Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Ngern Tid Lor (NTL), a financial service provider based in Thailand, aims to raise around US$1bn via selling a mix of primary and secondary shares in its Thailand IPO. Prior to listing, it was jointly owned by Bank of Ayudhya and CVC Capital Partners. As per Oliver Wyman’s estimates, NTL had a 16% market share in the vehicle lending market in Thailand, as of 2019. NTL provides hire purchase loans for motorcycles and cars, along with new and used trucks. It also provides insurance brokerage services through its branches for non-life and life insurance. It offers motor insurance, compulsory motor insurance, personal accident insurance, cancer insurance, and loan insurance. As of Dec 2020, it had over 730,000 accounts with total outstanding loans of THB51.3bn. In 2020, it generated non-life insurance premium sales of THB4bn. Over 2016-20, NTL’s gross loans grew at 25.1% CAGR, averaging 25%+ per annum over 2017-19 before slowing down to 7% YoY growth in 2020. Its total income has grown at 22.5% CAGR, while PAT did better with a CAGR of 29.1% over 2016-20. Although, asset quality has taken a hit owing to COVID-19 and Bank of Thailand's induced moratorium. We have covered various aspects of the deal in our earlier note, <a href="https://www.smartkarma.com/insights/ngern-tid-lor-pre-ipo-pre-covid-growth-track-record-has-been-very-strong" target="_blank" rel="noopener">Ngern Tid Lor Pre-IPO - Pre-COVID growth track record has been very strong</a>. In this note we’ll undertake a peer comparison.

Ngern Tid Lor (NTL), a financial service provider based in Thailand, aims to raise around US$1bn via selling a mix of primary and secondary shares in its Thailand IPO. Prior to listing, it was jointly owned by Bank of Ayudhya and CVC Capital Partners. As per Oliver Wyman’s estimates, NTL had a 16% market share in the vehicle lending market in Thailand, as of 2019. NTL provides hire purchase loans for motorcycles and cars, along with new and used trucks. It also provides insurance brokerage services through its branches for non-life and life insurance. It offers motor insurance, compulsory motor insurance, personal accident insurance, cancer insurance, and loan insurance. As of Dec 2020, it had over 730,000 accounts with total outstanding loans of THB51.3bn. In 2020, it generated non-life insurance premium sales of THB4bn. Over 2016-20, NTL’s gross loans grew at 25.1% CAGR, averaging 25%+ per annum over 2017-19 before slowing down to 7% YoY growth in 2020. Its total income has grown at 22.5% CAGR, while PAT did better with a CAGR of 29.1% over 2016-20. Although, asset quality has taken a hit owing to COVID-19 and Bank of Thailand's induced moratorium. We have covered various aspects of the deal in our earlier note, Ngern Tid Lor Pre-IPO - Pre-COVID growth track record has been very strong. In this note we’ll undertake a peer comparison.

Ngern Tid Lor Pre-IPO - Peer Comparison - Playing Catch up After Being Left Behind

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

This morning, <a href="https://www.smartkarma.com/entities/sawada-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:7311:1" rel="noopener">Sawada Holdings (8699 JP)</a> made an <a href="http://www.sawada-holdings.co.jp/wp/wp-content/uploads/2021/03/shdpress20210308.pdf" target="_blank" rel="noopener">announcement</a> (Japanese only) that its main operating entity, its 60%-held Mongolian Bank operating subsidiary Kahn Bank LLC had received a notice from the Mongolian Central Bank. The notice had three main points, that... <ol>
<li>the voting rights and dividend rights of "qualifying shareholders who became so without pre-approval from the Mongolian Central Bank might be suspended if shares sold by 30 June 2021 (with some technical detail in this portion).</li>
<li>That changes in the number of shares held, and the fact that they are held, by qualifying and/or eligible shareholders must be pre-approved by the Mongolian Central Bank. </li>
<li>That Sawada Holdings must identify the natural person behind its own shareholdings by 30 June 2021. </li>
</ol>The amendments to the Mongolian Banking Law discussed in <a href="https://www.smartkarma.com/insights/sawada-holdings-change-of-paradigm-means-opportunity" target="_blank" data-smartkarma-citation="insights:47739" rel="noopener">Sawada Holdings - Change of Paradigm Means Opportunity</a> a month ago are one thing. This appears to possibly put further constraints on how Sawada Holdings might deal with the situation going forward. The shares fell immediately on the news, but there is considerable detail which still needs to be sorted out.

