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

Quiddity Advisors

Event-Driven

On Tuesday 22 June after the close, the CEO of <a href="https://www.smartkarma.com/entities/oliver-corp" target="_blank" data-smartkarma-citation="entities:8497:1" rel="noopener">Oliver Corp (7959 JP)</a> - a Japanese interior design and furniture company - and Integral KK, a small private equity firm in Japan with a couple dozen small deals under its belt, announced an MBO for the company. The founder is 90 years old. His son is 59 years old. The company is 52% held by insiders and crossholders (at a minimum). Foreigners own 0.7% of this company. Because of the name of the company and the lightness of the bid which could make investors feel a little peckish, I offer a modern take on the old tale.<iframe src="https://www.youtube.com/embed/SqnPmnrVmQY" width="840" height="472" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe>The Company is significantly cash-rich. The market cap at takeout price is ¥38.6bn but net cash and securities are close to ¥25bn. The forecast for forward EBITDA appears to take a sharp hit from this year onward despite ongoing record sales expectations. Hmmm... The ¥3,781/share offered is probably a bit light. I estimate this deal should be done at ¥4600-5000/share. But it will be tough to block.Much more below the fold.

On Tuesday 22 June after the close, the CEO of Oliver Corp (7959 JP) - a Japanese interior design and furniture company - and Integral KK, a small private equity firm in Japan with a couple dozen small deals under its belt, announced an MBO for the company. The founder is 90 years old. His son is 59 years old. The company is 52% held by insiders and crossholders (at a minimum). Foreigners own 0.7% of this company. Because of the name of the company and the lightness of the bid which could make investors feel a little peckish, I offer a modern take on the old tale.The Company is significantly cash-rich. The market cap at takeout price is ¥38.6bn but net cash and securities are close to ¥25bn. The forecast for forward EBITDA appears to take a sharp hit from this year onward despite ongoing record sales expectations. Hmmm... The ¥3,781/share offered is probably a bit light. I estimate this deal should be done at ¥4600-5000/share. But it will be tough to block.Much more below the fold. 

Oliver (7959 JP) MBO - Please Sir, I Want Some More!