Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In August, <a href="https://www.smartkarma.com/entities/t-k-toka-co-ltd" target="_blank" data-smartkarma-citation="entities:18678:1" rel="noopener">T&amp;K Toka Co Ltd (4636 JP)</a> announced a TOB by Bain with a clearance hurdle of selling a 3.51% stake in Hangzhou Toka Ink (SH:688571) before launch.</li>
<li>Friday, the company <a href="https://www.tk-toka.co.jp/ir/detail/files/2023112401.pdf" target="_blank" rel="noopener">announced</a> that they put up a 3.6% stake for auction, with the sale to be executed that day. That likely triggers an early launch of the TOB.</li>
<li>The TOB Price is offensively cheap at 0.63x "official" book, and 0.53x book adjusted for equity affiliate price. The shares have traded through terms since launch. This should get bumped.</li>
</ul>


In August, T&amp;K Toka Co Ltd (4636 JP) announced a TOB by Bain with a clearance hurdle of selling a 3.51% stake in Hangzhou Toka Ink (SH:688571) before launch.
Friday, the company announced that they put up a 3.6% stake for auction, with the sale to be executed that day. That likely triggers an early launch of the TOB.
The TOB Price is offensively cheap at 0.63x "official" book, and 0.53x book adjusted for equity affiliate price. The shares have traded through terms since launch. This should get bumped.


T&K TOKA (4636 JP): Imminent TOB Launch? Imminent Bump Needed?

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/t-k-toka-co-ltd" target="_blank" data-smartkarma-citation="entities:18678:1" rel="noopener">T&amp;K Toka Co Ltd (4636 JP)</a> has satisfied the precondition of selling its Hangzhou Toka Ink stake to hold less than 30%. The offer is targeted for early January.</li>
<li>Due to Dalton's stake building, the shares have consistently traded above Bain’s pre-conditional JPY1,400 offer. Bain can either launch the tender with unchanged terms or bump the offer.</li>
<li>A bump is likely as, despite the irrevocables, satisfying the minimum acceptance condition is challenging. The Board will struggle to recommend the offer if the shares remain above terms. </li>
</ul>



T&amp;K Toka Co Ltd (4636 JP) has satisfied the precondition of selling its Hangzhou Toka Ink stake to hold less than 30%. The offer is targeted for early January.
Due to Dalton's stake building, the shares have consistently traded above Bain’s pre-conditional JPY1,400 offer. Bain can either launch the tender with unchanged terms or bump the offer.
A bump is likely as, despite the irrevocables, satisfying the minimum acceptance condition is challenging. The Board will struggle to recommend the offer if the shares remain above terms. 


T&K Toka (4636 JP): Bain Decision Time as Progress Made on a Pre-Condition

<ul>
<li>A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.</li>
<li>ECM developments - <a href="https://www.smartkarma.com/entities/doosan-robotics" target="_blank" data-smartkarma-citation="entities:36816:1" rel="noopener">Doosan Robotics (454910 KS)</a>, <a href="https://www.smartkarma.com/entities/vng-limited" target="_blank" data-smartkarma-citation="entities:26716:1" rel="noopener">VNG (VinaGame) (VNG US)</a>, <a href="https://www.smartkarma.com/entities/integral-corporation" target="_blank" data-smartkarma-citation="entities:40028:1" rel="noopener">Integral Corporation (5842 JP)</a>, <a href="https://www.smartkarma.com/entities/tuhu-car" target="_blank" data-smartkarma-citation="entities:36012:1" rel="noopener">Tuhu Car (2007986D HK)</a> and <a href="https://www.smartkarma.com/entities/4paradigm" target="_blank" data-smartkarma-citation="entities:34465:1" rel="noopener">4Paradigm (1764934D HK)</a> IPOs.</li>
<li>Event-Driven developments - <a href="https://www.smartkarma.com/entities/t-k-toka-co-ltd" target="_blank" data-smartkarma-citation="entities:18678:1" rel="noopener">T&amp;K Toka Co Ltd (4636 JP)</a>, <a href="https://www.smartkarma.com/entities/imax-china-holding-inc" target="_blank" data-smartkarma-citation="entities:888:1" rel="noopener">IMAX China Holding (1970 HK)</a>, <a href="https://www.smartkarma.com/entities/poly-culture-group-corp-h" target="_blank" data-smartkarma-citation="entities:4729:1" rel="noopener">Poly Culture Group Corp H (3636 HK)</a>, <a href="https://www.smartkarma.com/entities/liontown-resources-ltd" target="_blank" data-smartkarma-citation="entities:20488:1" rel="noopener">Liontown Resources (LTR AU)</a>, <a href="https://www.smartkarma.com/entities/pact-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:692:1" rel="noopener">Pact Group Holdings (PGH AU)</a>. </li>
</ul>


