Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

<ul>
<li>Yesterday post-close, <a href="https://www.smartkarma.com/entities/sakata-inx-corp" target="_blank" data-smartkarma-citation="entities:19446:1" rel="noopener">Sakata Inx Corp (4633 JP)</a> announced a ¥6bn+ selldown offering by financial crossholders. There may be others to come, but not clear how much.</li>
<li>The company has had a good couple of years, the stock has reached book value. Optimised balance sheet ROE now clears 10%.</li>
<li>Index impact is limited in all respects. Low vol, low multiple, decent dividend, high earnings progression on decent business growth are all positive factors. </li>
</ul>


Yesterday post-close, Sakata Inx Corp (4633 JP) announced a ¥6bn+ selldown offering by financial crossholders. There may be others to come, but not clear how much.
The company has had a good couple of years, the stock has reached book value. Optimised balance sheet ROE now clears 10%.
Index impact is limited in all respects. Low vol, low multiple, decent dividend, high earnings progression on decent business growth are all positive factors. 


[Japan Offering] Sakata Inx (4633 JP) Selldown by Financial Crossholders

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sakata-inx-corp" target="_blank" data-smartkarma-citation="entities:19446:1" rel="noopener">Sakata Inx Corp (4633 JP)</a> and <a href="https://www.smartkarma.com/entities/toyo-ink-sc-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:13233:1" rel="noopener">Toyo Ink Sc Holdings (4634 JP)</a> are finally getting around to unwinding the rest of their cross-holdings from their decision 5yrs ago.</li>
<li>This is highly accretive. +10% on EPS this year on a weighted average basis and +16.8% on a spot basis. </li>
<li>The reason is good governance and capital efficiency. A side effect is it shifts the shareholder structure more in favor of economic investors. </li>
</ul>



Sakata Inx Corp (4633 JP) and Toyo Ink Sc Holdings (4634 JP) are finally getting around to unwinding the rest of their cross-holdings from their decision 5yrs ago.
This is highly accretive. +10% on EPS this year on a weighted average basis and +16.8% on a spot basis. 
The reason is good governance and capital efficiency. A side effect is it shifts the shareholder structure more in favor of economic investors. 


Sakata Inx (4633) HUGE Buyback Makes Things Interesting

David Blennerhassett

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<p>This week in StubWorld ...</p>
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<p>A change of pace with two infrequently discussed stubs in unwind territory:<br><a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener"></a></p>
<p><a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener"></a><a href="https://www.smartkarma.com/entities/news-corp-class-b" target="_blank" data-smartkarma-citation="entities:5990:1" rel="noopener">News Corp (NWSA US)</a><a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">  / </a><a href="https://www.smartkarma.com/entities/rea-group-ltd" target="_blank" data-smartkarma-citation="entities:699:1" rel="noopener">REA Group Ltd (REA AU)</a>, and<br><a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> / <a href="https://www.smartkarma.com/entities/nomura-research-institute-ltd" target="_blank" data-smartkarma-citation="entities:18129:1" rel="noopener">Nomura Research Institute Ltd (4307 JP)</a>.</p>
<p><em>and ...</em></p>
<p>two lesser-known stubs in set-up territory:<br><br><a href="https://www.smartkarma.com/entities/iljin-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:11265:1" rel="noopener">Iljin Holdings (015860 KS)</a> / <a href="https://www.smartkarma.com/entities/iljin-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:4098:1" rel="noopener">Iljin Electric (103590 KS)</a>, and<br><a href="https://www.smartkarma.com/entities/sakata-inx-corp" target="_blank" data-smartkarma-citation="entities:19446:1" rel="noopener">Sakata Inx Corp (4633 JP)</a>  / <a href="https://www.smartkarma.com/entities/siix-corp" target="_blank" data-smartkarma-citation="entities:13244:1" rel="noopener">Siix Corp (7613 JP)</a>.</p>
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</div>
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<p>Preceding my comments on these holding company relationships<a href="https://www.smartkarma.com/entities/pccw-ltd" target="_blank" data-smartkarma-citation="entities:873:1" rel="noopener"></a> are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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<p>As always, more below the fold.</p>
</div>


This week in StubWorld ...



A change of pace with two infrequently discussed stubs in unwind territory: 
News Corp (NWSA US)  / REA Group Ltd (REA AU), and Jafco Co Ltd (8595 JP) / Nomura Research Institute Ltd (4307 JP).
and ...
two lesser-known stubs in set-up territory:  Iljin Holdings (015860 KS) / Iljin Electric (103590 KS), and Sakata Inx Corp (4633 JP)  / Siix Corp (7613 JP).



Preceding my comments on these holding company relationships are the weekly setup/unwind tables for Asia-Pacific Holdcos.


These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


As always, more below the fold.


