Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>If <strong><a href="https://www.smartkarma.com/entities/bhp-group-ltd" target="_blank" data-smartkarma-citation="entities:147:1" rel="noopener">BHP Group (BHP AU)</a></strong> announces an off-market buyback, there will be demand to replace the shares bought back, re-based higher.</li>
<li>
<strong><a href="https://www.smartkarma.com/entities/bank-of-east-asia-ltd" target="_blank" data-smartkarma-citation="entities:341:1" rel="noopener">Bank of East Asia (23 HK)</a></strong>is trading cheap as Elliott throws in the towel.</li>
<li>The <strong><a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a></strong> selldown could be larger than people expect, and it is a decent chance to put on the arb trade. </li>
</ul>


If BHP Group (BHP AU) announces an off-market buyback, there will be demand to replace the shares bought back, re-based higher.

Bank of East Asia (23 HK)is trading cheap as Elliott throws in the towel.
The Sydney Airport (SYD AU) selldown could be larger than people expect, and it is a decent chance to put on the arb trade. 


Last Week in Event SPACE: BHP, Bank Of East Asia, Sydney Airport, Boral

Travis Lundy

<ul>
<li>Sojitz and JAL have announced the start of their tender offer for <a href="https://www.smartkarma.com/entities/jalux-inc" target="_blank" data-smartkarma-citation="entities:4339:1" rel="noopener">Jalux Inc (2729 JP)</a>. There was no surprise in November. And no change in the interim.</li>
<li>While not outrageously generous, it is not particularly egregious to minority shareholders and the shareholder structure suggests it gets done easily. </li>
<li>The lack of Japan FTC approval prior to launch is a little odd, but there should be minimal risk, and practically speaking, zero incremental risk vs waiting to start.</li>
</ul>


Sojitz and JAL have announced the start of their tender offer for Jalux Inc (2729 JP). There was no surprise in November. And no change in the interim.
While not outrageously generous, it is not particularly egregious to minority shareholders and the shareholder structure suggests it gets done easily. 
The lack of Japan FTC approval prior to launch is a little odd, but there should be minimal risk, and practically speaking, zero incremental risk vs waiting to start.


JALUX (2729 JP) Tender Offer Commences - Open & Shut Case With Weirdness

<div>
<p>This insight provides a quick summary of gross/annualised (where possible) spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and how those spreads have changed over the last week; plus the next hard events over the coming weeks.</p>
</div>
<div>
<p>I number 49, mostly firm, deals around the region.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


This insight provides a quick summary of gross/annualised (where possible) spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and how those spreads have changed over the last week; plus the next hard events over the coming weeks.


I number 49, mostly firm, deals around the region.


More below the fold.


Asia-Pac Weekly Risk Arb Summary: Afterpay, Link Admin, Razer, AusNet, First Service

<p>Today after the close, <a href="https://www.smartkarma.com/entities/sojitz-corp" target="_blank" data-smartkarma-citation="entities:14437:1" rel="noopener">Sojitz Corp (2768 JP)</a> and <a href="https://www.smartkarma.com/entities/japan-airlines-co-ltd" target="_blank" data-smartkarma-citation="entities:1184:1" rel="noopener">Japan Airlines (9201 JP)</a> together announced they had created an entity to buy out minorities in <a href="https://www.smartkarma.com/entities/jalux-inc" target="_blank" data-smartkarma-citation="entities:4339:1" rel="noopener">Jalux Inc (2729 JP)</a>, which operates in the aircraft and airport ground equipment servicing businesses, and airline servicing businesses such as onboard mail order sales and merchandising, and the F&amp;B business related to servicing airlines. Sojitz already owns 22.22% and JAL owns 21.56%, and <strong>Japan Airport Terminal</strong> owns 8.08%. Minorities own 48.14%. </p><p>The goal is to take the company private, buying at least 1.8741mm shares from the minorities to get to two-thirds plus a share.</p><p>Given that everyone has basically always known this was going to happen, the minimum for success is less than one-third of the minority, the airline industry is doing badly, and the price is a 50% premium to last (and given the impact of covid-19 it does not seem patently offensive), I expect this gets done easily. A 50% premium is pretty juicy.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/239/249/original/Screenshot+2021-11-02+at+6.11.40+PM.png?1635847923" class="editor-image img-responsive" data-smartkarma-image-id="239249"></figure><p></p></section><p>But a deal is a deal and there are deal details to scrutinise so we do so below. </p>

Today after the close, Sojitz Corp (2768 JP) and Japan Airlines (9201 JP) together announced they had created an entity to buy out minorities in Jalux Inc (2729 JP), which operates in the aircraft and airport ground equipment servicing businesses, and airline servicing businesses such as onboard mail order sales and merchandising, and the F&amp;B business related to servicing airlines. Sojitz already owns 22.22% and JAL owns 21.56%, and Japan Airport Terminal owns 8.08%. Minorities own 48.14%. The goal is to take the company private, buying at least 1.8741mm shares from the minorities to get to two-thirds plus a share.Given that everyone has basically always known this was going to happen, the minimum for success is less than one-third of the minority, the airline industry is doing badly, and the price is a 50% premium to last (and given the impact of covid-19 it does not seem patently offensive), I expect this gets done easily. A 50% premium is pretty juicy.But a deal is a deal and there are deal details to scrutinise so we do so below. 

Sojitz and JAL to Buy Out JALUX Minorities in Tender Offer

Japan

JALUX Inc., sells aviation related products. The Company's products include aircraft, aircraft parts, aircraft fuel, cabin service supply, in-flight sales, mail order shopping, and liquors. Jalux also operates BLUE SKY airport stores.

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