A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments - Doosan Robotics (454910 KS), VNG (VinaGame) (VNG US), Integral Corporation (5842 JP), Tuhu Car (2007986D HK) and 4Paradigm (1764934D HK) IPOs.
Event-Driven developments - T&amp;K Toka Co Ltd (4636 JP), IMAX China Holding (1970 HK), Poly Culture Group Corp H (3636 HK), Liontown Resources (LTR AU), Pact Group Holdings (PGH AU). 


Weekly Deals Digest (17 Sep) - T&K Toka, IMAX, Poly Culture, Doosan Robotics, Integral, Tuhu

<ul>
<li>Nippon Active Value Fund/Michael 1925/Dalton has <a href="https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100RTU4.pdf?sv=2020-08-04&amp;st=2023-09-13T11%3A41%3A01Z&amp;se=2028-09-13T15%3A00%3A00Z&amp;sr=b&amp;sp=rl&amp;sig=Gk6vJW3H5NsHQ3CtE0BAJ8ckDeH3%2Bt2WIWinPU8UDV8%3D" target="_blank" rel="noopener">increased</a> their <a href="https://www.smartkarma.com/entities/t-k-toka-co-ltd" target="_blank" data-smartkarma-citation="entities:18678:1" rel="noopener">T&amp;K Toka Co Ltd (4636 JP)</a> shareholding from 22.23% to 23.77% of outstanding shares (22.25% to 23.79% of ownership ratio including share options).</li>
<li>
<a href="https://www.smartkarma.com/entities/t-k-toka-co-ltd" target="_blank" data-smartkarma-citation="entities:18678:1" rel="noopener"></a>T&amp;K Toka shares have traded above Bain’s JPY1,400 pre-conditional offer, fuelling speculation of a bump. A rival proposal at least 5% above triggers the “Counter Tender Offer” clause.</li>
<li>The four possible scenarios with declining probabilities are: Bain calls Dalton's bluff, Bain marginally bumps, Dalton launches a rival offer or Dalton rollovers its stake into a privatised T&amp;K Toka.</li>
</ul>


Nippon Active Value Fund/Michael 1925/Dalton has increased their T&amp;K Toka Co Ltd (4636 JP) shareholding from 22.23% to 23.77% of outstanding shares (22.25% to 23.79% of ownership ratio including share options).

T&amp;K Toka shares have traded above Bain’s JPY1,400 pre-conditional offer, fuelling speculation of a bump. A rival proposal at least 5% above triggers the “Counter Tender Offer” clause.
The four possible scenarios with declining probabilities are: Bain calls Dalton's bluff, Bain marginally bumps, Dalton launches a rival offer or Dalton rollovers its stake into a privatised T&amp;K Toka.


