Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>UK-Based Japanese share activist AVI said publicly yesterday that the price Mitsui OSK announced to take out minorities in <a href="https://www.smartkarma.com/entities/daibiru-corp" target="_blank" data-smartkarma-citation="entities:19065:1" rel="noopener">Daibiru Corp (8806 JP)</a> should be ¥3,000/share not ¥2,200/share.</li>
<li>Today AVI launched a website at <a href="https://www.assetvalueinvestors.com/stopexploitingdaibiru/" target="_blank" rel="noopener">https://www.assetvalueinvestors.com/stopexploitingdaibiru/</a> in which they make their <a href="https://www.assetvalueinvestors.com/content/uploads/2021/12/Daibiru-Public-Presentation_202112_ENG_vF.pdf" target="_blank" rel="noopener">case</a>. </li>
<li>They've got a point. And it is definitely a good point. But the shareholder structure means this is a short-gamma situation for bumpitrageurs.</li>
</ul>


UK-Based Japanese share activist AVI said publicly yesterday that the price Mitsui OSK announced to take out minorities in Daibiru Corp (8806 JP) should be ¥3,000/share not ¥2,200/share.
Today AVI launched a website at https://www.assetvalueinvestors.com/stopexploitingdaibiru/ in which they make their case. 
They've got a point. And it is definitely a good point. But the shareholder structure means this is a short-gamma situation for bumpitrageurs.


Mitsui OSK TOB for Daibiru (8806) Gets Loose from Its Mooring

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mitsui-o-s-k-lines-ltd" target="_blank" data-smartkarma-citation="entities:20717:1" rel="noopener">Mitsui O.S.K. Lines (9104 JP)</a> is cleaning up some of its subsidiary listings.</li>
<li>On 30 November, Mitsui OSK announced the takeout of subsidiary <a href="https://www.smartkarma.com/entities/daibiru-corp" target="_blank" data-smartkarma-citation="entities:19065:1" rel="noopener">Daibiru Corp (8806 JP)</a> at ¥2,200/share. </li>
<li>The value may be light, but it is as good as it is going to get. This should be a done deal.</li>
</ul>



Mitsui O.S.K. Lines (9104 JP) is cleaning up some of its subsidiary listings.
On 30 November, Mitsui OSK announced the takeout of subsidiary Daibiru Corp (8806 JP) at ¥2,200/share. 
The value may be light, but it is as good as it is going to get. This should be a done deal.