This morning, Sawada Holdings (8699 JP) made an announcement (Japanese only) that its main operating entity, its 60%-held Mongolian Bank operating subsidiary Kahn Bank LLC had received a notice from the Mongolian Central Bank. The notice had three main points, that... 
the voting rights and dividend rights of "qualifying shareholders who became so without pre-approval from the Mongolian Central Bank might be suspended if shares sold by 30 June 2021 (with some technical detail in this portion).
That changes in the number of shares held, and the fact that they are held, by qualifying and/or eligible shareholders must be pre-approved by the Mongolian Central Bank. 
That Sawada Holdings must identify the natural person behind its own shareholdings by 30 June 2021. 
The amendments to the Mongolian Banking Law discussed in Sawada Holdings - Change of Paradigm Means Opportunity a month ago are one thing. This appears to possibly put further constraints on how Sawada Holdings might deal with the situation going forward. The shares fell immediately on the news, but there is considerable detail which still needs to be sorted out. 

Sawada (8699 JP) Stuck Between Mongolian Central Bank Idealism and Reality

Back almost a year ago, in the third week of February 2020, there was a very brief announcement by an entity called ウプシロン投資事業有限責任組合 or Upsilon Investment Limited Partnership which itself is an entity of <a href="http://www.metacapital.co.jp/index.html" target="_blank" rel="noopener">META Capital</a> which is an investment firm owned by two former Japanese fixed income people who worked at foreign brokers in the early noughties (who share 75% ownership) and Idei Nobuyuki, former CEO of Sony (now 83yrs old), who owns 25%.<div>The announcement was that the entity was launching a Tender Offer to buy 50.1% of <a href="https://www.smartkarma.com/entities/sawada-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:7311:1" rel="noopener">Sawada Holdings (8699 JP)</a> which is the former HIS Securities, which was before that HS Securities (renamed after Hideo Sawada, the entrepreneur and mover and shaker behind HIS Travel (now <a href="https://www.smartkarma.com/entities/h-i-s-co-ltd" target="_blank" data-smartkarma-citation="entities:19311:1" rel="noopener">H I S Co Ltd (9603 JP)</a>) purchased it closed to 20 years ago). The announcement said simply that it was launching a Tender Offer to start on 20 February 2020, ending on 19 March 2020 (a 20 day period - the minimum). Sawada Holdings followed up the next morning with an <a href="http://www.sawada-holdings.co.jp/wp/wp-content/uploads/2020/02/shdpress20200220_2.pdf" target="_blank" rel="noopener">announcement</a> containing the Upsilon announcement. </div><div>
The Tender was to buy 19,859,758 shares. Hideo Sawada owns 10,628,000 shares, or 26.81%. A company affiliated with him called 秀インター owns 1,100,000 shares or 2.77%. Together, those two entities with 11,728,000 shares (29.58%) have agreed to tender. That got Upsilon almost 60% of the way towards their Tender Offer. Another entity which looked reasonably related to Sawada-san and his history owned another 15% and other shareholders who had been selling owned enough to get Upsilon over the minimum hurdle. So the timeframe was to get it done quickly. 
Then the Central Bank of Mongolia said Upsilon had not asked for its approval, which they asserted as necessary, given that it would involve a change in control in one of Mongolia's largest banks, Khan Bank LLC, in which <a href="https://www.smartkarma.com/entities/sawada-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:7311:1" rel="noopener">Sawada Holdings (8699 JP)</a> owned 60%, and which represents 90+% of Sawada Holdings' earnings and assets over the years. 
The erstwhile bidders and Sawada Holdings went back and forth with the Central Bank of Mongolia and it took them until the 28th of January 2021 to confirm that the Mongolian Central Bank had accepted the document submission required.
The Tender Offer has now been extended through 10 February, and IF the Mongolian Central Bank approves promptly, it could actually end then. I have my doubts, but if the Mongolian Central Bank approves, I expect it would require an amendment to the Tender Offer filing, which would necessitate extending once again. 
<h3>HOWEVER...</h3>
On 28 January, a plenary session of Parliament discussed and approved a draft bill amendment to the Banking Law. 
And this could change everything.
More below the fold.
<hr>
The history of this event is in the insights below:<a href="https://www.smartkarma.com/insights/sawada-holdings-partial-offer-arb-grids-pro-ration" target="_blank" data-smartkarma-citation="insights:37141" rel="noopener"></a>  <a href="https://www.smartkarma.com/insights/sawada-holdings-partial-tender-an-odd-duck" target="_blank" data-smartkarma-citation="insights:36802" rel="noopener">Sawada Holdings Partial Tender - An Odd Duck</a>  <a href="https://www.smartkarma.com/insights/sawada-holdings-partial-offer-arb-grids-pro-ration" target="_blank" data-smartkarma-citation="insights:37141" rel="noopener">Sawada Holdings Partial Offer - Arb Grids &amp; Pro-Ration</a> <a href="https://www.smartkarma.com/insights/sawada-withholds-opinion-on-tob-mongolia-deal-risk-may-exist" target="_blank" data-smartkarma-citation="insights:36959" rel="noopener">Sawada Withholds Opinion on TOB - Mongolia Deal Risk May Exist</a> <a href="https://www.smartkarma.com/insights/sawada-holdings-tender-holding-pattern" target="_blank" data-smartkarma-citation="insights:37764" rel="noopener">Sawada Holdings Tender Holding Pattern</a>  <a href="https://www.smartkarma.com/insights/sawada-holdings-partial-offer-update-it-s-a-buy-here" target="_blank" data-smartkarma-citation="insights:37345" rel="noopener">Sawada Holdings Partial Offer Update - It's a Buy Here</a>  <a href="https://www.smartkarma.com/insights/sawada-holdings-8699-partial-tender-delayed-again-13th-time-a-charm" target="_blank" data-smartkarma-citation="insights:42124" rel="noopener">Sawada Holdings (8699) Partial Tender. Delayed Again. 13th Time a Charm?</a>  <a href="https://www.smartkarma.com/insights/sawada-holdings-still-a-long-but" target="_blank" data-smartkarma-citation="insights:43548" rel="noopener">Sawada Holdings - Still A Long But...</a>  
</div>

