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

Hazama Ando (1719 JP) - Big Buyback Is Set & Forget

Nishimatsu Construction (1820) About to Do Its Last Buyback for a While, and You Can't Participate!

Sanshin Electronics (8150 JP) BIG Buyback Tender - Not Designed For You

Quiddity Advisors

Equity Bottom-Up

Nishimatsu Construction Co / Equity Bottom-Up

One month ago, <a href="https://www.smartkarma.com/entities/nishimatsu-construction-co" target="_blank" data-smartkarma-citation="entities:9945:1" rel="noopener">Nishimatsu Construction Co (1820 JP)</a> launched a Tender Offer to buy back 27.42% of shares out in an Own Share Tender Offer. 
The primary goal, of course - as it often seems to be in own share tender offers in Japan which are conducted around market price - was to have the company rid itself of the Murakami-related shareholders while "returning capital to shareholders and raising ROE."
They were aiming to buy back 15 million shares. They got offers to buy back 21.1 million shares. 
I discussed the situation in <a href="https://www.smartkarma.com/insights/nishimatsu-construction-1820-about-to-do-its-last-buyback-for-a-while-and-you-can-t-participate" target="_blank" data-smartkarma-citation="insights:57918" rel="noopener">Nishimatsu Construction (1820) About to Do Its Last Buyback for a While, and You Can't Participate!</a> when it was announced. 
The deal was announced at a relatively high price - near a 20yr high - and the shares stayed in place during the deal. 
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The results announced yesterday after the close were interesting. 
I had suggested that as many as 20.5mm shares could tender against the 15mm share buy. It turns out to have been 21.11mm shares tendered, which means that pro-ration was only 71%. 
The Deemed Dividend, which made this entire situation quasi un-investable for foreign shareholders, came out at ¥2,856.63 I am told (I had my ballpark guesstimate at ¥2,786-2,846 which is close enough for horseshoes and hand grenades and Deemed Dividend guesstimates).
And the results tell you some interesting things. More below.

One month ago, Nishimatsu Construction Co (1820 JP) launched a Tender Offer to buy back 27.42% of shares out in an Own Share Tender Offer. 
The primary goal, of course - as it often seems to be in own share tender offers in Japan which are conducted around market price - was to have the company rid itself of the Murakami-related shareholders while "returning capital to shareholders and raising ROE."
They were aiming to buy back 15 million shares. They got offers to buy back 21.1 million shares. 
I discussed the situation in Nishimatsu Construction (1820) About to Do Its Last Buyback for a While, and You Can't Participate! when it was announced. 
The deal was announced at a relatively high price - near a 20yr high - and the shares stayed in place during the deal. 






The results announced yesterday after the close were interesting. 
I had suggested that as many as 20.5mm shares could tender against the 15mm share buy. It turns out to have been 21.11mm shares tendered, which means that pro-ration was only 71%. 
The Deemed Dividend, which made this entire situation quasi un-investable for foreign shareholders, came out at ¥2,856.63 I am told (I had my ballpark guesstimate at ¥2,786-2,846 which is close enough for horseshoes and hand grenades and Deemed Dividend guesstimates).
And the results tell you some interesting things. More below.

Nishimatsu Construction - Tender Completed, Overhang Commences