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

Japan Post Holdings - This Is the Big Move

Japan Post Holdings - World's Largest Cleanup Trade Announced - Story and Index Implications

Japan Post – Post Office Business Delivers a Perfect Setup

Japan Post Holdings - The Future Is Complex, But Interesting

Japan Post Insurance - A Surprising Selloff But Still A Buy

Japan Post Insurance - It's ON! Buyback, Huge Accretion, Restrictions Lifted. What's Not To Like?

Gravity Works As WeWork Doesn't; Now Plan B

Quiddity Advisors

Event-Driven

On 14 May, <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> announced earnings, a new Medium Term Management Plan called <a href="https://www.japanpost.jp/en/ir/news/jpn/pdf/20210514_01.pdf" target="_blank" rel="noopener">JP Vision 2025</a>, and an expected sale of shares of subsidiary <a href="https://www.smartkarma.com/entities/japan-post-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:840:1" rel="noopener">Japan Post Insurance (7181 JP)</a> so that it would end up owning less than 50.00% after the ToSTNeT-3 sale to be conducted 17 May, and the placing of a certain number of shares in trust so that JPH's voting rights into JPI became 49.9%. In the original <a href="https://www.japanpost.jp/en/ir/news/jpn/pdf/20210514_02.pdf" target="_blank" rel="noopener">announcement</a> of the expected sale of JPI shares, made with earnings and the Mid Term Plan announcement on 14 May, JPH said... <blockquote>The Company plans to utilize the funds earned from this disposal of shares for purposes such as the enhancement of corporate value of the Company and the Japan Post Group.</blockquote>On the 17th of May, the following business day, JPH sold that very large block of shares. Yesterday after the close, <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> announced that it had arranged the trust to take 559,900 shares of <a href="https://www.smartkarma.com/entities/japan-post-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:840:1" rel="noopener">Japan Post Insurance (7181 JP)</a> (details in the discussion point <a href="https://www.smartkarma.com/insights/huge-japan-post-insurance-buyback-mooted-decks-cleared-time-to-buy" target="_blank" rel="noopener">here</a>) so that it only owned 49.90%, thereby lifting certain restrictions placed on JPI by the Postal Service Privatization Act and lifting certain reporting requirements on JPH under the Insurance Business Act because it no longer held more than 50% of an insurer.<div class="content-highlight">Today after the close, <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a> made a Japanese-only <a href="https://www.smartkarma.com/insights/huge-japan-post-insurance-buyback-mooted-decks-cleared-time-to-buy" target="_blank" rel="noopener">announcement</a> that it would buy back up to 276,090,500 shares (6.14% of shares out) for up to ¥250 billion in a ToSTNeT-3 buyback conducted at ¥905.5/share on 11 June 2021 before the open. </div>In the <a href="https://www.japanpost.jp/group/governance/pdf/01.pdf" target="_blank" rel="noopener">Corporate Governance Report</a> published (in Japanese only) on 10 May 2021, the company outlined its policy of not favouring the major shareholder (the Finance Ministry owned 63.29% of shares out or creating a disadvantage for minority shareholders. The ToSTNeT-3 buyback is open to all, and therefore fits the goal of JPH being able to treat all shareholders equally. And it leaves the shares in an interesting position.

On 14 May, Japan Post Holdings (6178 JP) announced earnings, a new Medium Term Management Plan called JP Vision 2025, and an expected sale of shares of subsidiary Japan Post Insurance (7181 JP) so that it would end up owning less than 50.00% after the ToSTNeT-3 sale to be conducted 17 May, and the placing of a certain number of shares in trust so that JPH's voting rights into JPI became 49.9%. In the original announcement of the expected sale of JPI shares, made with earnings and the Mid Term Plan announcement on 14 May, JPH said... The Company plans to utilize the funds earned from this disposal of shares for purposes such as the enhancement of corporate value of the Company and the Japan Post Group.On the 17th of May, the following business day, JPH sold that very large block of shares. Yesterday after the close, Japan Post Holdings (6178 JP) announced that it had arranged the trust to take 559,900 shares of Japan Post Insurance (7181 JP) (details in the discussion point here) so that it only owned 49.90%, thereby lifting certain restrictions placed on JPI by the Postal Service Privatization Act and lifting certain reporting requirements on JPH under the Insurance Business Act because it no longer held more than 50% of an insurer.Today after the close, Japan Post Holdings (6178 JP) made a Japanese-only announcement that it would buy back up to 276,090,500 shares (6.14% of shares out) for up to ¥250 billion in a ToSTNeT-3 buyback conducted at ¥905.5/share on 11 June 2021 before the open. In the Corporate Governance Report published (in Japanese only) on 10 May 2021, the company outlined its policy of not favouring the major shareholder (the Finance Ministry owned 63.29% of shares out or creating a disadvantage for minority shareholders. The ToSTNeT-3 buyback is open to all, and therefore fits the goal of JPH being able to treat all shareholders equally. And it leaves the shares in an interesting position.

Japan Post Holdings BUYBACK - Recycling Sale Proceeds As Expected; No BIG Catalyst Yet