Back almost a year ago, in the third week of February 2020, there was a very brief announcement by an entity called ウプシロン投資事業有限責任組合 or Upsilon Investment Limited Partnership which itself is an entity of META Capital which is an investment firm owned by two former Japanese fixed income people who worked at foreign brokers in the early noughties (who share 75% ownership) and Idei Nobuyuki, former CEO of Sony (now 83yrs old), who owns 25%.The announcement was that the entity was launching a Tender Offer to buy 50.1% of Sawada Holdings (8699 JP) which is the former HIS Securities, which was before that HS Securities (renamed after Hideo Sawada, the entrepreneur and mover and shaker behind HIS Travel (now H I S Co Ltd (9603 JP)) purchased it closed to 20 years ago). The announcement said simply that it was launching a Tender Offer to start on 20 February 2020, ending on 19 March 2020 (a 20 day period - the minimum). Sawada Holdings followed up the next morning with an announcement containing the Upsilon announcement. 
The Tender was to buy 19,859,758 shares. Hideo Sawada owns 10,628,000 shares, or 26.81%. A company affiliated with him called 秀インター owns 1,100,000 shares or 2.77%. Together, those two entities with 11,728,000 shares (29.58%) have agreed to tender. That got Upsilon almost 60% of the way towards their Tender Offer. Another entity which looked reasonably related to Sawada-san and his history owned another 15% and other shareholders who had been selling owned enough to get Upsilon over the minimum hurdle. So the timeframe was to get it done quickly. 
Then the Central Bank of Mongolia said Upsilon had not asked for its approval, which they asserted as necessary, given that it would involve a change in control in one of Mongolia's largest banks, Khan Bank LLC, in which Sawada Holdings (8699 JP) owned 60%, and which represents 90+% of Sawada Holdings' earnings and assets over the years. 
The erstwhile bidders and Sawada Holdings went back and forth with the Central Bank of Mongolia and it took them until the 28th of January 2021 to confirm that the Mongolian Central Bank had accepted the document submission required.
The Tender Offer has now been extended through 10 February, and IF the Mongolian Central Bank approves promptly, it could actually end then. I have my doubts, but if the Mongolian Central Bank approves, I expect it would require an amendment to the Tender Offer filing, which would necessitate extending once again. 
HOWEVER...
On 28 January, a plenary session of Parliament discussed and approved a draft bill amendment to the Banking Law. 
And this could change everything.
More below the fold.

The history of this event is in the insights below:  Sawada Holdings Partial Tender - An Odd Duck  Sawada Holdings Partial Offer - Arb Grids &amp; Pro-Ration Sawada Withholds Opinion on TOB - Mongolia Deal Risk May Exist Sawada Holdings Tender Holding Pattern  Sawada Holdings Partial Offer Update - It's a Buy Here  Sawada Holdings (8699) Partial Tender. Delayed Again. 13th Time a Charm?  Sawada Holdings - Still A Long But...   


