Event-Driven Investment Opportunities, Special Situation Investments

Dalius Tauraitis

Event-Driven Investment Opportunities

Special Situation Investments

Focus on event-driven trades and low risk arbitrage opportunities with short term catalysts

Event-Driven

<ul><li>TTEC Holdings received a privatization offer at $6.85/share from founder Kenneth Tuchman, contingent on financing and approvals.</li><li>TTEC's market cap is $260m with $930m debt; net debt/EBITDA is 4.5x, facing refinancing challenges.</li><li>AI is disrupting the call center industry; TTEC's AI capabilities are basic, requiring substantial tech investments.</li></ul>

TTEC Holdings received a privatization offer at $6.85/share from founder Kenneth Tuchman, contingent on financing and approvals.TTEC's market cap is $260m with $930m debt; net debt/EBITDA is 4.5x, facing refinancing challenges.AI is disrupting the call center industry; TTEC's AI capabilities are basic, requiring substantial tech investments.

TTEC Holdings Privatization Proposal Faces Financing Challenges Amid Industry Disruption and High Leverage Concerns

US/Europe Event-Driven Analyst

John DeMasi

<ul>
<li>Singapore-Based private equity firm Capital Square Partners (“CSP”) engineered combination of Aegis Global and “old” Startek in 2018 to create “new” Startek.</li>
<li>Microcap business process outsourcing ("BPO") company runs outsourced customer contact centers, has improving sales and profitability, and a declining stock price.</li>
<li>On 20December2021, CSP disclosed that it had submitted a “preliminary, non-binding proposal” to acquire all outstanding shares of SRT US not already owned by it for $5.40 per share.</li>
</ul>


Singapore-Based private equity firm Capital Square Partners (“CSP”) engineered combination of Aegis Global and “old” Startek in 2018 to create “new” Startek.
Microcap business process outsourcing ("BPO") company runs outsourced customer contact centers, has improving sales and profitability, and a declining stock price.
On 20December2021, CSP disclosed that it had submitted a “preliminary, non-binding proposal” to acquire all outstanding shares of SRT US not already owned by it for $5.40 per share.


Startek Inc. – SRT US 55% Owner Proposes $5.40 Cash Per Share Squeeze Out

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tdcx-inc" target="_blank" data-smartkarma-citation="entities:34187:1" rel="noopener">TDCX (TDCX US)</a> offers digital customer experience solutions for innovative technology and blue-chip companies and has global client base including <a href="https://www.smartkarma.com/entities/meta-platforms-inc-class-a-facebook" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Meta Platforms (Facebook) (META US)</a> and <a href="https://www.smartkarma.com/entities/airbnb-inc" target="_blank" data-smartkarma-citation="entities:431:1" rel="noopener">Airbnb Inc (ABNB US)</a> .</li>
<li>The company’s share price has dropped more than 40% since its IPO as its largest clients were negatively impacted due to the Covid-19 outbreak.</li>
<li>TDCX’s 2Q2022 earnings were strong and the company’s client acquisition strategy is paying off and the share price has moved up 60% since then.</li>
</ul>



TDCX (TDCX US) offers digital customer experience solutions for innovative technology and blue-chip companies and has global client base including Meta Platforms (Facebook) (META US) and Airbnb Inc (ABNB US) .
The company’s share price has dropped more than 40% since its IPO as its largest clients were negatively impacted due to the Covid-19 outbreak.
TDCX’s 2Q2022 earnings were strong and the company’s client acquisition strategy is paying off and the share price has moved up 60% since then.


TDCX: Attractive Growth Profile; Drop in Multiples Offer a Good Entry Point

<ul><li>Learning Technologies Group and TI Fluid Systems are engaged in merger arbitrage, with due diligence and PUSU deadlines approaching.</li><li>Embracer Group and Grifols are addressing discounts through spin-offs and potential privatizations, aiming to eliminate share class disparities.</li><li>Litigation cases for Gold Reserve and Finch Therapeutics could result in substantial financial awards, impacting share valuations significantly.</li></ul>

Learning Technologies Group and TI Fluid Systems are engaged in merger arbitrage, with due diligence and PUSU deadlines approaching.Embracer Group and Grifols are addressing discounts through spin-offs and potential privatizations, aiming to eliminate share class disparities.Litigation cases for Gold Reserve and Finch Therapeutics could result in substantial financial awards, impacting share valuations significantly.

Active Merger Arbitrage and Litigation Opportunities: Key Insights on Current Financial Market

<ul><li>Embracer Group faces a 20%-50% conglomerate discount, with potential catalysts including spinoffs and increased LOTR franchise awareness.</li><li>DMC Global's strategic review concluded without a sale; business performance is weaker, impacting Arcadia Products and DynaEnergetics.</li><li>Martin Midstream Partners' acquisition by its GP at $4.02/share faces activist opposition, risking a deal collapse.</li></ul>

Embracer Group faces a 20%-50% conglomerate discount, with potential catalysts including spinoffs and increased LOTR franchise awareness.DMC Global's strategic review concluded without a sale; business performance is weaker, impacting Arcadia Products and DynaEnergetics.Martin Midstream Partners' acquisition by its GP at $4.02/share faces activist opposition, risking a deal collapse.

SSI Newsletter Highlights: Merger Arbitrage, Strategic Reviews, and Activist Investor Developments

United States

TTEC Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides customer engagement, experience consulting, care, and technology solutions. TTEC Holdings serves customers worldwide.

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TTEC Holdings (TTEC US)

TTEC Holdings Privatization Proposal Faces Financing Challenges Amid Industry Disruption and High Leverage Concerns

TTEC Holdings received a privatization offer at $6.85/share from founder Kenneth Tuchman, contingent on financing and approvals.

Special Situation Investments

TDCX: Attractive Growth Profile; Drop in Multiples Offer a Good Entry Point

Though TDCX's share price has moved up over the last three weeks, there is further upside as the company's client acquisition has started paying...

Shifara Samsudeen, ACMA, CGMA

Active Merger Arbitrage and Litigation Opportunities: Key Insights on Current Financial Market

Learning Technologies Group and TI Fluid Systems are engaged in merger arbitrage, with due diligence and PUSU deadlines approaching.

Special Situation Investments

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TTEC Holdings Privatization Proposal Faces Financing Challenges Amid Industry Disruption and High Leverage Concerns

TTEC Holdings received a privatization offer at $6.85/share from founder Kenneth Tuchman, contingent on financing and approvals.

Special Situation Investments

Startek Inc. – SRT US 55% Owner Proposes $5.40 Cash Per Share Squeeze Out

Dirt-cheap microcap whose 55% owner wants to take private on the cheap. Shares offer 27% upside to proposed buyout price and more upside if special...

John DeMasi

TDCX: Attractive Growth Profile; Drop in Multiples Offer a Good Entry Point

Though TDCX's share price has moved up over the last three weeks, there is further upside as the company's client acquisition has started paying...

Shifara Samsudeen, ACMA, CGMA

Active Merger Arbitrage and Litigation Opportunities: Key Insights on Current Financial Market

Learning Technologies Group and TI Fluid Systems are engaged in merger arbitrage, with due diligence and PUSU deadlines approaching.

Special Situation Investments

SSI Newsletter Highlights: Merger Arbitrage, Strategic Reviews, and Activist Investor Developments

Embracer Group faces a 20%-50% conglomerate discount, with potential catalysts including spinoffs and increased LOTR franchise awareness.

Special Situation Investments