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

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/kadokawa-corp" target="_blank" data-smartkarma-citation="entities:4152:1" rel="noopener">Kadokawa (9468 JP)</a> <strong><a href="https://ssl4.eir-parts.net/doc/9468/ir_material7/242676/00.pdf" target="_blank" rel="noopener">announced</a></strong> it would sell ¥50bn of shares to <a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563:1" rel="noopener">Sony (6758 JP)</a> in a 3rd Party Allotment to cement a Strategic/Capital Alliance. Sony will own 10% at ¥4,146/share.</li>
<li>40% of proceeds is to "create and develop new IP", 60% is to "enhance global IP distribution"; both over 5yrs. Given ¥108bn of net cash/securities, this is a garbage reason. </li>
<li>Kadokawa shares have gained 44% in a month since Reuters carried an "Exclusive" article saying Sony was in talks to acquire Kadokawa. This is defensive entrenchment. The result will disappoint.</li>
</ul>


Today, Kadokawa (9468 JP) announced it would sell ¥50bn of shares to Sony (6758 JP) in a 3rd Party Allotment to cement a Strategic/Capital Alliance. Sony will own 10% at ¥4,146/share.
40% of proceeds is to "create and develop new IP", 60% is to "enhance global IP distribution"; both over 5yrs. Given ¥108bn of net cash/securities, this is a garbage reason. 
Kadokawa shares have gained 44% in a month since Reuters carried an "Exclusive" article saying Sony was in talks to acquire Kadokawa. This is defensive entrenchment. The result will disappoint.


Sony To Buy 7+% Stake in Kadokawa (9468 JP) For ¥50bn, Ending Near-Term Hopes of Takeover