Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

A New Era of Home Centre Consolidation Starts as DCM Buys Shimachu

Targeting Nitori: Cainz Follows Workman’s Success into Homeware Retailing with Style Factory Chain

🇯🇵 JAPAN • Results & Revisions 10/​​​​​02 DCM (Under)Bids for Shimachu, Zuiko>Unicharm, Ktk>Canon

Shimachu's Buyback Is Done But The Trade Is Not Done

BIG Shimachu (8184) Buyback - An Interesting Trade Profile

Quiddity Advisors

Event-Driven

A bit more than a week ago, NHK reported that <a href="https://www.smartkarma.com/entities/dcm-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:13042:1" rel="noopener">Dcm Holdings (3050 JP)</a> would launch a partial Tender Offer on <a href="https://www.smartkarma.com/entities/shimachu-co-ltd" target="_blank" data-smartkarma-citation="entities:5235:1" rel="noopener">Shimachu Co Ltd (8184 JP)</a> in October to make Shimachu a subsidiary. That sent shares limit up and then to about ¥3500. I said in <a href="https://www.smartkarma.com/insights/dcm-partial-offer-for-shimachu-coming" target="_blank" data-smartkarma-citation="insights:43444" rel="noopener">DCM Partial Offer for Shimachu Coming?</a> that it would probably need a price of ¥3700-4200 to get done, based on the shareholder structure.Today after the close DCM announced a full Tender Offer for Shimachu at ¥4200/share in order to fully take it private. Now we're talking. This deal makes sense, and as per the analytics, it is not overly expensive for DCM, and it gives them scale in a growing sub-sector of homecenters and home furnishings, and improves the geographical mix. Unlike many full takeover deals in Japan, this has a minimum threshold of 50%, which is what the threshold for a partial tender offer would likely have been. The suggestion here is that they are not completely sure they'd get to 66.7% which would be the level necessary to squeeze out minorities.Much more below the fold.

A bit more than a week ago, NHK reported that Dcm Holdings (3050 JP) would launch a partial Tender Offer on Shimachu Co Ltd (8184 JP) in October to make Shimachu a subsidiary. That sent shares limit up and then to about ¥3500. I said in DCM Partial Offer for Shimachu Coming? that it would probably need a price of ¥3700-4200 to get done, based on the shareholder structure.Today after the close DCM announced a full Tender Offer for Shimachu at ¥4200/share in order to fully take it private. Now we're talking. This deal makes sense, and as per the analytics, it is not overly expensive for DCM, and it gives them scale in a growing sub-sector of homecenters and home furnishings, and improves the geographical mix. Unlike many full takeover deals in Japan, this has a minimum threshold of 50%, which is what the threshold for a partial tender offer would likely have been. The suggestion here is that they are not completely sure they'd get to 66.7% which would be the level necessary to squeeze out minorities.Much more below the fold.

Japan Metropolitan Fund Investment Corporation (8953 JP)

Japan Metropolitan Fund Investment Corporation

DCM Does a Full Takeover of Shimachu - Looks Like a Strong Price. Look Again.