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

Effissimo, Sanken, and Allegro - Thinking About the Future

Sanken (6707)| Attractive for Activists and Growth Investors

Quiddity Advisors

Event-Driven

<p>Effissimo Capital Management today after the close announced it would launch a partial Tender Offer to purchase up to 4,834,343 shares of <a href="https://www.smartkarma.com/entities/sanken-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:6073:1" rel="noopener">Sanken Electric (6707 JP)</a> to take it from 9.97% to 30.00%. </p><p>It was non-solicited, and Effissimo did not contact the company about it, but the Tender Offer is being presented as very friendly, and only conducted so as to make it more efficient to buy a large volume of stock. </p><p>The Tender Offer is priced at ¥5,205/share - a 17.1% premium to last - and will start 9 February 2021 and go for 30 business days, ending on 24 March 2021.</p><p>Effissimo first showed up on the shareholder register with a large shareholder filing on 19 December 2018 showing a 5.06% position. It reported larger positions in May, June, then July 2019 to get to 9.58%. Their position has always been for the purpose of 純投資 or "pure investment". We do not know Effissimo's in-price, but looking at the chart below, we can suppose it is probably in the ¥2,000-2,500/share range.</p><section class="figure"></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/187/436/original/Screenshot+2021-02-08+at+7.16.40+PM.png?1612783058" class="editor-image img-responsive" data-smartkarma-image-id="187436"></figure><p></p></section><p>Another activist (Oasis) showed up in November 2019 with a 5+% position, with a purpose of "portfolio investment making important proposals", and they upped their stake in February last year to a 6.47% position. It looks like their average is in the ¥2,500-3,000/share range.</p><p>This is going to be interesting. </p><p>So we have analysis, and Ye Olde Arbe Grids below.</p>

Effissimo Capital Management today after the close announced it would launch a partial Tender Offer to purchase up to 4,834,343 shares of Sanken Electric (6707 JP) to take it from 9.97% to 30.00%. It was non-solicited, and Effissimo did not contact the company about it, but the Tender Offer is being presented as very friendly, and only conducted so as to make it more efficient to buy a large volume of stock. The Tender Offer is priced at ¥5,205/share - a 17.1% premium to last - and will start 9 February 2021 and go for 30 business days, ending on 24 March 2021.Effissimo first showed up on the shareholder register with a large shareholder filing on 19 December 2018 showing a 5.06% position. It reported larger positions in May, June, then July 2019 to get to 9.58%. Their position has always been for the purpose of 純投資 or "pure investment". We do not know Effissimo's in-price, but looking at the chart below, we can suppose it is probably in the ¥2,000-2,500/share range.Another activist (Oasis) showed up in November 2019 with a 5+% position, with a purpose of "portfolio investment making important proposals", and they upped their stake in February last year to a 6.47% position. It looks like their average is in the ¥2,500-3,000/share range.This is going to be interesting. So we have analysis, and Ye Olde Arbe Grids below.

Effissimo Launches Unsolicited/Hostile Partial Tender On Sanken Electric