Mitsui OSK Tender Offer for Daibiru (8806) Subsidiary

In early December, I wrote about <a href="https://www.smartkarma.com/entities/12698" target="_blank" data-smartkarma-citation="entities:12698:1">Toc Co Ltd (8841 JP)</a>'s Bigly Buyback. On December 5th the company announced a ToSTNeT-3 buyback of up to 20 million shares, which was 16.38% of the shares outstanding. The stated reasons for the buybacks were:<blockquote>"The buyback is being conducted in order to improve capital efficiency given the opportunity provided by changing business environment" (or words to that effect). We have received notifications from shareholders Effissimo Capital Management Pte Ltd, Mizuho Bank, Mitsubishi-Tokyo UFJ Bank, and Mitsui-Sumitomo Bank stating their intentions to sell the shares they hold in our company. </blockquote>The next day, when TOC <a href="http://toc.co.jp/toc/news/pages/jikokabushiki_20171206.pdf" target="_blank">announced</a> the results of the buyback (18,716,900 shares purchased), they said Effissimo had sold down 17,916,900 shares out of its 22,917,000 shares (officially <a href="http://toc.co.jp/toc/news/pages/syuyoukabunushi_20171214.pdf" target="_blank">announced</a> a week later), leaving it with 5,000,100 shares (a 4.1% stake). That meant someone else sold exactly 800,000 shares. In fact, the announcement says that Mizuho Bank, BoT-MUFJ Bank, and Mitsui-Sumitomo Bank all sold shares. This past week, the company said it would cancel 33,000,000 treasury shares at the end of March. <table class="table table-striped"><tbody><tr><td colspan="7"><h2>Shareholder Breakdown BEFORE and AFTER the Buyback</h2></td></tr><tr><td></td><td colspan="3" style="text-align: center;">BEFORE BUYBACK</td><td colspan="3" style="text-align: center;">AFTER BUYBACK</td></tr><tr><td></td><td style="text-align: center;">Shares Held</td><td style="text-align: center;">% shs out</td><td style="text-align: center;">% voting rights</td><td style="text-align: center;">Shares Held</td><td style="text-align: center;">% shs out</td><td style="text-align: center;">% voting rights</td></tr><tr><td>Treasury Shares</td><td style="text-align: right;">14,794,800</td><td style="text-align: right;">10.81%</td><td style="text-align: right;"></td><td style="text-align: right;"> 33,511,700</td><td style="text-align: right;">24.48%</td><td style="text-align: right;"></td></tr><tr><td colspan="7"></td></tr><tr><td>Effissimo Capital Management</td><td style="text-align: right;">22,917,000</td><td style="text-align: right;">16.74%</td><td style="text-align: right;">18.77%</td><td style="text-align: right;"> 4,979,864</td><td style="text-align: right;">3.64%</td><td style="text-align: right;">4.82%</td></tr><tr><td>New Otani Company</td><td style="text-align: right;">21,251,000</td><td style="text-align: right;">15.53%</td><td style="text-align: right;">17.41%</td><td style="text-align: right;"> 21,251,000</td><td style="text-align: right;">15.53%</td><td style="text-align: right;">20.56%</td></tr><tr><td>Ohtani Kosan YK</td><td style="text-align: right;">13,165,000</td><td style="text-align: right;">9.62%</td><td style="text-align: right;">10.78%</td><td style="text-align: right;"> 13,165,000</td><td style="text-align: right;">9.62%</td><td style="text-align: right;">12.74%</td></tr><tr><td>Otani Fund</td><td style="text-align: right;">6,427,000</td><td style="text-align: right;">4.70%</td><td style="text-align: right;">5.26%</td><td style="text-align: right;"> 6,427,000</td><td style="text-align: right;">4.70%</td><td style="text-align: right;">6.22%</td></tr><tr><td>Ohtani Kosan To</td><td style="text-align: right;">5,734,000</td><td style="text-align: right;">4.19%</td><td style="text-align: right;">4.70%</td><td style="text-align: right;"> 5,734,000</td><td style="text-align: right;">4.19%</td><td style="text-align: right;">5.55%</td></tr><tr><td>Shinryo Corp</td><td style="text-align: right;">4,966,000</td><td style="text-align: right;">3.63%</td><td style="text-align: right;">4.07%</td><td style="text-align: right;"> 4,966,000</td><td style="text-align: right;">3.63%</td><td style="text-align: right;">4.80%</td></tr><tr><td>Taisei Corp</td><td style="text-align: right;">4,800,000</td><td style="text-align: right;">3.51%</td><td style="text-align: right;">3.93%</td><td style="text-align: right;"> 4,800,000</td><td style="text-align: right;">3.51%</td><td style="text-align: right;">4.64%</td></tr><tr><td>Nippon Life</td><td style="text-align: right;">2,912,000</td><td style="text-align: right;">2.13%</td><td style="text-align: right;">2.39%</td><td style="text-align: right;"> 2,912,000</td><td style="text-align: right;">2.13%</td><td style="text-align: right;">2.82%</td></tr><tr><td>Ohtani Kazuhiko</td><td style="text-align: right;">1,606,000</td><td style="text-align: right;">1.17%</td><td style="text-align: right;">1.32%</td><td style="text-align: right;"> 1,606,000</td><td style="text-align: right;">1.17%</td><td style="text-align: right;">1.55%</td></tr><tr><td>Toei Co</td><td style="text-align: right;">1,520,000</td><td style="text-align: right;">1.11%</td><td style="text-align: right;">1.25%</td><td style="text-align: right;"> 1,520,000</td><td style="text-align: right;">1.11%</td><td style="text-align: right;">1.47%</td></tr><tr><td>Sanrio Co</td><td style="text-align: right;">1,296,000</td><td style="text-align: right;">0.95%</td><td style="text-align: right;">1.06%</td><td style="text-align: right;"> 1,296,000</td><td style="text-align: right;">0.95%</td><td style="text-align: right;">1.25%</td></tr><tr><td>OTHER CORPS</td><td style="text-align: right;">14,645,300</td><td style="text-align: right;">10.70%</td><td style="text-align: right;">12.00%</td><td style="text-align: right;"> 14,645,300</td><td style="text-align: right;">10.70%</td><td style="text-align: right;">14.17%</td></tr><tr><td colspan="7" style="text-align: right;"></td></tr><tr><td>Mizuho Bank*</td><td style="text-align: right;">2,630,000</td><td style="text-align: right;">1.92%</td><td style="text-align: right;">2.15%</td><td style="text-align: right;"> 2,230,000</td><td style="text-align: right;">1.63%</td><td style="text-align: right;">2.16%</td></tr><tr><td>BOT MUFJ Bank*</td><td style="text-align: right;">200,000</td><td style="text-align: right;">0.15%</td><td style="text-align: right;">0.16%</td><td style="text-align: right;"> -  </td><td style="text-align: right;">0.00%</td><td style="text-align: right;">0.00%</td></tr><tr><td>Mitsui Sumitomo Bank*</td><td style="text-align: right;">200,000</td><td style="text-align: right;">0.15%</td><td style="text-align: right;">0.16%</td><td style="text-align: right;"> -  </td><td style="text-align: right;">0.00%</td><td style="text-align: right;">0.00%</td></tr><tr><td colspan="7" style="text-align: right;"></td></tr><tr><td>Individuals not Otani Family</td><td style="text-align: right;">3,710,694</td><td style="text-align: right;">2.71%</td><td style="text-align: right;">3.04%</td><td style="text-align: right;"> 3,710,694</td><td style="text-align: right;">2.71%</td><td style="text-align: right;">3.59%</td></tr><tr><td></td><td style="text-align: right;"></td><td style="text-align: right;"></td><td style="text-align: right;"></td><td style="text-align: right;"></td><td style="text-align: right;"></td><td style="text-align: right;"></td></tr><tr><td>TOPIX Passive Investors</td><td style="text-align: right;"> 7,000,000</td><td style="text-align: right;">5.11%</td><td style="text-align: right;">5.73%</td><td style="text-align: right;"> 7,000,000</td><td style="text-align: right;">5.11%</td><td style="text-align: right;">6.77%</td></tr><tr><td>Other Passive</td><td style="text-align: right;"> 2,000,000</td><td style="text-align: right;">1.46%</td><td style="text-align: right;">1.64%</td><td style="text-align: