Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A year ago I wrote <a href="https://www.smartkarma.com/entities/sun-corp" target="_blank" data-smartkarma-citation="entities:10803:1" rel="noopener">Sun Corp (6736 JP)</a> was still/again cheap. Back then it traded at a 48% discount to the value of its shares in <a href="https://www.smartkarma.com/entities/cellebrite-di-ltd" target="_blank" data-smartkarma-citation="entities:37102:1" rel="noopener">Cellebrite DI (CLBT US)</a>. </li>
<li>It spent much of the last few months at a 25-35% discount. Last Tuesday it was a 25% discount. By Friday, it was a 1.2% discount after Cellebrite shares plummeted. </li>
<li>Sun Corp shares have reacted this morning but the discount is entirely too narrow. If you have the pair on, time to take it off. </li>
</ul>


A year ago I wrote Sun Corp (6736 JP) was still/again cheap. Back then it traded at a 48% discount to the value of its shares in Cellebrite DI (CLBT US). 
It spent much of the last few months at a 25-35% discount. Last Tuesday it was a 25% discount. By Friday, it was a 1.2% discount after Cellebrite shares plummeted. 
Sun Corp shares have reacted this morning but the discount is entirely too narrow. If you have the pair on, time to take it off. 


[Japan Activism] Sun Corp (6736 JP) - Not So Cheap Anymore

David Blennerhassett

<ul>
<li>Despite the recent pull-back, <a href="https://www.smartkarma.com/entities/sun-corp" target="_blank" data-smartkarma-citation="entities:10803:1" rel="noopener">Sun Corp (6736 JP)</a>'s implied stub, netting off 44.3%-held <a href="https://www.smartkarma.com/entities/cellebrite-di-ltd" target="_blank" data-smartkarma-citation="entities:37102:1" rel="noopener">Cellebrite DI (CLBT US)</a>, remains elevated.</li>
<li>Preceding my comments on Sun Corp are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


Despite the recent pull-back, Sun Corp (6736 JP)'s implied stub, netting off 44.3%-held Cellebrite DI (CLBT US), remains elevated.
Preceding my comments on Sun Corp are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Sun Corp (6736 JP) As A Value Play Is Less Apparent

<ul>
<li>You'd only want to be long <a href="https://www.smartkarma.com/entities/sun-corp" target="_blank" data-smartkarma-citation="entities:10803:1" rel="noopener">Sun Corp (6736 JP)</a> if you're very bullish <a href="https://www.smartkarma.com/entities/cellebrite-di-ltd" target="_blank" data-smartkarma-citation="entities:37102:1" rel="noopener">Cellebrite (CLBT US)</a>and some of the other businesses inside Sun Corp which aren't making money.</li>
<li>It's never ideal shorting rocket ships on the way up. Best to short on the way down. At some juncture, there will be a magnificent correction in <a href="https://www.smartkarma.com/entities/kioxia-holdings-corp" target="_blank" data-smartkarma-citation="entities:29243:1" rel="noopener">Kioxia (285A JP)</a>.</li>
<li>On balance, the optics in <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a> are looking attractive. </li>
</ul>


You'd only want to be long Sun Corp (6736 JP) if you're very bullish Cellebrite (CLBT US)and some of the other businesses inside Sun Corp which aren't making money.
It's never ideal shorting rocket ships on the way up. Best to short on the way down. At some juncture, there will be a magnificent correction in Kioxia (285A JP).
On balance, the optics in CK Hutchison Holdings (1 HK) are looking attractive. 


Last Week In Event SPACE: Sun Corp/Cellebrite, Kioxia, CK Hutchison, Toshiba/ROHM

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sun-corp" target="_blank" data-smartkarma-citation="entities:10803:1" rel="noopener">Sun Corp (6736 JP)</a> for years has been a play on its investment holding in <a href="https://www.smartkarma.com/entities/cellebrite-di-ltd" target="_blank" data-smartkarma-citation="entities:37102:1" rel="noopener">Cellebrite DI (CLBT US)</a>, brought to market in a $2.4bn SPAC deal announced 30Aug2021.  </li>
<li>The SPAC entity was an entity called TWC Tech Holdings II Corp (TWC = "True Wind Capital"). The next day, <a href="https://www.smartkarma.com/entities/cellebrite-di-ltd" target="_blank" data-smartkarma-citation="entities:37102:1" rel="noopener">Cellebrite DI (CLBT US)</a> was born, trading up to US$11.00+.</li>
<li>
<a href="https://www.smartkarma.com/entities/sun-corp" target="_blank" data-smartkarma-citation="entities:10803:1" rel="noopener">Sun Corp (6736 JP)</a>'s value realisation path had begun. Today, a True Winds entity announced a Partial Tender Offer - unsolicited, unannounced previously - on Sun Corp, for 19.0%.</li>
</ul>



Sun Corp (6736 JP) for years has been a play on its investment holding in Cellebrite DI (CLBT US), brought to market in a $2.4bn SPAC deal announced 30Aug2021.  
The SPAC entity was an entity called TWC Tech Holdings II Corp (TWC = "True Wind Capital"). The next day, Cellebrite DI (CLBT US) was born, trading up to US$11.00+.