StubWorld: News Corp/REA Group, Jafco/Nomura Research, Iljin Holdings/Iljin Electric, Sakata/SIIX

<p>This week in StubWorld ...</p>
<p>For a slight change of pace, I briefly touch on three Holdco structures - two at setup levels, one at an unwind level - currently trading above 3 STD from its 90-day average. These include:</p>
<p><a href="https://www.smartkarma.com/entities/h2o-retailing-corp" target="_blank" data-smartkarma-citation="entities:17562:1" rel="noopener">H2 O Retailing (8242 JP)</a> / <a href="https://www.smartkarma.com/entities/toho-co-ltd" target="_blank" data-smartkarma-citation="entities:7806:1" rel="noopener">Toho Co Ltd (9602 JP)</a> <br><a href="https://www.smartkarma.com/entities/hyundai-mobis-co-ltd" target="_blank" data-smartkarma-citation="entities:6089:1" rel="noopener">Hyundai Mobis (012330 KS)</a> / <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a><br><a href="https://www.smartkarma.com/entities/sakata-inx-corp" target="_blank" data-smartkarma-citation="entities:19446:1" rel="noopener">Sakata Inx Corp (4633 JP)</a> / <a href="https://www.smartkarma.com/entities/siix-corp" target="_blank" data-smartkarma-citation="entities:13244:1" rel="noopener">Siix Corp (7613 JP)</a>  <br><br>Preceding my comments on these Holdcos are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
<div class="content-remarks">
<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
</div>

This week in StubWorld ...
For a slight change of pace, I briefly touch on three Holdco structures - two at setup levels, one at an unwind level - currently trading above 3 STD from its 90-day average. These include:
H2 O Retailing (8242 JP) / Toho Co Ltd (9602 JP)  Hyundai Mobis (012330 KS) / Hyundai Motor Co (005380 KS) Sakata Inx Corp (4633 JP) / Siix Corp (7613 JP)    Preceding my comments on these Holdcos are the weekly setup/unwind tables for Asia-Pacific Holdcos.

These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


<p>Five Japanese companies announced ToSTNeT-3 Buybacks after the close of trading today: <a href="https://www.smartkarma.com/entities/1428" target="_blank" data-smartkarma-citation="entities:1428:1">Temp Holdings Co Ltd (2181 JP)</a> , <a href="https://www.smartkarma.com/entities/18275" target="_blank" data-smartkarma-citation="entities:18275:1">Nishio Rent All Co Ltd (9699 JP)</a> , <a href="https://www.smartkarma.com/entities/19446" target="_blank" data-smartkarma-citation="entities:19446:1">Sakata Inx Corp (4633 JP)</a> , <a href="https://www.smartkarma.com/entities/13233" target="_blank" data-smartkarma-citation="entities:13233:1">Toyo Ink Sc Holdings Co Ltd (4634 JP)</a> , and <a href="https://www.smartkarma.com/entities/3222" target="_blank" data-smartkarma-citation="entities:3222:1">Denkyosha Co Ltd (8144 JP)</a> . </p><p><em>If you have no cares in these names, please read no further. This is just a public service in case you do.</em></p><table class="table table-striped"><tbody>
<tr>
<td>Anncmt</td>
<td>Ticker</td>
<td>Company Name</td>
<td>MktCap</td>
<td>Shs To <br>Buy Back</td>
<td>% Shs <br>O/S</td>
<td>Price</td>
<td>Amount</td>
<td>
<p>If Complete,</p>
<p>Resulting TSY Shrs</p>
</td>
</tr>
<tr>
<td style="text-align: center;"><a href="https://www.release.tdnet.info/inbs/140120170220403231.pdf" target="_blank">❖</a></td>
<td>8144</td>
<td>Denkyosha</td>
<td style="text-align: right;">¥8.5bn</td>
<td style="text-align: right;">180,000</td>
<td style="text-align: right;">2.87%</td>
<td style="text-align: right;">¥1,278</td>
<td style="text-align: right;">¥0.23</td>
</tr>
</tbody></table>…

Five Japanese companies announced ToSTNeT-3 Buybacks after the close of trading today: Temp Holdings Co Ltd (2181 JP) , Nishio Rent All Co Ltd (9699 JP) , Sakata Inx Corp (4633 JP) , Toyo Ink Sc Holdings Co Ltd (4634 JP) , and Denkyosha Co Ltd (8144 JP) . If you have no cares in these names, please read no further. This is just a public service in case you do.

Anncmt
Ticker
Company Name
MktCap
Shs To  Buy Back
% Shs  O/S
Price
Amount

If Complete,
Resulting TSY Shrs



❖
8144
Denkyosha
¥8.5bn
180,000
2.87%
¥1,278
¥0.23

…

JAPAN BUYBACKS:  ToSTNeT-3 Buybacks for 2/21/2017

Japan

SAKATA INX CORPORATION mainly produces printing inks, equipment, and other related materials for the newspaper and cardboard industries.

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Sakata Inx Corp (4633 JP)

[Japan Offering] Sakata Inx (4633 JP) Selldown by Financial Crossholders

Sakata Inx has announced a secondary offering by financial crossholders. This looks like an opportunity to buy a dip but notably, the company is...

Travis Lundy

Sakata Inx (4633) HUGE Buyback Makes Things Interesting

Sakata Inx and Toyo Ink are finally unwinding their cross-holdings after starting 5+yrs ago. The reason is Corporate Governance Code and corporate...

Travis Lundy

StubWorld: News Corp/REA Group, Jafco/Nomura Research, Iljin Holdings/Iljin Electric, Sakata/SIIX

Looking at consensus numbers, the majority of forward growth is coming from REA, not the stub ops. From a NAV viewpoint, News Corp is trading rich....

David Blennerhassett

StubWorld: Holdcos At 3 STD+

This week in StubWorld ... For a slight change of pace, I briefly touch on three Holdco structures - two at setup levels, one at an unwind level -...

David Blennerhassett

JAPAN BUYBACKS: ToSTNeT-3 Buybacks for 2/21/2017

Five Japanese companies announced ToSTNeT-3 Buybacks after the close of trading today: Temp Holdings Co Ltd (2181 JP) , Nishio Rent All Co Ltd...

Travis Lundy

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