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

Polatechno (4239 JP) TOB - Big Premium, Done Deal

Quiddity Advisors

Event-Driven

Yesterday after the close of trading, <a href="https://www.smartkarma.com/entities/nippon-kayaku-co-ltd" target="_blank" data-smartkarma-citation="entities:6971:1" rel="noopener">Nippon Kayaku (4272 JP)</a>, which owns 66.5% of smallcap polarizing film maker <a href="https://www.smartkarma.com/entities/polatechno-co-ltd" target="_blank" data-smartkarma-citation="entities:19636:1" rel="noopener">Polatechno (4239 JP)</a>, announced a Tender Offer at a 90+% premium to take over the remaining shares of Polatechno. The Tender Offer's success is contingent on 22.38% (i.e. 66.7% of the minority tendering. That success is easily achieved as <a href="https://www.smartkarma.com/entities/arisawa-mfg-co-ltd" target="_blank" data-smartkarma-citation="entities:18028:1" rel="noopener">Arisawa Mfg (5208 JP)</a> happens to own exactly 22.38% of Polatechno and said that it <a href="http://www.arisawa.co.jp/jp/ir/news/data/201908271JP.pdf" target="_blank" rel="noopener">intended to tender the shares</a>, and sell them for ¥9.215 billion. That is a fair bit of change for a ¥31.3bn company. The company simultaneously announced a forecast revision downwards because of lower equity affiliate income going forward. To offset equity weakness going forward, they also <a href="http://www.arisawa.co.jp/jp/ir/news/data/201908272JP.pdf" target="_blank" rel="noopener">announced</a> a stock buyback. For 10% of the company. The stock is up 11% this morning as a result.If you are into small caps, or you own it, or are interested in Japan activism, it is worth a look.

Yesterday after the close of trading, Nippon Kayaku (4272 JP), which owns 66.5% of smallcap polarizing film maker Polatechno (4239 JP), announced a Tender Offer at a 90+% premium to take over the remaining shares of Polatechno. The Tender Offer's success is contingent on 22.38% (i.e. 66.7% of the minority tendering. That success is easily achieved as Arisawa Mfg (5208 JP) happens to own exactly 22.38% of Polatechno and said that it intended to tender the shares, and sell them for ¥9.215 billion. That is a fair bit of change for a ¥31.3bn company. The company simultaneously announced a forecast revision downwards because of lower equity affiliate income going forward. To offset equity weakness going forward, they also announced a stock buyback. For 10% of the company. The stock is up 11% this morning as a result.If you are into small caps, or you own it, or are interested in Japan activism, it is worth a look. 

Arisawa (5208) Activism:  Biggish Buyback, But Lots More Potential Behind