Sun Corp (6736 JP)'s value realisation path had begun. Today, a True Winds entity announced a Partial Tender Offer - unsolicited, unannounced previously - on Sun Corp, for 19.0%.


Unsolicited Partial Offer for 19% of Sun Corp (6736 JP) - Play on Cellebrite from SPAC Sponsor

<ul>
<li>Today after the close, Value Act reported that it owned 7.87% of shares outstanding in <a href="https://www.smartkarma.com/entities/sun-corp" target="_blank" data-smartkarma-citation="entities:10803:1" rel="noopener">Sun Corp (6736 JP)</a> and it may make proposals to management. </li>
<li>This has been trading cheaply (and I pointed it out on <a href="https://www.smartkarma.com/insights/sun-corp-6736-clbt-has-round-tripped-but-now-better-parentco-and-a-buyback-so-set-up-is-better" target="_blank" rel="noopener">13 Aug</a> and <a href="https://www.smartkarma.com/insights/sun-corp-6736-clbt-has-round-tripped-but-now-better-parentco-and-a-buyback-so-set-up-is-better" target="_blank" rel="noopener">12 Sep</a>). Cellebrite DI (CLBT US) is up 35% in those 8 weeks. Sun Corp +50%.</li>
<li>ValueAct had owned 4.9+% for at least a few months before, but now it has gone public. They were likely in already under a different name in March, now public.</li>
</ul>


Today after the close, Value Act reported that it owned 7.87% of shares outstanding in Sun Corp (6736 JP) and it may make proposals to management. 
This has been trading cheaply (and I pointed it out on 13 Aug and 12 Sep). Cellebrite DI (CLBT US) is up 35% in those 8 weeks. Sun Corp +50%.
ValueAct had owned 4.9+% for at least a few months before, but now it has gone public. They were likely in already under a different name in March, now public.


[Japan Activism] Sun Corp (6736) Gets ANOTHER Public Activist - ValueAct Reports 7.9%

Japan

SUN CORPORATION operates mainly Pachinko related business, information and communication business.  Pachinko related business includes developing, manufacturing and selling a system to control and monitor pachinko machine, and manage business operation.  Sun Corp. also manufactures Pachinko and household appliances and develops game software for family use.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sun Corp (6736 JP)

[Japan Activism] Sun Corp (6736 JP) - Not So Cheap Anymore

Sun Corp saw its discount to CLBT holdings widen from 1.2% when I wrote to 23% in about 8 days. Then it started narrowing again. The company...

Travis Lundy

StubWorld: Sun Corp (6736 JP) As A Value Play Is Less Apparent

Sun Corp as a value play is less clear here. I'd look to reverse the stub if the discount to the CLBT holding dips to mid-teens. But not...

David Blennerhassett

Last Week In Event SPACE: Sun Corp/Cellebrite, Kioxia, CK Hutchison, Toshiba/ROHM

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

[Japan Activism] Sun Corp (6736) Gets ANOTHER Public Activist - ValueAct Reports 7.9%

ValueAct has now officially joined the register of SunCorp at 7.87% bringing total ownership by Oasis, TrueWind, and ValueAct to 48.40% as of a...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Japan Activism] Sun Corp (6736 JP) - Not So Cheap Anymore

Sun Corp saw its discount to CLBT holdings widen from 1.2% when I wrote to 23% in about 8 days. Then it started narrowing again. The company...

Travis Lundy

StubWorld: Sun Corp (6736 JP) As A Value Play Is Less Apparent

Sun Corp as a value play is less clear here. I'd look to reverse the stub if the discount to the CLBT holding dips to mid-teens. But not...

David Blennerhassett

Last Week In Event SPACE: Sun Corp/Cellebrite, Kioxia, CK Hutchison, Toshiba/ROHM

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

Unsolicited Partial Offer for 19% of Sun Corp (6736 JP) - Play on Cellebrite from SPAC Sponsor

Sun Corp - long an illiquid activist/RV darling - now has a new suitor. The PE fund which sponsored the Cellebrite SPAC is bidding for 19.0%....

Travis Lundy

[Japan Activism] Sun Corp (6736) Gets ANOTHER Public Activist - ValueAct Reports 7.9%

ValueAct has now officially joined the register of SunCorp at 7.87% bringing total ownership by Oasis, TrueWind, and ValueAct to 48.40% as of a...

Travis Lundy