T&K Toka (4636 JP): Possible Offer Scenarios as Dalton Ups Its Stake

<ul>
<li>Last year, 20% owner Dalton approached <a href="https://www.smartkarma.com/entities/t-k-toka-co-ltd" target="_blank" data-smartkarma-citation="entities:18678:1" rel="noopener">T&amp;K Toka Co Ltd (4636 JP)</a> for an MBO, but walked when questioned. Then in January bid ¥1300 to double their stake to 44%.</li>
<li>They were not successful. The firm held a beauty contest. Bain won at ¥1400 despite ¥1300 getting no response and markets up big since. It's possible not everyone was invited. </li>
<li>Since the Bain deal announcement, the stock has mostly traded at/through terms. Now we find out Dalton has been buying (now 23.77%). This increases the chances of a bump.</li>
</ul>


Last year, 20% owner Dalton approached T&amp;K Toka Co Ltd (4636 JP) for an MBO, but walked when questioned. Then in January bid ¥1300 to double their stake to 44%.
They were not successful. The firm held a beauty contest. Bain won at ¥1400 despite ¥1300 getting no response and markets up big since. It's possible not everyone was invited. 
Since the Bain deal announcement, the stock has mostly traded at/through terms. Now we find out Dalton has been buying (now 23.77%). This increases the chances of a bump.


T&K TOKA (4636) Gets More Interesting - A Bump Is Now A Distinct Possibility

Japan

T&K TOKA CO., LTD. manufactures and sells specialized inks for printing applications.  The Company exports its products throughout Southeast Asia.

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T&K Toka Co Ltd (4636 JP)

T&K TOKA (4636 JP): Imminent TOB Launch? Imminent Bump Needed?

Trading 2% through terms now, and consistently through terms almost every day since the announcement, there is probably enough stock in the AGAINST...

Travis Lundy

T&K Toka (4636 JP): Bain Decision Time as Progress Made on a Pre-Condition

A bump is likely as, despite the irrevocables, satisfying the minimum acceptance condition is challenging. The Board will struggle to recommend the...

Arun George

Weekly Deals Digest (17 Sep) - T&K Toka, IMAX, Poly Culture, Doosan Robotics, Integral, Tuhu

Last week, notable developments occurred in Event-Driven (TK Toka, Golden Eagle, IMAX China, Poly Culture, Liontown, Pact, Symbio) and ECM (Doosan...

Arun George

T&K Toka (4636 JP): Possible Offer Scenarios as Dalton Ups Its Stake

The four possible scenarios with declining probabilities are: Bain calls Dalton's bluff, Bain marginally bumps, Dalton launches a rival offer or...

Arun George

T&K TOKA (4636) Gets More Interesting - A Bump Is Now A Distinct Possibility

Dalton attempted an MBO on T&K Toka, later bid to double their stake, got nothing. Bain won a beauty contest and got a recommended deal. Dalton...

Travis Lundy

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T&K TOKA (4636 JP): Imminent TOB Launch? Imminent Bump Needed?

Trading 2% through terms now, and consistently through terms almost every day since the announcement, there is probably enough stock in the AGAINST...

Travis Lundy

T&K Toka (4636 JP): Bain Decision Time as Progress Made on a Pre-Condition

A bump is likely as, despite the irrevocables, satisfying the minimum acceptance condition is challenging. The Board will struggle to recommend the...

Arun George

Weekly Deals Digest (17 Sep) - T&K Toka, IMAX, Poly Culture, Doosan Robotics, Integral, Tuhu

Last week, notable developments occurred in Event-Driven (TK Toka, Golden Eagle, IMAX China, Poly Culture, Liontown, Pact, Symbio) and ECM (Doosan...

Arun George

T&K Toka (4636 JP): Possible Offer Scenarios as Dalton Ups Its Stake

The four possible scenarios with declining probabilities are: Bain calls Dalton's bluff, Bain marginally bumps, Dalton launches a rival offer or...

Arun George

T&K TOKA (4636) Gets More Interesting - A Bump Is Now A Distinct Possibility

​Dalton attempted an MBO on T&K Toka, later bid to double their stake, got nothing. Bain won a beauty contest and got a recommended deal. Dalton...

Travis Lundy

Dalton attempted an MBO on T&K Toka, later bid to double their stake, got nothing. Bain won a beauty contest and got a recommended deal. Dalton...