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

TOC's BIGLY Buyback Makes It a Takeout Target

Quiddity Advisors

Event-Driven

13 months ago, real estate operator <a href="https://www.smartkarma.com/entities/12698" target="_blank" data-smartkarma-citation="entities:12698:1">TOC Co Ltd (8841 JP)</a> -  known for decades in Tokyo as the owner/operator of the largest single building in Tokyo by floor space - launched a Tender Offer to buy up to 20mm shares or 16.4% of the shares outstanding. Effissimo, Mizuho Bank, Mitsubishi UFJ Bank, and Mitsui Sumitomo Bank had each apparently approached the company indicating they were interested in selling. The Tender Offer resulted in Effissimo selling 17,916,900 shares, leaving them with 4.599mm shares. Combined, other parties sold 800,000 shares. On the 21st of March 2018, TOC announced it would cancel 33 million shares out (they already had ~14mm shares of Treasury stock prior to launching the Tender Offer). Later they launched another buyback program and the company has 1.847mm shares of Treasury stock as of now, out of 103.88mm shares outstanding. I wrote about these events last year in <a href="https://www.smartkarma.com/insights/toc-s-8841-jp-bigly-buyback" target="_blank" data-smartkarma-citation="insights:15906">TOC's (8841 JP) BIGLY Buyback</a> and <a href="https://www.smartkarma.com/insights/toc-s-bigly-buyback-makes-it-a-takeout-target" target="_blank" data-smartkarma-citation="insights:18711">TOC's BIGLY Buyback Makes It a Takeout Target</a>.<h2>The New News</h2>Yesterday after the close, the company announced a ToSTNeT-3 Buyback this morning, to buy up to 4.6 million shares or 4.49% of shares outstanding at ¥778/share. That makes the previous argument stronger, not weaker. To not reinvent the wheel, the <a href="https://www.smartkarma.com/insights/toc-s-bigly-buyback-makes-it-a-takeout-target" target="_blank">second insight</a> is the one with the deep dive information about the company and its assets. A review of the opportunity continues below.

13 months ago, real estate operator TOC Co Ltd (8841 JP) -  known for decades in Tokyo as the owner/operator of the largest single building in Tokyo by floor space - launched a Tender Offer to buy up to 20mm shares or 16.4% of the shares outstanding. Effissimo, Mizuho Bank, Mitsubishi UFJ Bank, and Mitsui Sumitomo Bank had each apparently approached the company indicating they were interested in selling. The Tender Offer resulted in Effissimo selling 17,916,900 shares, leaving them with 4.599mm shares. Combined, other parties sold 800,000 shares. On the 21st of March 2018, TOC announced it would cancel 33 million shares out (they already had ~14mm shares of Treasury stock prior to launching the Tender Offer). Later they launched another buyback program and the company has 1.847mm shares of Treasury stock as of now, out of 103.88mm shares outstanding. I wrote about these events last year in TOC's (8841 JP) BIGLY Buyback and TOC's BIGLY Buyback Makes It a Takeout Target.The New NewsYesterday after the close, the company announced a ToSTNeT-3 Buyback this morning, to buy up to 4.6 million shares or 4.49% of shares outstanding at ¥778/share. That makes the previous argument stronger, not weaker. To not reinvent the wheel, the second insight is the one with the deep dive information about the company and its assets. A review of the opportunity continues below.

Another Semi-BIGLY Buyback at TOC: STILL an MBO Candidate

Toc Co Ltd

Another Semi-BIGLY Buyback at TOC: STILL an MBO Candidate