too low. Now one...

Travis Lundy

Kito (6409) - Shareholder Register Quirks Evolving - Becoming More Arb-Y Less Friendly

The shareholder register of Kito (6409) is evolving rapidly. With many months to go, in 3 weeks 25% of the shares out have traded. Two large...

Travis Lundy

Toyo Construction (1890) - Mystery Holders Now 17% (Or More)

The WK 1.2.3 entities are now (as of 5 April) 17.3% of the Toyo Construction register, nearing Infroneer's 20%. They may already be there on a...

Travis Lundy