Event-Driven and Index Rebalance

Weekly Top Ten Event-Driven and Index Rebalance – May 24, 2026

This weekly newsletter pulls together summaries of the top ten most-read Insights across Event-Driven and Index Rebalance on Smartkarma.

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1. [Japan Navel-Gazing] Thinking About The Value of Toshiba

By Travis Lundy, Quiddity Advisors

  • Toshiba was taken over in late 2023 by a consortium led by local PE firm Japan Industrial Partners. The official takeover price was ¥2.0 trillion. 
  • That was financed by ¥1.2trln of senior lending, ¥200bn of prefs, ¥520bn of equity, and ¥235.5bn of mezzanine finance which meant net debt on Day1 was likely about ¥1.1trln.
  • EBITDA was ¥180bn in Mar24, ¥338bn in Mar25, and ¥482bn in Mar26. Things are improving. And Toshiba held Kioxia shares. That’s gone well too. How well? Look inside.

2. [Japan Event] Rakuten Fintech Group Restructuring – Dirty Deeds Done Unto Rakuten Bank (5838)

By Travis Lundy, Quiddity Advisors

  • Today post-close, Rakuten Bank (5838 JP) and Rakuten (4755 JP) announced the Fintech Restructuring. “Fintech” is a stretch. It’s an e-bank and an e-broker with a credit card company.
  • There are likely a lot of synergies, but this may be a bad deal for Rakuten Bank shareholders. They are paying much more for the synergies than the others are.
  • Rakuten Bank contributes 55.4% of the last four quarters of NEWCO OP, but get only 43% of the shares in NEWCO. Securities+Card OP is 30% “stronger” than Bank OP.

3. Samsung Labor Deal: Detailed Structure and Stock Impact Breakdown

By Sanghyun Park, Clepsydra Capital

  • Stock based bonus with lockup removes overhang, supports tape. OP hurdle intact at KRW 200 trillion, no OP no payout, reinforcing growth narrative and downside support.
  • Bonus tied to separate KPI set later, not OP or EVA, pushing dispute out. Strike risk gone, union leverage weak, mgmt likely controls KPI design.
  • Mgmt to announce ~KRW 30 trillion buyback given limited treasury stock. Likely bundled with shareholder returns, driving front running flows and near term upside, especially in prefs.

4. [Japan Event] Rakuten Bank (5838) – “Exciting” Mizuho News Doesn’t Do Much But Expect More News Soon

By Travis Lundy, Quiddity Advisors

  • A weekend report suggested Mizuho Financial Group (8411 JP) might invest in Rakuten Bank (5838 JP) when a Rakuten Financial Group is formed. They own 14.99% of Rakuten Card. 
  • The story suggested Mizuho would swap that stake for a stake in Rakuten Bank. Mizuho Securities (which eclipsed Daiwa Securities last year) would keep its 49% stake in Rakuten Securities.
  • This un-complicates things slightly, and suggests earlier analysis was roughly right. Rakuten Bank jumped 10%. It’s up again today. Expect a decision on Rakuten FG this month.

5. NIKKON Holdings (9072 JP): Thoughts on a Potential Privatisation Offer

By Arun George, Global Equity Research Ltd

  • On 20 May, Bloomberg reported that Nikkon Holdings (9072 JP) is considering going private and preparing to hold a first-round bidding round in early June. 
  • The shareholder structure is conducive to a privatisation bid as two activists (Farallon and Oasis) hold 51.6 million shares (44.23% ownership ratio). 
  • Bain Capital, Warburg Pincus and Blackstone are expected to take part in the auction. My analysis suggests an offer price of at least 6,200 (7.4% above the last close).

6. My Take on What Is Driving the KOSDAQ Tape Today

By Sanghyun Park, Clepsydra Capital

  • National Growth Fund retail opened today, KRW 720bn first tranche, next in H1 next year. KOSDAQ move is sentiment driven on strong demand chatter this morning, not actual inflows.
  • Blaming a 5 percent KOSDAQ move on this alone is a stretch; it is short covering in battery and biotech plus KOSPI to KOSDAQ rotation on a policy signal.
  • 5% KOSDAQ move is placebo causality flip; fund hype only catalyst for rotation tape. Key call is durability vs normalization, I lean fade as flows and positioning reset.

7. CR Power (836 HK): CSRC Clears Clean Energy Spin-Off

By David Blennerhassett, Quiddity Advisors

  • A fortnight after the Shenzhen Stock Exchange approved SOE-backed power play China Resources Power (836 HK) (CRP)’s A-share listing of its renewable energy unit, CSRC approval is now satisfied.
  • The process has taken over three years. Since that time, CRP’s earnings and attributable installed capacity, is now evenly split between its thermal and renewable energy segments.
  • With CSRC and SZSE approvals in the bag, the final stretch should move relatively quickly.

8. Flow Cannibalization Trade Setup Around Samsung and Hynix Leveraged ETF Listings

By Sanghyun Park, Clepsydra Capital

  • Focus is on rotation from semi leveraged ETFs, about KRW 700bn to 1tn in 5 days, mainly cannibalizing KODEX and TIGER which proxy Samsung and Hynix leverage.
  • Better trade is smaller names, not Samsung or Hynix. Futures likely take heavy sell pressure post listing, driving outsized basis blowout and spot futures dislocation versus turnover.
  • Screen names are Hanmi, Leeno, Wonik IPS, EO Technics, ISC. Expect 1 to 1.3x futures sell flow. Play via cash shorts or basis on backwardation.

9. Merger Arb Mondays (18 May) – ENN, Skyworth, Tohoku, Shinko Shoji, Kakaku, Taiyo, Qoria, OOh!media

By Arun George, Global Equity Research Ltd


10. [Japan Event] Kosaido (7868) – Death Had a Bad Year in FYMar26 but It’s a Growth Business

By Travis Lundy, Quiddity Advisors

  • Kosaido (7868 JP) used to be a stationer and printing business. Printing has been a bad business for decades. But the company also has a large funeral parlour business.
  • That business dominates Operating Profits and Assets. Years ago, the CEO tried to MBO it cheaply. Murakami intervened, others bought afterwards, and a few large holders dominate this illiquid stock. 
  • Today, speculative/investigative media outlet FACTA reported that Kosaido might sell its funeral parlour business. PE funds are reportedly interested. That would create a huge pile of cash but what then?