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

Hexaware Technologies Reverse Book Build Auction - It's On

Hexaware Delisting Proposal - This Could Go Higher

Hexaware Exit Offer Reverse Book Build Gets 90% & Discovered Price - Now We Wait

New SEBI Rules on Multi-Cap Funds Adds Buying Pressure to Small-Mid Caps

Quiddity Advisors

Event-Driven

This morning, Baring - the Bidder for <a href="https://www.smartkarma.com/entities/hexaware-technologies-ltd" target="_blank" data-smartkarma-citation="entities:7882:1" rel="noopener">Hexaware Technologies (HEXW IN)</a> (also known as HT Global IT Solutions Holdings Limited) announced that they had accepted the Discovered Price of Rs. 475/share. <div class="content-remarks">Those who followed Smartkarma advice and bought the week after shares jumped to limit up on Day1 earned a return of about 50% in USD terms (48% in INR terms and about 2.5% in the FX cross).</div>The Acquirer will now purchase 87,286,523 shares - 91.16% of the fully paid up capital - which is the number of shares validly tendered at or below the Discovered Price in the Reverse Book Build portion of the Delisting Offer. Shares accepted will have the consideration paid on or before 30 September 2020. Section 20 of the <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/486ec4be-8eea-4549-8302-90ab70254072.pdf" target="_blank" rel="noopener">Letter of Offer</a> published on 6 September suggests payment on 29 September 2020 though the amended schedule published 15 September makes it 30 September. Those shares which have not been taken up, which should amount to just under 2.3mm shares, will be returned to shareholders as per Paragraph 17 of the <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/486ec4be-8eea-4549-8302-90ab70254072.pdf" target="_blank" rel="noopener">Letter of Offer</a> published on 6 September, and Section 20 of the same document, <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/D937142A-F84B-40FD-83B4-92443D696743-202611.pdf" target="_blank" rel="noopener">as amended on 15 September</a>, suggests that shares will be returned to investors on the 30th. That leaves 8.84% of the company in limbo. The shares will be delisted on a date to be announced later. Expect it to be in the not distant future. There will be a process for a subsequent Exit Offer.  That means there will be a residual opportunity to trade the risk arb for about 26.5mm shares worth about US$170mm at terms.More below the fold.

This morning, Baring - the Bidder for Hexaware Technologies (HEXW IN) (also known as HT Global IT Solutions Holdings Limited) announced that they had accepted the Discovered Price of Rs. 475/share. Those who followed Smartkarma advice and bought the week after shares jumped to limit up on Day1 earned a return of about 50% in USD terms (48% in INR terms and about 2.5% in the FX cross).The Acquirer will now purchase 87,286,523 shares - 91.16% of the fully paid up capital - which is the number of shares validly tendered at or below the Discovered Price in the Reverse Book Build portion of the Delisting Offer. Shares accepted will have the consideration paid on or before 30 September 2020. Section 20 of the Letter of Offer published on 6 September suggests payment on 29 September 2020 though the amended schedule published 15 September makes it 30 September. Those shares which have not been taken up, which should amount to just under 2.3mm shares, will be returned to shareholders as per Paragraph 17 of the Letter of Offer published on 6 September, and Section 20 of the same document, as amended on 15 September, suggests that shares will be returned to investors on the 30th. That leaves 8.84% of the company in limbo. The shares will be delisted on a date to be announced later. Expect it to be in the not distant future. There will be a process for a subsequent Exit Offer.  That means there will be a residual opportunity to trade the risk arb for about 26.5mm shares worth about US$170mm at terms.More below the fold.

Hexaware Tech Done at INR 475. Now For The Residual