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

Ryoyo (8068) - Ryosan (8140): Recent and Former Activist Targets To Merge

Quiddity Advisors

Event-Driven

15 months ago, an electronics trading company called <a href="https://www.smartkarma.com/entities/ukc-holdings-corp" target="_blank" data-smartkarma-citation="entities:5466:1" rel="noopener">Restar Holdings Corporation (3156 JP)</a> (formerly UKC, which itself had been a target of well-known Japanese activist Murakami-san) made a <a href="http://www.kabupro.jp/edp/20190520/S100FSQA.pdf" target="_blank" rel="noopener">Large Shareholder Release</a> to the effect that it had purchased a 20.00% stake (a bit higher in terms of voting rights) in another semiconductor and electronics trading house <a href="https://www.smartkarma.com/entities/ryoyo-electro-corp" target="_blank" data-smartkarma-citation="entities:16757:1" rel="noopener">Ryoyo Electro (8068 JP)</a>"because we believe that by expanding our business area (especially system businesses), we can strengthen our lineup and customer strategy, and we expect synergies and innovative business."Ryoyo appears to have been caught <a href="https://www.ryoyo.co.jp/info/ir/7460/" target="_blank" rel="noopener">unaware</a> on the 13th when Restar announced that its board had decided to purchase shares and did so the same day. It made it clear the attention was unsolicited and this was a hostile acquisition. In March of last year, Ryoyo Electro upped its shareholder return policy, and this year it upped it further. Now it is going a step further.  <h2>The NEW News</h2>The new news is that <a href="https://www.smartkarma.com/entities/ryoyo-electro-corp" target="_blank" data-smartkarma-citation="entities:16757:1" rel="noopener">Ryoyo Electro (8068 JP)</a> will conduct a Tender Offer to buy back its shares and Restar has agreed to sell. This was announced yesterday along with <a href="https://www.ryoyo.co.jp/en/wenp/wp-content/uploads/2020/08/2020Q2_Financial-Review.pdf" target="_blank" rel="noopener">Q2 results</a>. The <a href="https://www.ryoyo.co.jp/wryyp/wp-content/uploads/2020/08/ir301.pdf" target="_blank" rel="noopener">Tender Offer</a> (Japanese-only) is set at ¥2,990 which means Restar has made serious coin on its position of a year and change. The Tender Offer quantity is set at a maximum of 7,357,900 shares which is 5% more than the quantity Restar has agreed to sell. The purchase amount is ¥22 billion. There are some who would call this greenmail. Others, I am sure, will be kinder. There is a trade here. Lots more below the fold. <div></div>

15 months ago, an electronics trading company called Restar Holdings Corporation (3156 JP) (formerly UKC, which itself had been a target of well-known Japanese activist Murakami-san) made a Large Shareholder Release to the effect that it had purchased a 20.00% stake (a bit higher in terms of voting rights) in another semiconductor and electronics trading house Ryoyo Electro (8068 JP)"because we believe that by expanding our business area (especially system businesses), we can strengthen our lineup and customer strategy, and we expect synergies and innovative business."Ryoyo appears to have been caught unaware on the 13th when Restar announced that its board had decided to purchase shares and did so the same day. It made it clear the attention was unsolicited and this was a hostile acquisition. In March of last year, Ryoyo Electro upped its shareholder return policy, and this year it upped it further. Now it is going a step further.  The NEW NewsThe new news is that Ryoyo Electro (8068 JP) will conduct a Tender Offer to buy back its shares and Restar has agreed to sell. This was announced yesterday along with Q2 results. The Tender Offer (Japanese-only) is set at ¥2,990 which means Restar has made serious coin on its position of a year and change. The Tender Offer quantity is set at a maximum of 7,357,900 shares which is 5% more than the quantity Restar has agreed to sell. The purchase amount is ¥22 billion. There are some who would call this greenmail. Others, I am sure, will be kinder. There is a trade here. Lots more below the fold. 

Ryoyo Electro Corporate Activism Ends in Buyout