Sawada Holdings - Change of Paradigm Means Opportunity

In my last insight on <a href="https://www.smartkarma.com/entities/sawada-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:7311:1" rel="noopener">Sawada Holdings (8699 JP)</a> I wondered whether the 13th time was charmed. That was just after the Meta Capital partial Tender Offer for Sawada Holdings had been extended a 13th time. Spoiler. It wasn't. Since then it has been extended three more times, with <a href="https://disclosure.edinet-fsa.go.jp/E01EW/BLMainController.jsp?uji.verb=W00Z1020initialize&amp;uji.bean=ek.bean.EKW00Z1020Bean&amp;TID=W00Z1020&amp;PID=W1E63041&amp;SESSIONKEY=1600894852849&amp;lgKbn=2&amp;dflg=0&amp;iflg=null&amp;row=100&amp;idx=0&amp;str=&amp;kbn=1&amp;flg=&amp;syoruiKanriNo=S100JQCR" target="_blank" rel="noopener">the most recent extension</a> coming on the 18th of September. The Tender Offer is, after 16 extensions, currently set to close on 6 October (153 business days).The most recent extension notes that a few days prior, Khan Bank had received a notice from the Central Bank of Mongolia saying that the Tender Offeror had not submitted sufficient information for the Central Bank to grant "pre-approval." That statement noted that when the Acquirer had been asked on 11 August to submit additional information in the most recent filing, they had not submitted all the information which was requested. That led to an expedited effort to supply the additional information but when the most recent missive of 15 September arrived, the Tender Offeror has now decided that pre-approval may not be obtained.The Offeror is now studying what measures they should take in light of this situation. They seem not to have a direct line into the Bank of Mongolia, which is strange after all these months.It seems un-professional at best and they seem to have dug themselves into a hole. <h2>The NEW News</h2>The NEW News is that Sawada Holdings itself has finally issued a press release with an opinion statement regarding the Tender Offer. As a reminder, on the 26th of February, then again on the 16th of March 2020, Sawada Holdings Board decided to withhold its opinion on the Tender Offer pending some kind of resolution on the Tender Offer and its required approvals.SEVEN MONTHS LATER WE HAVE AN OPINION STATEMENT.<div class="content-highlight">
The Target Company has come out to say that the believe that the Tender Offeror will be unable to obtain prior approval from the Central Bank of Mongolia to acquire the shares of Sawada Holdings in a Tender Offer and control a significant stake in Khan Bank LLC. Sawada Holdings' Board has come out AGAINST the Tender Offer. 
Oops. 
</div>Sawada has, once again, thoroughly thrown the Acquirers under the bus. This, however, makes the Tender Offer more difficult to get done because of who agreed to tender and whose name is on the door.More below the fold.<hr><table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 725px;"><h3>Previous Insights in the Series</h3></td></tr>
<tr>
<td style="width: 120px;">Date</td>
<td style="width: 583.75px;">Title</td>
</tr>
<tr>
<td style="width: 120px;">20 February 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-holdings-partial-tender-an-odd-duck" target="_blank" data-smartkarma-citation="insights:36802" rel="noopener">Sawada Holdings Partial Tender - An Odd Duck</a> </td>
</tr>
<tr>
<td style="width: 120px;">26 February 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-holdings-partial-offer-arb-grids-pro-ration" target="_blank" data-smartkarma-citation="insights:37141" rel="noopener">Sawada Holdings Partial Offer - Arb Grids &amp; Pro-Ration</a> </td>
