Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In April I wrote about <a href="https://www.smartkarma.com/entities/sun-corp" target="_blank" data-smartkarma-citation="entities:10803:1" rel="noopener">Sun Corp (6736 JP)</a>. Activists had bought more and the stock was trading at the value of its CLBT holdings. Then it widened sharply. </li>
<li>The discount widened out to 30% in June and July, but jumped when CLBT shares tanked four weeks ago on reduced guidance and a possibly sudden CEO change. </li>
<li>Then CLBT bounced and fell while Sun Corp continues to rally. That puts Sun Corp at 10+% through its CLBT holdings value. But there are possibly other things afoot.
</li>
</ul>


In April I wrote about Sun Corp (6736 JP). Activists had bought more and the stock was trading at the value of its CLBT holdings. Then it widened sharply. 
The discount widened out to 30% in June and July, but jumped when CLBT shares tanked four weeks ago on reduced guidance and a possibly sudden CEO change. 
Then CLBT bounced and fell while Sun Corp continues to rally. That puts Sun Corp at 10+% through its CLBT holdings value. But there are possibly other things afoot.



[Japan Activism] Sun Corp (6736 JP) - Bulled Up to New Highs Vs CLBT

Director, Head of Research, Smartkarma

Pranav Rao

Director, Head of Research

Smartkarma

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<ul>
<li>Welcome to Curator’s Cut - a fortnightly roundup of standout themes from the 1,600+ insights shared on Smartkarma.</li>
<li>In this cut, we go looking for value in Korea beyond memory, weigh SHEIN's long-awaited IPO, and trace how TOPIX's reshuffle could lift small-cap Japanese banks.</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 1,600+ insights shared on Smartkarma.
In this cut, we go looking for value in Korea beyond memory, weigh SHEIN's long-awaited IPO, and trace how TOPIX's reshuffle could lift small-cap Japanese banks.
Want to dig deeper? Comment or message with the themes you'd like to see highlighted next.


Curator's Cut: Korea Beyond Memory, SHEIN's Hong Kong Bow & TOPIX's Tailwind for Banks

<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>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

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.

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Sun Corp (6736 JP)

[Japan Activism] Sun Corp (6736 JP) - Bulled Up to New Highs Vs CLBT

Sun Corp is trading at a big premium to its holdings in Cellebrite. It traded this high on the CLBT a month ago, briefly. This is different. Max...

Travis Lundy

Curator's Cut: Korea Beyond Memory, SHEIN's Hong Kong Bow & TOPIX's Tailwind for Banks

Discover names outside memory in Korea, review SHEIN's IPO, and understand TOPIX's impact on small-cap Japanese banks in this fortnightly...

Pranav Rao

[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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Japan Activism] Sun Corp (6736 JP) - Bulled Up to New Highs Vs CLBT

Sun Corp is trading at a big premium to its holdings in Cellebrite. It traded this high on the CLBT a month ago, briefly. This is different. Max...

Travis Lundy

Curator's Cut: Korea Beyond Memory, SHEIN's Hong Kong Bow & TOPIX's Tailwind for Banks

​Discover names outside memory in Korea, review SHEIN's IPO, and understand TOPIX's impact on small-cap Japanese banks in this fortnightly...

Pranav Rao

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 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

Discover names outside memory in Korea, review SHEIN's IPO, and understand TOPIX's impact on small-cap Japanese banks in this fortnightly...