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

Quiddity Advisors

Event-Driven

In the middle of last week, Russia's largest chain of hypermarkets <a href="https://www.smartkarma.com/entities/28015" target="_blank" data-smartkarma-citation="entities:28015:1">Lenta Ltd (LNTA LI)</a>  <a href="http://www.lentainvestor.com/en/media-centre/news-article/id/2247" target="_blank">announced</a> that it was aware that there were ongoing discussions between Luna (TPG's holding entity, which owns 34.13% of Lenta’s capital) and Alexey Mordashov's Severgroup, for Luna to sell its stake in Lenta to the Russian conglomerate. A day later, Lenta <a href="http://www.lentainvestor.com/en/media-centre/news-article/id/2252" target="_blank">announced</a> the company was aware of discussions between Severgroup and the EBRD (7.40% holder). Reuters <a href="https://www.reuters.com/article/russia-lenta-mordashov/update-1-russian-steel-tycoon-buys-42-pct-stake-in-food-retailer-lenta-idUSL8N21J6UU" target="_blank">reported</a> last night that Severgroup had reached an agreement to buy a 41.9% stake, excluding treasury shares, in Lenta from those two sellers, for a total of US$721mm, or US$18 per share or US$3.60 per GDR. That implies a price of US$1.75bn for the whole company. Later last night, Lenta <a href="http://www.lentainvestor.com/en/media-centre/news-article/id/2270" target="_blank">announced</a> on its website (full press release <a href="http://www.lentainvestor.com/en/files/file/view/id/1463" target="_blank">here</a>) a cash offer for all the shares had been proposed. The Offer has a pre-condition dealing with the above-mentioned transactions being approved by those who need to approve.The Offer Price is an 8.11% premium to the last trade on 26 March - the undisturbed price, and a premium of 9.76% to the 6mo average price of US$3.28 for the GDRs. There may be something interesting to do here.

In the middle of last week, Russia's largest chain of hypermarkets Lenta Ltd (LNTA LI)  announced that it was aware that there were ongoing discussions between Luna (TPG's holding entity, which owns 34.13% of Lenta’s capital) and Alexey Mordashov's Severgroup, for Luna to sell its stake in Lenta to the Russian conglomerate. A day later, Lenta announced the company was aware of discussions between Severgroup and the EBRD (7.40% holder). Reuters reported last night that Severgroup had reached an agreement to buy a 41.9% stake, excluding treasury shares, in Lenta from those two sellers, for a total of US$721mm, or US$18 per share or US$3.60 per GDR. That implies a price of US$1.75bn for the whole company. Later last night, Lenta announced on its website (full press release here) a cash offer for all the shares had been proposed. The Offer has a pre-condition dealing with the above-mentioned transactions being approved by those who need to approve.The Offer Price is an 8.11% premium to the last trade on 26 March - the undisturbed price, and a premium of 9.76% to the 6mo average price of US$3.28 for the GDRs. There may be something interesting to do here.

Severgroup Puts in a Cheeky Bid for Lenta - TPG and EBRD Bail