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

Sumitomo Real Estate Sales / Event-Driven

After the close today, Japanese real estate mega-developer <a href="https://www.smartkarma.com/entities/1411" target="_blank" data-smartkarma-citation="entities:1411:1">Sumitomo Realty &amp; Development (8830 JP)</a> ("Sumitomo Realty") <a href="http://www.sumitomo-rd.co.jp/news/files/1703_0005/release_170317.pdf" target="_blank">announced</a> a Tender Offer to take out minority holders of its brokerage subsidiary <a href="https://www.smartkarma.com/entities/3068" target="_blank" data-smartkarma-citation="entities:3068:1">Sumitomo Real Estate Sales (8870 JP)</a>. Investors have been waiting years for this.Because Sumitomo Realty owns 40.2mm shares out of the 57.2 million shares outstanding (just over 70%), and there is no minimum tendered quantity to make the deal "successful", the deal is a "done deal." The Tender Offer Price at ¥3,600/share is a 24% premium to last traded price and is just over 1% shy of the 5yr closing high price. It is higher than the average of the "trading price" and the "DCF value" provided by the financial advisors to both the buyer and the seller, and is pretty much spot on the middle of the range of the DCF numbers, but the tender offer price is probably 20% below the "adjusted DCF fair value" of those advisors when one includes the substantial net cash position. But... there is no minimum, and no 'majority of minority' required to make this deal successful, and the result will be - regardless of whether anyone tenders or not - a two-step windup merger process. More below the fold for Smartkarma subscribers...

After the close today, Japanese real estate mega-developer Sumitomo Realty &amp; Development (8830 JP) ("Sumitomo Realty") announced a Tender Offer to take out minority holders of its brokerage subsidiary Sumitomo Real Estate Sales (8870 JP). Investors have been waiting years for this.Because Sumitomo Realty owns 40.2mm shares out of the 57.2 million shares outstanding (just over 70%), and there is no minimum tendered quantity to make the deal "successful", the deal is a "done deal." The Tender Offer Price at ¥3,600/share is a 24% premium to last traded price and is just over 1% shy of the 5yr closing high price. It is higher than the average of the "trading price" and the "DCF value" provided by the financial advisors to both the buyer and the seller, and is pretty much spot on the middle of the range of the DCF numbers, but the tender offer price is probably 20% below the "adjusted DCF fair value" of those advisors when one includes the substantial net cash position. But... there is no minimum, and no 'majority of minority' required to make this deal successful, and the result will be - regardless of whether anyone tenders or not - a two-step windup merger process. More below the fold for Smartkarma subscribers...

Sumi Realty (8830) To Launch TOB for Sumi Real Estate Sales (8870)... Finally...