</tr>
<tr>
<td style="width: 120px;">3 March 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-withholds-opinion-on-tob-mongolia-deal-risk-may-exist" target="_blank" data-smartkarma-citation="insights:36959" rel="noopener">Sawada Withholds Opinion on TOB - Mongolia Deal Risk May Exist</a> </td>
</tr>
<tr>
<td style="width: 120px;">10 March 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-holdings-partial-offer-update-it-s-a-buy-here" target="_blank" data-smartkarma-citation="insights:37345" rel="noopener">Sawada Holdings Partial Offer Update - It's a Buy Here</a> </td>
</tr>
<tr>
<td style="width: 120px;">24 March 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-holdings-tender-holding-pattern" target="_blank" data-smartkarma-citation="insights:37764" rel="noopener">Sawada Holdings Tender Holding Pattern</a> </td>
</tr>
<tr>
<td style="width: 120px;">13 August 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-holdings-8699-partial-tender-delayed-again-13th-time-a-charm" target="_blank" data-smartkarma-citation="insights:42124" rel="noopener">Sawada Holdings (8699) Partial Tender. Delayed Again. 13th Time a Charm?</a> </td>
</tr>
</tbody></table>

In my last insight on Sawada Holdings (8699 JP) I wondered whether the 13th time was charmed. That was just after the Meta Capital partial Tender Offer for Sawada Holdings had been extended a 13th time. Spoiler. It wasn't. Since then it has been extended three more times, with the most recent extension coming on the 18th of September. The Tender Offer is, after 16 extensions, currently set to close on 6 October (153 business days).The most recent extension notes that a few days prior, Khan Bank had received a notice from the Central Bank of Mongolia saying that the Tender Offeror had not submitted sufficient information for the Central Bank to grant "pre-approval." That statement noted that when the Acquirer had been asked on 11 August to submit additional information in the most recent filing, they had not submitted all the information which was requested. That led to an expedited effort to supply the additional information but when the most recent missive of 15 September arrived, the Tender Offeror has now decided that pre-approval may not be obtained.The Offeror is now studying what measures they should take in light of this situation. They seem not to have a direct line into the Bank of Mongolia, which is strange after all these months.It seems un-professional at best and they seem to have dug themselves into a hole. The NEW NewsThe NEW News is that Sawada Holdings itself has finally issued a press release with an opinion statement regarding the Tender Offer. As a reminder, on the 26th of February, then again on the 16th of March 2020, Sawada Holdings Board decided to withhold its opinion on the Tender Offer pending some kind of resolution on the Tender Offer and its required approvals.SEVEN MONTHS LATER WE HAVE AN OPINION STATEMENT.
The Target Company has come out to say that the believe that the Tender Offeror will be unable to obtain prior approval from the Central Bank of Mongolia to acquire the shares of Sawada Holdings in a Tender Offer and control a significant stake in Khan Bank LLC. Sawada Holdings' Board has come out AGAINST the Tender Offer. 
Oops. 
Sawada has, once again, thoroughly thrown the Acquirers under the bus. This, however, makes the Tender Offer more difficult to get done because of who agreed to tender and whose name is on the door.More below the fold.
Previous Insights in the Series

