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

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Japan Metropolitan Fund Investment Corporation / Event-Driven

Japan Metropolitan Fund Investment Corporation (8953 JP)

Japan Metropolitan Fund Investment Corporation

On 28th August 2020, J-REITs <a href="https://www.smartkarma.com/entities/japan-retail-fund-investment" target="_blank" data-smartkarma-citation="entities:735:1" rel="noopener">Japan Retail Fund Investment (8953 JP)</a> ("JRF") and <a href="https://www.smartkarma.com/entities/mcubs-midcity-investment-cor" target="_blank" data-smartkarma-citation="entities:13197:1" rel="noopener">Mcubs Midcity Investment Cor (3227 JP)</a> ("MMI") announced an absorption-type <a href="https://www.midcity-reit.com/english/i36ilc0000002hdz-att/20200828_Investor_Presentation_for_the_Merger_e.pdf" target="_blank" rel="noopener">Merger</a> which is expected to form the largest diversified J-REIT based on current asset values.JRF will be the surviving corporation and MMI will be the dissolving corporation in the merger. The newly formed combined entity will be named Japan Metropolitan Fund Investment Corporation (JMF).The exchange ratio for the transaction has been set at 0.5 JRF Shares per MMI Share. The Deal is conditional on receiving approval from the shareholders of both the Target and the Acquirer. Both shareholder meetings are expected to take place in October 2020 and the Deal is expected to complete in March 2021. At the time of writing, MMI shares are trading through Terms optically but because of a dividend payment differential between now and the merger, the spread is trading at a little under 1% annualised as I type. More below.

On 28th August 2020, J-REITs Japan Retail Fund Investment (8953 JP) ("JRF") and Mcubs Midcity Investment Cor (3227 JP) ("MMI") announced an absorption-type Merger which is expected to form the largest diversified J-REIT based on current asset values.JRF will be the surviving corporation and MMI will be the dissolving corporation in the merger. The newly formed combined entity will be named Japan Metropolitan Fund Investment Corporation (JMF).The exchange ratio for the transaction has been set at 0.5 JRF Shares per MMI Share. The Deal is conditional on receiving approval from the shareholders of both the Target and the Acquirer. Both shareholder meetings are expected to take place in October 2020 and the Deal is expected to complete in March 2021. At the time of writing, MMI shares are trading through Terms optically but because of a dividend payment differential between now and the merger, the spread is trading at a little under 1% annualised as I type. More below.

MCUBS Midcity (3227 JP): Scrip Deal Trading Tight But There's a BETTER Trade