right;"> 2,000,000</td><td style="text-align: right;">1.46%</td><td style="text-align: right;">1.93%</td></tr><tr><td colspan="7" style="text-align: right;"></td></tr><tr><td>Others Not Accounted For</td><td style="text-align: right;">5,104,558</td><td style="text-align: right;">3.73%</td><td style="text-align: right;">4.18%</td><td style="text-align: right;"> 5,504,538</td><td style="text-align: right;">4.02%</td><td style="text-align: right;">5.33%</td></tr><tr><td colspan="7" style="text-align: right;"></td></tr><tr><td>Shares Out</td><td style="text-align: right;"> 136,879,352</td><td style="text-align: right;"></td><td style="text-align: right;"></td><td style="text-align: right;"> 136,879,352</td><td style="text-align: right;"></td><td style="text-align: right;"></td></tr><tr><td>Voting Rights</td><td style="text-align: right;"> 122,084,552</td><td style="text-align: right;"></td><td style="text-align: right;"></td><td style="text-align: right;"> 103,367,652</td><td style="text-align: right;"></td><td style="text-align: right;"></td></tr><tr><td colspan="7" style="text-align: right;"></td></tr><tr><td colspan="3" style="text-align: right;">Voting Rights of the Otani Family/Cos</td><td style="text-align: right;">39.47%</td><td style="text-align: right;"></td><td style="text-align: right;"></td><td style="text-align: right;">46.61%</td></tr><tr><td colspan="3" style="text-align: right;">Voting Rights of Crossholders</td><td style="text-align: right;">27.17%</td><td style="text-align: right;"></td><td style="text-align: right;"></td><td style="text-align: right;">31.31%</td></tr><tr><td colspan="3" style="text-align: right;">COMBINED TOTAL</td><td style="text-align: right;">66.64%</td><td style="text-align: right;"></td><td style="text-align: right;"></td><td style="text-align: right;">77.93%</td></tr></tbody></table><div class="content-remarks">Data from the pre-buyback shareholder register (Bloomberg, H1 yuho, etc) *Note on bank holdings: The Mizuho number was confirmable, the other two were not. Based on that I have made an assumption. The net effect does not change except that IF there are any discrepancies, it would INCREASE the percentage held by crossholders and decrease the percentage held by minorities.</div><h2>What Does This Mean?</h2>The one bulge bracket broker analyst covering the stock has had a "Neutral" since a year ago, with a Target Price at JPY 1200 against what was a closing price of JPY 1087/share at the time. The buyback took place at JPY 920/share. The price is now JPY 856/share (the chart is two days old).<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/048/090/original/8841%20Chart.png?1521876295" class="editor-image img-responsive" data-smartkarma-image-id="48090"></figure><div style="text-align: left;" class="content-caption">source: Bloomberg</div>Importantly, this "lowest price in a year" also coincides with the lowest market cap in 3yrs+ and lowest marketcap vs TOPIX Real Estate Sector Index in a similar timeframe. I have used market cap rather than price because the company has bought back so many shares in that time frame, including 15% last December.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/048/091/original/8841%20Ratio.png?1521876326" class="editor-image img-responsive" data-smartkarma-image-id="48091"></figure><div style="text-align: left;" class="content-caption">source: Bloomberg</div>And in addition to that cheapness, the company is in a strong net cash position, and its main building is approaching 50 years of age.<h2>What Next?</h2>Nine and a half years ago, the company announced that it planned to redevelop the site of the main TOC Building in West Gotanda - the so-called Tokyo Wholesale Center - in cooperation with the Tokyo metropolitan government and Shinagawa Ward, and that development might start in 2011 and be finalized within ten years. That hasn't happened. But...

