Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst with experience in fundamental and event-driven research in Frontier and Emerging markets. 

On Smartkarma, I mainly publish insights on index flow events in the Asia-Pacific region. This includes predicting regular and intra-review index changes and estimating upcoming passive flows. I also cover special situations such as mergers & acquisitions, equity offerings, buybacks, and other corporate restructuring events.

Pan-Asia Index Flows & Special Situations

Fubon Financial Offer for Jih Sun Gets Even Weirder

Fubon Financial Deal for Jih Sun Gets TFTC Signoff

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

On 30th October 2020, Shinsei Bank announced a <a href="https://pdf.irpocket.com/C8303/BYOH/X23a/UgsZ.pdf" target="_blank" rel="noopener">Mandatory Share Sale Request</a> to squeeze out minority shareholders from their 93%+-owned subsidiary, Tokyo-based non-bank consumer finance company <a href="https://www.smartkarma.com/entities/aplus-financial-co-ltd" target="_blank" data-smartkarma-citation="entities:4184:1" rel="noopener">Aplus Financial (8589 JP)</a> in an ¥8.8bn (~US$ 84mn) all-cash squeezeout. It is stated in the Deal Announcement that since the outline of the new market classification on the Tokyo Stock Exchange was announced in February 2020, Shinsei Bank has been considering methods to respond to these changes. This is most probably because it would have been difficult to comply with the new requirements especially due to the very low free float percentage of Aplus Financial. In June 2020, Shinsei Bank began concrete studies on making Aplus Financial a wholly owned subsidiary and taking the company private.Furthermore, according to the Announcement, Shinsei Bank first proposed ¥66/share on 12th August 2020. This was later raised to ¥80/share on 14th October 2020 and after another round of negotiations with the special committee appointed for the purpose of this Transaction, a Deal was agreed at a consideration of ¥85/share on 30th October 2020. Following this, Aplus Financial passed a resolution to approve the Mandatory Share Sale Request at its Board meeting held on the same day. As always, there is more below the fold.

On 30th October 2020, Shinsei Bank announced a Mandatory Share Sale Request to squeeze out minority shareholders from their 93%+-owned subsidiary, Tokyo-based non-bank consumer finance company Aplus Financial (8589 JP) in an ¥8.8bn (~US$ 84mn) all-cash squeezeout. It is stated in the Deal Announcement that since the outline of the new market classification on the Tokyo Stock Exchange was announced in February 2020, Shinsei Bank has been considering methods to respond to these changes. This is most probably because it would have been difficult to comply with the new requirements especially due to the very low free float percentage of Aplus Financial. In June 2020, Shinsei Bank began concrete studies on making Aplus Financial a wholly owned subsidiary and taking the company private.Furthermore, according to the Announcement, Shinsei Bank first proposed ¥66/share on 12th August 2020. This was later raised to ¥80/share on 14th October 2020 and after another round of negotiations with the special committee appointed for the purpose of this Transaction, a Deal was agreed at a consideration of ¥85/share on 30th October 2020. Following this, Aplus Financial passed a resolution to approve the Mandatory Share Sale Request at its Board meeting held on the same day. As always, there is more below the fold. 

Aplus Financial (8589 JP) Minority Squeeze-Out: Done Deal. Short-Term Arb.