Director, Head of Research, Smartkarma

Pranav Rao

Director, Head of Research

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

<ul>
<li>Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,000+ Insights published over the past two weeks on Smartkarma</li>
<li>In this cut, we review strategies to hedge <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba (9988 HK)</a> exposure, examine signficant Asian spin-offs, and explore engaging activist situations in Japan </li>
<li>Want to dig deeper? Comment or message with the themes you’d like to see highlighted next</li>
</ul>


Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,000+ Insights published over the past two weeks on Smartkarma
In this cut, we review strategies to hedge Alibaba (9988 HK) exposure, examine signficant Asian spin-offs, and explore engaging activist situations in Japan 
Want to dig deeper? Comment or message with the themes you’d like to see highlighted next


Curator's Cut: BABA Hedges, Substantive Spin-Offs & Japanese Activist Situations

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Trading in <a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563:1" rel="noopener">Sony Corp (6758 JP)</a> with <a href="https://www.smartkarma.com/entities/sony-financial-group-inc" target="_blank" data-smartkarma-citation="entities:564:1" rel="noopener">Sony Financial Group (8729 JP)</a> spin-off rights has passed. SFGI starts trading separately on 29 Sep. ¥150/share is good. ¥130-140/share is even better.</li>
<li>
<a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a>'s NAV is edging towards the low-end on a 12-month basis, However, the implied stub is out of whack as <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus NV (PRX NA)</a> outperforms.</li>
<li>The <a href="https://www.smartkarma.com/entities/shandong-hi-speed-holdings-gro" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">Shandong Hi-Speed Holdings (412 HK)</a> bubble has finally popped. Now what?</li>
</ul>


Trading in Sony Corp (6758 JP) with Sony Financial Group (8729 JP) spin-off rights has passed. SFGI starts trading separately on 29 Sep. ¥150/share is good. ¥130-140/share is even better.

Naspers (NPN SJ)'s NAV is edging towards the low-end on a 12-month basis, However, the implied stub is out of whack as Prosus NV (PRX NA) outperforms.
The Shandong Hi-Speed Holdings (412 HK) bubble has finally popped. Now what?


Last Week In Event SPACE: Sony Corp/Sony Financial, Naspers/Prosus, Shandong Hi-Speed, Shift Inc

Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

<ul>
<li>Sony Group Corporation (6758) is planning to spin off 80% of its stake in Sony Financial Group Inc. (8729) on September 29, 2025.</li>
<li>Sony Financial Group Inc. is the financial services arm of Sony, comprised of three main businesses</li>
<li>The spin-off will generate ~ ¥100BN in the current fiscal year and pay a ¥50BN annual dividend.</li>
</ul>


Sony Group Corporation (6758) is planning to spin off 80% of its stake in Sony Financial Group Inc. (8729) on September 29, 2025.
Sony Financial Group Inc. is the financial services arm of Sony, comprised of three main businesses
The spin-off will generate ~ ¥100BN in the current fiscal year and pay a ¥50BN annual dividend.


Sony Spin-off (Sony Financial Group) Spin-off Deep Dive

Travis Lundy

<ul>
<li>The <a href="https://www.smartkarma.com/entities/sony-financial-holdings-inc" target="_blank" data-smartkarma-citation="entities:564:1" rel="noopener">Sony Financial Holdings (8729 JP)</a> (now called Sony Financial Group Inc ("SFGI")) spinoff approaches. It will start trading 20 days from now.</li>
<li>Yesterday, the TSE confirmed approval (<a href="https://www.jpx.co.jp/english/listing/stocks/new/sjcobq000002509n-att/09SonyFinancialGroup-OutlineEN.pdf" target="_blank" rel="noopener">outline</a>, <a href="https://www.jpx.co.jp/english/listing/stocks/new/sjcobq000002509n-att/09SonyFinancialGroup-1s.pdf" target="_blank" rel="noopener">Securities Report</a> (J), <a href="https://www.jpx.co.jp/english/listing/stocks/new/sjcobq000002509n-att/09SonyFinancialGroup-cg.pdf" target="_blank" rel="noopener">Corporate Governance Report</a> (J). The company provided details of a possible ToSTNeT-3 buyback on Day 2 pre-open. That complicates things.</li>
<li>The introduction of that type of buyback flexibility indicates that supply overhang may be managed better than buyers would hope. Means other strategies may be necessary.</li>
</ul>


The Sony Financial Holdings (8729 JP) (now called Sony Financial Group Inc ("SFGI")) spinoff approaches. It will start trading 20 days from now.
Yesterday, the TSE confirmed approval (outline, Securities Report (J), Corporate Governance Report (J). The company provided details of a possible ToSTNeT-3 buyback on Day 2 pre-open. That complicates things.
The introduction of that type of buyback flexibility indicates that supply overhang may be managed better than buyers would hope. Means other strategies may be necessary.


[Japan Event/Buyback] The Sony Financial Spinoff - 'Maybe' BUYBACK Complicates Planning

<ul>
<li>Sony Financial Group (perhaps 8729 JP) will be spun off from SONY on 29 September 2025. The nominal share price will be "low" - likely 4-6% of Sony's price.</li>
<li>Index treatment is largely known with the exception of a market cap trigger to stay in or get the boot from one major global index provider's set of large-midcap indices.</li>
<li>There is a buyback to come which will offset global active manager "I don't want this" overhang. There are technical trades to do here too but overall I am positive.</li>
</ul>


Sony Financial Group (perhaps 8729 JP) will be spun off from SONY on 29 September 2025. The nominal share price will be "low" - likely 4-6% of Sony's price.
Index treatment is largely known with the exception of a market cap trigger to stay in or get the boot from one major global index provider's set of large-midcap indices.
There is a buyback to come which will offset global active manager "I don't want this" overhang. There are technical trades to do here too but overall I am positive.


[Quiddity Index] The Sony Financial Spinoff - What To Do?

Japan

Sony Financial Group Inc. provides insurance services. The Company offers life and non-life insurance, banking, and other financial services. Sony Financial Group serves customers across worldwide.

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Sony Financial Group (8729 JP)

Curator's Cut: BABA Hedges, Substantive Spin-Offs & Japanese Activist Situations

In this cut, we look at different approaches to hedge BABA exposure, review large recent spin-offs in Asia, and get a download of interesting...

Pranav Rao

Last Week In Event SPACE: Sony Corp/Sony Financial, Naspers/Prosus, Shandong Hi-Speed, Shift Inc

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...

David Blennerhassett

Sony Spin-off (Sony Financial Group) Spin-off Deep Dive

Sony Group Corporation (6758) is planning to spin off 80% of its stake in Sony Financial Group Inc. (8729) on September 29, 2025.

Richard Howe

[Japan Event/Buyback] The Sony Financial Spinoff - 'Maybe' BUYBACK Complicates Planning

SFGI (8729 JP) spinoff is now TSE-approved. Sony board approved last week. This is a go. Index impact mostly known. We wait on M. SFGI's TN-3 news...

Travis Lundy

[Quiddity Index] The Sony Financial Spinoff - What To Do?

The Sony Financial Spinoff approaches. On 29 September, SONY will spin off 80+% of SFGI shares to its own shareholders. Index treatment is mostly...

Travis Lundy

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