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

Huat Ah! SPH Holders So Shiok, Keppel (So Kiasu!) Adds 20 Cents - Swee!

Huat Ah Redux! Cuscaden Revises Offer for SPH, SPH Deems It Superior

SPH Shareholders - A Good Deal For Waiting (After a Good Deal of Waiting)

Alamak! SPH Restructuring Restructured as Keppel Bo Jios SPH Holders

SPH Shareholders Approve Spinoff - There's Still a Spread To Earn

SPH Lobang - Holders So Shiok, Bidders So Kiasu. This May Not Be The End.

Quiddity Advisors

Event-Driven

Last week, Cuscaden Peak Pte. Limited - an entity led and 40% owned by tycoon Mr. Ong Bong Seng's Singapore-listed Hotel Properties Ltd, with the remaining 60% split between the Capitaland parent company (Temasek-backed), and 30% Mapletree Investments - a S$66bn property owner-manager with four listed S-REITs and 6 PE real estate funds (also Temasek-backed) - announced a counterproposal for <a href="https://www.smartkarma.com/entities/singapore-press-holdings-limited" target="_blank" data-smartkarma-citation="entities:9952:1" rel="noopener">Singapore Press Holdings (SPH SP)</a> at S$2.10/share in cash, topping the Scheme Consideration in the <a href="https://www.smartkarma.com/entities/keppel-corp-ltd" target="_blank" data-smartkarma-citation="entities:12:1" rel="noopener">Keppel Corp (KEP SP)</a> Offer.
This was discussed in <a href="https://www.smartkarma.com/insights/sph-lobang-holders-so-shiok-bidders-so-kiasu-this-may-not-be-the-end" target="_blank" data-smartkarma-citation="insights:59725" rel="noopener">SPH Lobang - Holders So Shiok, Bidders So Kiasu. This May Not Be The End.</a> 
The Cuscaden Offer was, in my mind, a teaser. The original Keppel Offer presentation said that the "value" was S$2.099/share and the market value of the Keppel Offer Consideration was S$2.086/share. This was a tenth of a cent higher than the original and less than 1% higher than the existing consideration.
The "problem" for Cuscaden in offering such a price was that arbitrageurs who may have had the trade on would need to buy back <a href="https://www.smartkarma.com/entities/keppel-reit" target="_blank" data-smartkarma-citation="entities:192:1" rel="noopener">Keppel REIT (KREIT SP)</a> and <a href="https://www.smartkarma.com/entities/sph-reit" target="_blank" data-smartkarma-citation="entities:5994:1" rel="noopener">SPH REIT (SPHREIT SP)</a> shares which they would have shorted to put on the arb - a good arb as discussed in <a href="https://www.smartkarma.com/insights/sph-shareholders-approve-spinoff-there-s-still-a-spread-to-earn" target="_blank" data-smartkarma-citation="insights:57504" rel="noopener">SPH Shareholders Approve Spinoff - There's Still a Spread To Earn</a> about 8 weeks ago. That would mechanically force the REIT prices higher, pushing the Keppel Scheme Consideration higher - perhaps more than 1% higher. 
Indeed it did. On Friday while SPH was suspended, the two REITs in the Consideration Basket gained in price and the value of the Keppel Consideration rose through S$2.10/unit. Keppel also <a href="https://links.sgx.com/FileOpen/KCL%20Announcement_Possible%20Offer%20for%20SPH_291021.ashx?App=Announcement&amp;FileID=688663" target="_blank" rel="noopener">announced</a> it would review and respond in due course. 
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Overnight, Cuscaden has announced the calculations for their Possible Chain Offer for <a href="https://www.smartkarma.com/entities/sph-reit" target="_blank" data-smartkarma-citation="entities:5994:1" rel="noopener">SPH REIT (SPHREIT SP)</a>.

Last week, Cuscaden Peak Pte. Limited - an entity led and 40% owned by tycoon Mr. Ong Bong Seng's Singapore-listed Hotel Properties Ltd, with the remaining 60% split between the Capitaland parent company (Temasek-backed), and 30% Mapletree Investments - a S$66bn property owner-manager with four listed S-REITs and 6 PE real estate funds (also Temasek-backed) - announced a counterproposal for Singapore Press Holdings (SPH SP) at S$2.10/share in cash, topping the Scheme Consideration in the Keppel Corp (KEP SP) Offer.
This was discussed in SPH Lobang - Holders So Shiok, Bidders So Kiasu. This May Not Be The End. 
The Cuscaden Offer was, in my mind, a teaser. The original Keppel Offer presentation said that the "value" was S$2.099/share and the market value of the Keppel Offer Consideration was S$2.086/share. This was a tenth of a cent higher than the original and less than 1% higher than the existing consideration.
The "problem" for Cuscaden in offering such a price was that arbitrageurs who may have had the trade on would need to buy back Keppel REIT (KREIT SP) and SPH REIT (SPHREIT SP) shares which they would have shorted to put on the arb - a good arb as discussed in SPH Shareholders Approve Spinoff - There's Still a Spread To Earn about 8 weeks ago. That would mechanically force the REIT prices higher, pushing the Keppel Scheme Consideration higher - perhaps more than 1% higher. 
Indeed it did. On Friday while SPH was suspended, the two REITs in the Consideration Basket gained in price and the value of the Keppel Consideration rose through S$2.10/unit. Keppel also announced it would review and respond in due course. 



Overnight, Cuscaden has announced the calculations for their Possible Chain Offer for SPH REIT (SPHREIT SP). 

SPH Update: Keppel, SPH REIT Chain Offer, and Cuscaden Strategy