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

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

Nishimatsu Construction - Tender Completed, Overhang Commences

Toa Corp (1885 JP) - Another Big Buyback for a Murakami Company

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/sanshin-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:5711:1" rel="noopener">Sanshin Electronics (8150 JP)</a> today <a href="https://www.sanshin.co.jp/2709/" target="_blank" rel="noopener">announced</a> it would buy back up to 7 million shares in a Tender Offer at ¥2,249/share, which is higher than all any price in history save three closing prices in April 2018. It is more impressive than it sounds. The 7,000,000 shares is 28.8% of shares out, and is designed to lift the company's Return on Equity above 5%. But importantly, the 6.7 million shares which are specifically targeted here for purchase are 34.9% of the shares out less treasury shares. <div class="content-highlight">
But, like most buyback tender offers in Japan, this one is not meant for you. 
In fact, while it would be less expensive for the company to execute such a buyback offer through the ToSTNeT-3 buyback mechanism (which would entail using the same pro rata allocation as a Tender Offer), a Tender Offer is being used in this situation quite specifically as a method to deter many shareholders (including most Smartkarma readers) from tendering.  
</div>This is something where companies need to be educated by investors that investors would rather be able to participate in such tender offers than not. If you hold shares in Sanshin, or if you do not but you like big messy events like this, there is more below the fold.

Sanshin Electronics (8150 JP) today announced it would buy back up to 7 million shares in a Tender Offer at ¥2,249/share, which is higher than all any price in history save three closing prices in April 2018. It is more impressive than it sounds. The 7,000,000 shares is 28.8% of shares out, and is designed to lift the company's Return on Equity above 5%. But importantly, the 6.7 million shares which are specifically targeted here for purchase are 34.9% of the shares out less treasury shares. 
But, like most buyback tender offers in Japan, this one is not meant for you. 
In fact, while it would be less expensive for the company to execute such a buyback offer through the ToSTNeT-3 buyback mechanism (which would entail using the same pro rata allocation as a Tender Offer), a Tender Offer is being used in this situation quite specifically as a method to deter many shareholders (including most Smartkarma readers) from tendering.  
This is something where companies need to be educated by investors that investors would rather be able to participate in such tender offers than not. If you hold shares in Sanshin, or if you do not but you like big messy events like this, there is more below the fold.

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