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

SoftAltabaYahooBank:  Artful Complication with Clarity

Yahoo Japan Placement / Altaba Selldown﻿ ﻿- ﻿﻿Needs a Longer Time Frame or a Strategic Shareholder

Altaba Tender Offer II:   Who's There?   "Just Us Chickens" 🐓

Altaba Tender Extension - Waiting for SEC Exemptive Order

Altaba and Yahoo Japan - The Art of the Possible

Altaba Tender Update - One Week To Go and YJ Sales

Quiddity Advisors

Event-Driven

Eight weeks ago I wrote after <a href="https://www.smartkarma.com/entities/19603" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">Yahoo Japan Corp (4689 JP)</a>​ earnings that I expected a kind of large resolution stake sale whereby <a href="https://www.smartkarma.com/entities/786" target="_blank" data-smartkarma-citation="entities:786:1" rel="noopener">Altaba Inc (AABA US)</a>​ - which has expressed a desire to sell its entire 34% stake in Yahoo Japan - would sell a large chunk of stock to Yahoo Japan and then would sell a large stake in an offering. In <a href="https://www.smartkarma.com/insights/altaba-and-yahoo-japan-the-art-of-the-possible" target="_blank" data-smartkarma-citation="insights:20504" rel="noopener">Altaba and Yahoo Japan - The Art of the Possible</a>​ I wrote about the possible types of transaction which could be envisaged, suggesting that a buyback by tender offer was unlikely. There was a good reason for that. Foreigners are not treated well in such tenders.A news <a href="http://business.nikkeibp.co.jp/atcl/report/15/110879/070900837/?P=1" target="_blank" rel="noopener">scoop</a> in NikkeiBP after the close suggests that Yahoo Japan is considering a purchase of ¥200 billion of shares, or about 10% of shares outstanding. The fact that Yahoo Japan is considering it was noted in a <a href="https://s.yimg.jp/images/docs/ir/release/2018/jp20180709.pdf" target="_blank" rel="noopener">clarification</a> to the market issued on TDNET/website after the close.The suggestion is that one entity in <a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group Corp (9984 JP)</a>​ would purchase the ~10% of shares outstanding from Altaba, raising its group stake from 42.9% to 52.9%, then Softbank Group would turn around and sell the same ~10% stake in Yahoo Japan in an own-share tender offer, lowering Softbank's stake back below 50%. If Yahoo Japan cancelled the shares bought back, it would mean Softbank's stake would rise from 42.9% to ~47.7% if the Tender Offer were conducted at ¥350/share. The concept is artful. More artful than I thought possible. And it would make a decent dent in the number of shares to be sold by Altaba (lowering their stake from ~1.98bn shares to about 1.4bn shares). And it would bring an equity offering into the realm of the possible.

Eight weeks ago I wrote after Yahoo Japan Corp (4689 JP)​ earnings that I expected a kind of large resolution stake sale whereby Altaba Inc (AABA US)​ - which has expressed a desire to sell its entire 34% stake in Yahoo Japan - would sell a large chunk of stock to Yahoo Japan and then would sell a large stake in an offering. In Altaba and Yahoo Japan - The Art of the Possible​ I wrote about the possible types of transaction which could be envisaged, suggesting that a buyback by tender offer was unlikely. There was a good reason for that. Foreigners are not treated well in such tenders.A news scoop in NikkeiBP after the close suggests that Yahoo Japan is considering a purchase of ¥200 billion of shares, or about 10% of shares outstanding. The fact that Yahoo Japan is considering it was noted in a clarification to the market issued on TDNET/website after the close.The suggestion is that one entity in Softbank Group Corp (9984 JP)​ would purchase the ~10% of shares outstanding from Altaba, raising its group stake from 42.9% to 52.9%, then Softbank Group would turn around and sell the same ~10% stake in Yahoo Japan in an own-share tender offer, lowering Softbank's stake back below 50%. If Yahoo Japan cancelled the shares bought back, it would mean Softbank's stake would rise from 42.9% to ~47.7% if the Tender Offer were conducted at ¥350/share. The concept is artful. More artful than I thought possible. And it would make a decent dent in the number of shares to be sold by Altaba (lowering their stake from ~1.98bn shares to about 1.4bn shares). And it would bring an equity offering into the realm of the possible. 

アルタバとヤフージャパン - 想像以上に芸術的

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アルタバとヤフージャパン - 想像以上に芸術的