In early December, I wrote about Toc Co Ltd (8841 JP)'s Bigly Buyback. On December 5th the company announced a ToSTNeT-3 buyback of up to 20 million shares, which was 16.38% of the shares outstanding. The stated reasons for the buybacks were:"The buyback is being conducted in order to improve capital efficiency given the opportunity provided by changing business environment" (or words to that effect). We have received notifications from shareholders Effissimo Capital Management Pte Ltd, Mizuho Bank, Mitsubishi-Tokyo UFJ Bank, and Mitsui-Sumitomo Bank stating their intentions to sell the shares they hold in our company. The next day, when TOC announced the results of the buyback (18,716,900 shares purchased), they said Effissimo had sold down 17,916,900 shares out of its 22,917,000 shares (officially announced a week later), leaving it with 5,000,100 shares (a 4.1% stake). That meant someone else sold exactly 800,000 shares. In fact, the announcement says that Mizuho Bank, BoT-MUFJ Bank, and Mitsui-Sumitomo Bank all sold shares. This past week, the company said it would cancel 33,000,000 treasury shares at the end of March. Shareholder Breakdown BEFORE and AFTER the BuybackBEFORE BUYBACKAFTER BUYBACKShares Held% shs out% voting rightsShares Held% shs out% voting rightsTreasury Shares14,794,80010.81% 33,511,70024.48%Effissimo Capital Management22,917,00016.74%18.77% 4,979,8643.64%4.82%New Otani Company21,251,00015.53%17.41% 21,251,00015.53%20.56%Ohtani Kosan YK13,165,0009.62%10.78% 13,165,0009.62%12.74%Otani Fund6,427,0004.70%5.26% 6,427,0004.70%6.22%Ohtani Kosan To5,734,0004.19%4.70% 5,734,0004.19%5.55%Shinryo Corp4,966,0003.63%4.07% 4,966,0003.63%4.80%Taisei Corp4,800,0003.51%3.93% 4,800,0003.51%4.64%Nippon Life2,912,0002.13%2.39% 2,912,0002.13%2.82%Ohtani Kazuhiko1,606,0001.17%1.32% 1,606,0001.17%1.55%Toei Co1,520,0001.11%1.25% 1,520,0001.11%1.47%Sanrio Co1,296,0000.95%1.06% 1,296,0000.95%1.25%OTHER CORPS14,645,30010.70%12.00% 14,645,30010.70%14.17%Mizuho Bank*2,630,0001.92%2.15% 2,230,0001.63%2.16%BOT MUFJ Bank*200,0000.15%0.16% -  0.00%0.00%Mitsui Sumitomo Bank*200,0000.15%0.16% -  0.00%0.00%Individuals not Otani Family3,710,6942.71%3.04% 3,710,6942.71%3.59%TOPIX Passive Investors 7,000,0005.11%5.73% 7,000,0005.11%6.77%Other Passive 2,000,0001.46%1.64% 2,000,0001.46%1.93%Others Not Accounted For5,104,5583.73%4.18% 5,504,5384.02%5.33%Shares Out 136,879,352 136,879,352Voting Rights 122,084,552 103,367,652Voting Rights of the Otani Family/Cos39.47%46.61%Voting Rights of Crossholders27.17%31.31%COMBINED TOTAL66.64%77.93%Data from the pre-buyback shareholder register (Bloomberg, H1 yuho, etc) *Note on bank holdings: The Mizuho number was confirmable, the other two were not. Based on that I have made an assumption. The net effect does not change except that IF there are any discrepancies, it would INCREASE the percentage held by crossholders and decrease the percentage held by minorities.What Does This Mean?The one bulge bracket broker analyst covering the stock has had a "Neutral" since a year ago, with a Target Price at JPY 1200 against what was a closing price of JPY 1087/share at the time. The buyback took place at JPY 920/share. The price is now JPY 856/share (the chart is two days old).source: BloombergImportantly, this "lowest price in a year" also coincides with the lowest market cap in 3yrs+ and lowest marketcap vs TOPIX Real Estate Sector Index in a similar timeframe. I have used market cap rather than price because the company has bought back so many shares in that time frame, including 15% last December.source: BloombergAnd in addition to that cheapness, the company is in a strong net cash position, and its main building is approaching 50 years of age.What Next?Nine and a half years ago, the company announced that it planned to redevelop the site of the main TOC Building in West Gotanda - the so-called Tokyo Wholesale Center - in cooperation with the Tokyo metropolitan government and Shinagawa Ward, and that development might start in 2011 and be finalized within ten years. That hasn't happened. But...

TOC's BIGLY Buyback Makes It a Takeout Target

Japan

DAIBIRU CORPORATION leases office buildings including apartments and hotels. The Company also provides commercial cleaning and management services through its related companies.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Daibiru Corp (8806 JP)

Mitsui OSK TOB for Daibiru (8806) Gets Loose from Its Mooring

Mitsui OSK's Tender Offer for Daibiru was low but supported by a substantial cross-held position - likely enough to get this past 2/3 IF the shares...

Travis Lundy

Mitsui OSK Tender Offer for Daibiru (8806) Subsidiary

Mitsui OSK (9104) has launched a Tender Offer to buy out minorities in real estate subsidiary Daibiru (8806). This is basically a done deal as...

Travis Lundy

TOC's BIGLY Buyback Makes It a Takeout Target

In early December, I wrote about Toc Co Ltd (8841 JP)'s Bigly Buyback. On December 5th the company announced a ToSTNeT-3 buyback of up to 20...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)