Date
Title


20 February 2020

Sawada Holdings Partial Tender - An Odd Duck 


26 February 2020

Sawada Holdings Partial Offer - Arb Grids &amp; Pro-Ration 


3 March 2020

Sawada Withholds Opinion on TOB - Mongolia Deal Risk May Exist 


10 March 2020

Sawada Holdings Partial Offer Update - It's a Buy Here 


24 March 2020

Sawada Holdings Tender Holding Pattern 


13 August 2020

Sawada Holdings (8699) Partial Tender. Delayed Again. 13th Time a Charm? 



The current <a href="https://www.smartkarma.com/entities/sawada-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:7311:1" rel="noopener">Sawada Holdings (8699 JP)</a> Partial Tender Offer is the longest-lasting Partial Tender Offer that I have ever seen in Japan. The Tender Offer by Upsilon Investment Limited Partnership to buy just over 50% was announced with the briefest of intros on 19 February 2020, launched on 20 February with the expected end date of 24 March, and as of yesterday had been extended 11 times, and was scheduled to close tomorrow 13 August after having been extended by 95 business days in the interim. Surprise surprise. Today Upsilon <a href="https://disclosure.edinet-fsa.go.jp/E01EW/BLMainController.jsp?uji.verb=W00Z1020initialize&amp;uji.bean=ek.bean.EKW00Z1020Bean&amp;TID=W00Z1020&amp;PID=W1E63041&amp;SESSIONKEY=1597222971812&amp;lgKbn=2&amp;dflg=0&amp;iflg=null&amp;row=100&amp;idx=0&amp;str=&amp;kbn=1&amp;flg=&amp;syoruiKanriNo=S100JIBX" target="_blank" rel="noopener">extended it a 12th time</a>. This time until 26 August 2020. Based on the content of the update and extension, I am guessing for the moment that won't be the last time. In this case, the Bidder asked Khan Bank to disclose what it could among the Bank of Mongolia's demands, and sent that to the Mongolian central bank. New this time is that the Tender Offeror has asked the Central Bank of Mongolia to make its decision about approval and pre-approval as soon as possible. The price has fallen from recent highs, and the Khan Bank has released its numbers for Q2 recently as did Sawada as a whole (EPS ¥10.8 for the quarter, down 75+% yoy, but positive), so the situation is again worth a look.More below the fold. <hr><table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 725px;"><h3>Previous Insights in the Series</h3></td></tr>
<tr>
<td style="width: 120px;">Date</td>
<td style="width: 583.75px;">Title</td>
</tr>
<tr>
<td style="width: 120px;">20 February 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-holdings-partial-tender-an-odd-duck" target="_blank" data-smartkarma-citation="insights:36802" rel="noopener">Sawada Holdings Partial Tender - An Odd Duck</a> </td>
</tr>
<tr>
<td style="width: 120px;">26 February 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-holdings-partial-offer-arb-grids-pro-ration" target="_blank" data-smartkarma-citation="insights:37141" rel="noopener">Sawada Holdings Partial Offer - Arb Grids &amp; Pro-Ration</a> </td>
</tr>
<tr>
<td style="width: 120px;">3 March 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-withholds-opinion-on-tob-mongolia-deal-risk-may-exist" target="_blank" data-smartkarma-citation="insights:36959" rel="noopener">Sawada Withholds Opinion on TOB - Mongolia Deal Risk May Exist</a> </td>
</tr>
<tr>
<td style="width: 120px;">10 March 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-holdings-partial-offer-update-it-s-a-buy-here" target="_blank" data-smartkarma-citation="insights:37345" rel="noopener">Sawada Holdings Partial Offer Update - It's a Buy Here</a> </td>
</tr>
<tr>
<td style="width: 120px;">24 March 2020</td>
<td style="width: 583.75px;">
<a href="https://www.smartkarma.com/insights/sawada-holdings-tender-holding-pattern" target="_blank" data-smartkarma-citation="insights:37764" rel="noopener">Sawada Holdings Tender Holding Pattern</a> </td>
</tr>
</tbody></table>

