Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

On 18th March 2021, Japan-based waste water management company <a href="https://www.smartkarma.com/entities/takeei-corp" target="_blank" data-smartkarma-citation="entities:7936:1" rel="noopener">Takeei Corp (2151 JP)</a> and metal recycling company <a href="https://www.smartkarma.com/entities/rever-holdings-corp" target="_blank" data-smartkarma-citation="entities:32218:1" rel="noopener">Rever Holdings Corp (5690 JP)</a> announced (<a href="https://ssl4.eir-parts.net/doc/2151/tdnet/1945449/00.pdf" target="_blank" rel="noopener">J-only</a>) they had agreed to merge in a transaction that will see both companies joined under a new combined holding company (NewCo). Takeei Shareholders are expected to receive 1.24 shares of NewCo per Takeei Share while Rever Shareholders are expected to receive 1.00 share of NewCo per Rever Share. Previously, I covered this Deal in <a href="https://www.smartkarma.com/insights/takeei-2151-jp-rever-5690-jp-merger-topix-event-to-be-triggered" target="_blank" data-smartkarma-citation="insights:49347" rel="noopener">Takeei (2151 JP) - Rever (5690 JP) Merger: TOPIX Event to Be Triggered</a> taking a Bullish stance due to the potential TOPIX upweight consequences.Since the Deal was announced, shares of Rever and Takeei have gained 24% and 30% respectively.Read below to find out the latest updates to this situation.

On 18th March 2021, Japan-based waste water management company Takeei Corp (2151 JP) and metal recycling company Rever Holdings Corp (5690 JP) announced (J-only) they had agreed to merge in a transaction that will see both companies joined under a new combined holding company (NewCo). Takeei Shareholders are expected to receive 1.24 shares of NewCo per Takeei Share while Rever Shareholders are expected to receive 1.00 share of NewCo per Rever Share. Previously, I covered this Deal in Takeei (2151 JP) - Rever (5690 JP) Merger: TOPIX Event to Be Triggered taking a Bullish stance due to the potential TOPIX upweight consequences.Since the Deal was announced, shares of Rever and Takeei have gained 24% and 30% respectively.Read below to find out the latest updates to this situation. 

Takeei (2151 JP) - Rever (5690 JP): Shareholder Approvals Complete - Road to TOPIX Upweight Clear

<div class="content-highlight">In late-January, we witnessed the announcement of a merger between temporary staffing companies <a href="https://www.smartkarma.com/entities/trust-tech-inc" target="_blank" data-smartkarma-citation="entities:17685:1" rel="noopener">BeNEXT Group (2154 JP)</a> and <a href="https://www.smartkarma.com/entities/yumeshin-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:12939:1" rel="noopener">Yumeshin Holdings (2362 JP)</a>. I discussed this Deal in <a href="https://www.smartkarma.com/insights/benext-yumeshin-merger-interesting-fundamentals-and-a-topix-index-event" target="_blank" data-smartkarma-citation="insights:47566" rel="noopener">BeNEXT - Yumeshin Merger: Interesting Fundamentals and a TOPIX Index Event</a> explaining why I was BULLISH. Shares in both companies have rallied 25%+ in less than 2 months.  </div>Now we have a similar situation again. Japan-based waste water management company <a href="https://www.smartkarma.com/entities/takeei-corp" target="_blank" data-smartkarma-citation="entities:7936:1" rel="noopener">Takeei Corp (2151 JP)</a> and metal recycling company <a href="https://www.smartkarma.com/entities/rever-holdings-corp" target="_blank" data-smartkarma-citation="entities:32218:1" rel="noopener">Rever Holdings Corp (5690 JP)</a> announced after market-close on 18th March 2021 (<a href="https://ssl4.eir-parts.net/doc/2151/tdnet/1945449/00.pdf" target="_blank" rel="noopener">J-only</a>) that they had agreed to merge in a transaction that will see both companies joined under a new combined holding company. According to their announcement, the merger is expected to be effective on 1st October 2021 which will also be the listing date for the new combined entity.  This too is an interesting small cap situation.

In late-January, we witnessed the announcement of a merger between temporary staffing companies BeNEXT Group (2154 JP) and Yumeshin Holdings (2362 JP). I discussed this Deal in BeNEXT - Yumeshin Merger: Interesting Fundamentals and a TOPIX Index Event explaining why I was BULLISH. Shares in both companies have rallied 25%+ in less than 2 months.  Now we have a similar situation again. Japan-based waste water management company Takeei Corp (2151 JP) and metal recycling company Rever Holdings Corp (5690 JP) announced after market-close on 18th March 2021 (J-only) that they had agreed to merge in a transaction that will see both companies joined under a new combined holding company. According to their announcement, the merger is expected to be effective on 1st October 2021 which will also be the listing date for the new combined entity.  This too is an interesting small cap situation.

Takeei (2151 JP) - Rever (5690 JP) Merger: TOPIX Event to Be Triggered

Japan

TAKEEI CORPORATION is mainly involved in collecting, transporting, and disposing or recycling industrial and general waste.  The Company also provides environmental solution and consulting services.

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Takeei Corp (2151 JP)

Takeei (2151 JP) - Rever (5690 JP): Shareholder Approvals Complete - Road to TOPIX Upweight Clear

Takeei and Rever got shareholders to approve the merger, as expected. Performance has been in line with peers. NEWCO is cheap to peers and there is...

Janaghan Jeyakumar, CFA

Takeei (2151 JP) - Rever (5690 JP) Merger: TOPIX Event to Be Triggered

Takeei and Rever Holdings have announced a scrip merger and formation of a Holding Company for October 1st. The deal should pass the AGM/EGMs....

Janaghan Jeyakumar, CFA

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