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

Nittoc Construction (1929 JP) Partial Tender: Part II The Arb Grids

Quiddity Advisors

Event-Driven

<p>Friday after the close, lead <strong><a href="https://www.smartkarma.com/entities/9992" target="_blank" data-smartkarma-citation="entities:9992:1">Nittoc Construction (1929 JP)</a></strong> shareholder <strong>AN Holdings</strong> (a subsidiary of Asō Corp (a privately held company operating in construction and similar domains, long linked to the family of former Japanese Prime Minister Tarō Asō, with his nephew currently serving as president of the company)) announced a Partial Tender Offer for the reasonably-well-known public works construction company.</p>
<p>Asō Corp through AN Holdings bought their initial stake of 10 million shares from <a href="https://www.smartkarma.com/entities/3850" target="_blank" data-smartkarma-citation="entities:3850:1">Fudo Tetra Corp (1813 JP)</a> at ¥400 in October 2013, obtaining a 22.77% stake. Just after the tender offer was completed, they purchased another 1,073,800 shares in the market lifting their stake to 26.01%. In March 2015, AN Holdings launched another tender offer at ¥590/share which took them to 15,371,800 shares. They then bought additional shares from Q2 2016 for the next three quarters (through Q1 2017) to get to the current position of 17,371,000 shares or 39.55% of shares outstanding. AN Holdings has one director on the board.</p>
<p>The Partial Tender Offer is for 6,783,810 shares at ¥780/share, which if completely successful will lift their stake from 41.65% of voting rights to 57.91%. There is no minimum.</p>
<div>
<table class="table table-striped">
<tbody>
<tr>
<td colspan="4">
<h2>Tender Offer Details</h2>
</td>
</tr>
<tr>
<td><strong>Situation</strong></td>
<td style="text-align: right;"><strong>Shares</strong></td>
<td style="text-align: right;"><strong>% of Shares Out</strong></td>
<td style="text-align: right;"><strong>% of Shares Out<br>ex-Tsy</strong></td>
</tr>
<tr>
<td>AN Holdings KK Owns Now</td>
<td style="text-align: right;">17,371,000</td>
<td style="text-align: right;">39.55%</td>
<td style="text-align: right;">41.65%</td>
</tr>
<tr>
<td>Treasury Shares (as of 30-June-2018 (end of Q3))</td>
<td style="text-align: right;">2,207,106</td>
<td style="text-align: right;">5.02%</td>
<td style="text-align: right;">n/a</td>
</tr>
<tr>
<td>Shares Outstanding</td>
<td style="text-align: right;">43,919,291</td>
<td style="text-align: right;">100.00%</td>
<td style="text-align: right;"></td>
</tr>
<tr>
<td>Shares Outstanding ex-Treasury</td>
<td style="text-align: right;">41,712,185</td>
<td style="text-align: right;">100.00%</td>
<td style="text-align: right;"></td>
</tr>
<tr>
<td colspan="4" style="text-align: right;"></td>
</tr>
<tr>
<td><strong>Tender Minimum</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;"><strong>0</strong></td>
<td style="text-align: right;"></td>
</tr>
<tr>
<td><strong>Tender Maximum</strong></td>
<td style="text-align: right;">6,783,810</td>
<td style="text-align: right;"><strong>15.44%</strong></td>
<td style="text-align: right;"><strong>16.26%</strong></td>
</tr>
<tr>
<td colspan="4"></td>
</tr>
<tr>
<td colspan="2">Tender Offer Price</td>
<td colspan="2" style="text-align: center;">¥780 / share</td>
</tr>
<tr>
<td colspan="2">Tender Agent</td>
<td colspan="2" style="text-align: center;">Mitsubishi UFJ Morgan Stanley Securities</td>
</tr>
</tbody>
</table>
</div>
<h2>Schedule</h2>
<table class="table table-striped">
<tbody>
<tr>
<td colspan="2">
<h2> Schedule of Tender Offer </h2>
</td>
</tr>
<tr>
<td>
<p><strong> Event </strong></p>
</td>
<td>
<p><strong>Date</strong></p>
</td>
</tr>
<tr>
<td>
<p> Announcement Date </p>
</td>
<td>
<p>31 August 2018</p>
</td>
</tr>
<tr>
<td>
<p> Start Date </p>
</td>
<td>
<p>3 September 2018</p>
</td>
</tr>
<tr>
<td>
<p> Closing Date </p>
</td>
<td>
<p>17 September 2018 (30 days)</p>
</td>
</tr>
<tr>
<td>
<p> Payment Date </p>
</td>
<td>
<p>24 October 2018</p>
</td>
</tr>
</tbody>
</table>
<p>This is perhaps more interesting than it looks on the surface of things. </p>
<p>This insight continues with fundamentals, shareholder breakdown, pro-ration analysis, and more.</p>
<p>A companion insight will have the Patented Arb Grids.</p>

Friday after the close, lead Nittoc Construction (1929 JP) shareholder AN Holdings (a subsidiary of Asō Corp (a privately held company operating in construction and similar domains, long linked to the family of former Japanese Prime Minister Tarō Asō, with his nephew currently serving as president of the company)) announced a Partial Tender Offer for the reasonably-well-known public works construction company.
Asō Corp through AN Holdings bought their initial stake of 10 million shares from Fudo Tetra Corp (1813 JP) at ¥400 in October 2013, obtaining a 22.77% stake. Just after the tender offer was completed, they purchased another 1,073,800 shares in the market lifting their stake to 26.01%. In March 2015, AN Holdings launched another tender offer at ¥590/share which took them to 15,371,800 shares. They then bought additional shares from Q2 2016 for the next three quarters (through Q1 2017) to get to the current position of 17,371,000 shares or 39.55% of shares outstanding. AN Holdings has one director on the board.
The Partial Tender Offer is for 6,783,810 shares at ¥780/share, which if completely successful will lift their stake from 41.65% of voting rights to 57.91%. There is no minimum.





Tender Offer Details



Situation
Shares
% of Shares Out
% of Shares Out ex-Tsy


AN Holdings KK Owns Now
17,371,000
39.55%
41.65%


Treasury Shares (as of 30-June-2018 (end of Q3))
2,207,106
5.02%
n/a


Shares Outstanding
43,919,291
100.00%



Shares Outstanding ex-Treasury
41,712,185
100.00%






Tender Minimum
0
0



Tender Maximum
6,783,810
15.44%
16.26%





Tender Offer Price
¥780 / share


Tender Agent
Mitsubishi UFJ Morgan Stanley Securities




Schedule




 Schedule of Tender Offer 




 Event 


Date




 Announcement Date 


31 August 2018




 Start Date 


3 September 2018




 Closing Date 


17 September 2018 (30 days)




 Payment Date 


24 October 2018




This is perhaps more interesting than it looks on the surface of things. 
This insight continues with fundamentals, shareholder breakdown, pro-ration analysis, and more.
A companion insight will have the Patented Arb Grids.

Nittoc Construction (1929 JP) Partial Tender by Existing Shareholder: Part 1