The current Sawada Holdings (8699 JP) Partial Tender Offer is the longest-lasting Partial Tender Offer that I have ever seen in Japan. The Tender Offer by Upsilon Investment Limited Partnership to buy just over 50% was announced with the briefest of intros on 19 February 2020, launched on 20 February with the expected end date of 24 March, and as of yesterday had been extended 11 times, and was scheduled to close tomorrow 13 August after having been extended by 95 business days in the interim. Surprise surprise. Today Upsilon extended it a 12th time. This time until 26 August 2020. Based on the content of the update and extension, I am guessing for the moment that won't be the last time. In this case, the Bidder asked Khan Bank to disclose what it could among the Bank of Mongolia's demands, and sent that to the Mongolian central bank. New this time is that the Tender Offeror has asked the Central Bank of Mongolia to make its decision about approval and pre-approval as soon as possible. The price has fallen from recent highs, and the Khan Bank has released its numbers for Q2 recently as did Sawada as a whole (EPS ¥10.8 for the quarter, down 75+% yoy, but positive), so the situation is again worth a look.More below the fold. 
Previous Insights in the Series

Date
Title


20 February 2020

Sawada Holdings Partial Tender - An Odd Duck 


26 February 2020

Sawada Holdings Partial Offer - Arb Grids &amp; Pro-Ration 


3 March 2020

Sawada Withholds Opinion on TOB - Mongolia Deal Risk May Exist 


10 March 2020

Sawada Holdings Partial Offer Update - It's a Buy Here 


24 March 2020

Sawada Holdings Tender Holding Pattern 



Sawada Holdings (8699) Partial Tender. Delayed Again. 13th Time a Charm?

Japan

HS Holdings Co., Ltd. offers banking services. The Company provides deposits, loans, domestic settlement, fund management, and other services. HS Holdings also offers securities dealing, securities brokerage, securities underwriting, and other services.

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HS Holdings (8699 JP)

Ngern Tid Lor Pre-IPO - Peer Comparison - Playing Catch up After Being Left Behind

Ngern Tid Lor aims to raise around US$1bn via selling a mix of primary and secondary shares in its Thailand IPO. Prior to listing, it was jointly...

Sumeet Singh

Sawada (8699 JP) Stuck Between Mongolian Central Bank Idealism and Reality

Sawada Holdings (8699 JP) today told shareholders of a new notice from the Mongolian CB. It may impact Sawada's rights in Khan, and may require...

Travis Lundy

Sawada Holdings - Change of Paradigm Means Opportunity

The Partial Tender Offer for Sawada Holdings has been delayeda year. Now we appear to be past one hurdle but faced with another which changes the...

Travis Lundy

Sawada Holdings - Still A Long But...

In my last insight on Sawada Holdings (8699 JP)

Travis Lundy

Sawada Holdings (8699) Partial Tender. Delayed Again. 13th Time a Charm?

The current Sawada Holdings (8699 JP) Partial Tender Offer is the longest-lasting Partial Tender Offer that I have ever seen in Japan. The Tender...

Travis Lundy

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