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

MYOB Caves And Agrees To KKR's Reduced Offer

Friday Deadline Looms As MYOB Snubs KKR's Reduced Offer

Quiddity Advisors

Event-Driven

Originally I had thought KKR's offer could go higher. Instead, it came in lower at A$3.40 and KKR gave <a href="https://www.smartkarma.com/entities/374" target="_blank" data-smartkarma-citation="entities:374:1">MYOB Group Ltd (MYO AU)</a> management all of a couple of days to think about it.The title to my subsequent piece was <a href="https://www.smartkarma.com/insights/myob-caves-and-agrees-to-kkr-s-reduced-offer" target="_blank" data-smartkarma-citation="insights:26907">MYOB Caves And Agrees To KKR's Reduced Offer</a>.Manikay Partners started buying up shares and by early March had reached a position of 11%. They made noise. The <a href="https://www.asx.com.au/asxpdf/20190314/pdf/443gft6383mfmn.pdf" target="_blank">Scheme Booklet</a> came out on the 14th of March. Four days later Manikay <a href="https://www.asx.com.au/asxpdf/20190318/pdf/443kmkqsjk1kfb.pdf" target="_blank">announced</a> their position was now 13.61% and the following day Mawer <a href="https://www.asx.com.au/asxpdf/20190319/pdf/443ll35dbqsl07.pdf" target="_blank">announced</a> re-upped its stake from the mid 8s to high 9% level.The 20th saw a Scheme Update from MYO <a href="https://www.asx.com.au/asxpdf/20190320/pdf/443ms6c1cprhgb.pdf" target="_blank">announcing</a> receipt of a letter from KKR saying that the A$3.40 price was their "best and final offer", making it clear under Truth in Takeovers language that Manikay was not going to get a higher price out of them.Manikay continued to buy shares on the 20th and the 21st, getting to 16.16% of the company as <a href="https://www.asx.com.au/asxpdf/20190322/pdf/443ps2l2nqblph.pdf" target="_blank">filed</a> on the 22nd.On Monday 1 April, MYOB <a href="https://www.asx.com.au/asxpdf/20190401/pdf/443y4rfq9y89ps.pdf" target="_blank">announced</a> a supplemental disclosure to the Scheme documents noting KKR's final intention, and that the directors continued to unanimously recommend the Scheme.Today we have new news.<h2>Manikay Caves and Agrees to KKR's Reduced (Now Final) Offer</h2>Earlier today a Reuters story about Manikay accepting the offer popped up and MYOB shares popped from A$3.34 to A$3.38-39 area where they closed. Partway through the day MYOB released a document on the ASX feed saying that Manikay had sent a letter saying...<blockquote>
In order avoid speculation regarding our voting intentions in respect of the Scheme, we are writing to inform you that we, Manikay Partners, intend to vote all the MYOB shares that we own or control FOR the upcoming Scheme, subject to there being no proposal that we consider to be superior prior to the vote.
We remain very disappointed that, despite our repeated efforts to convince you otherwise, you failed to change your recommendation in light of the material improvement in market conditions since announcement of the Scheme, among other factors. We are also disappointed that the disclosures to MYOB shareholders did not fully explain the impact of such improved market conditions on the value of MYOB. excerpt of the <a href="https://www.asx.com.au/asxpdf/20190403/pdf/4440rpnhq589bj.pdf" target="_blank">letter</a>.
</blockquote>

Originally I had thought KKR's offer could go higher. Instead, it came in lower at A$3.40 and KKR gave MYOB Group Ltd (MYO AU) management all of a couple of days to think about it.The title to my subsequent piece was MYOB Caves And Agrees To KKR's Reduced Offer.Manikay Partners started buying up shares and by early March had reached a position of 11%. They made noise. The Scheme Booklet came out on the 14th of March. Four days later Manikay announced their position was now 13.61% and the following day Mawer announced re-upped its stake from the mid 8s to high 9% level.The 20th saw a Scheme Update from MYO announcing receipt of a letter from KKR saying that the A$3.40 price was their "best and final offer", making it clear under Truth in Takeovers language that Manikay was not going to get a higher price out of them.Manikay continued to buy shares on the 20th and the 21st, getting to 16.16% of the company as filed on the 22nd.On Monday 1 April, MYOB announced a supplemental disclosure to the Scheme documents noting KKR's final intention, and that the directors continued to unanimously recommend the Scheme.Today we have new news.Manikay Caves and Agrees to KKR's Reduced (Now Final) OfferEarlier today a Reuters story about Manikay accepting the offer popped up and MYOB shares popped from A$3.34 to A$3.38-39 area where they closed. Partway through the day MYOB released a document on the ASX feed saying that Manikay had sent a letter saying...
In order avoid speculation regarding our voting intentions in respect of the Scheme, we are writing to inform you that we, Manikay Partners, intend to vote all the MYOB shares that we own or control FOR the upcoming Scheme, subject to there being no proposal that we consider to be superior prior to the vote.
We remain very disappointed that, despite our repeated efforts to convince you otherwise, you failed to change your recommendation in light of the material improvement in market conditions since announcement of the Scheme, among other factors. We are also disappointed that the disclosures to MYOB shareholders did not fully explain the impact of such improved market conditions on the value of MYOB. excerpt of the letter.


Manikay Caves and Accepts KKR's Reduced (And Now Final) Offer