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

Yamaha Motor Robotics Holdings / Event-Driven

The history here is tough to sort out.A year ago, <a href="https://www.smartkarma.com/entities/yamaha-motor-robotics-holdin" target="_blank" data-smartkarma-citation="entities:15110:1" rel="noopener">Yamaha Motor Robotics Holdings (6274 JP)</a> was named Shinkawa, and it agreed on 12 Feb 2019 to launch a Tender Offer for a company called <a href="https://www.smartkarma.com/entities/apic-yamada-corp" target="_blank" data-smartkarma-citation="entities:11374:1" rel="noopener">Apic Yamada (6300 JP)</a> which was an auto-moulding company (aiming at the fan-out segment). What is "fan-out"? According to former Smartkarma contributor Andrew Lu....<blockquote>Fan-out is an enhancement of the standard wafer-level packaging technology developed to provide a solution for semiconductor devices requiring a higher integration level and a greater number of I/Os down to 5-10 micron line and space. In this method, chips are singularized and then embedded in a carrier after a epoxy molding compound has been added (molded reconfigured wafer). The carrier is often formed in the shape of a wafer, so that standard wafer processing methods can continue to be used to create build-up layers on the surface.  The extra carrier area around the chip allows more I/Os to be fanned out across the molded compound, thus accommodating a larger number of I/Os (input/output). After the build-up layer process (adding redistribution layers (RDL) and pads), it undergoes solder ball attachment, before the packages undergo back grinding, laser marking, and singulation.</blockquote>In any case, Shinkawa launched a Tender Offer for Apic Yamada, and on the same day, announced a private placement to <a href="https://www.smartkarma.com/entities/yamaha-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:7411:1" rel="noopener">Yamaha Motor (7272 JP)</a> such that Yamaha would purchase 56% of Shinkawa at roughly the last traded price. The aim was to raise funds to buy out Apic Yamada and fund restructuring. The issuance of shares was approved at an EGM in April 2019. The transaction closed in June and the Newco was fully-formed July 1.Shinkawa - which had negative operating profits for nine of the last ten years - saw its shares bounce on new hope.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/117/545/original/Screenshot%202020-02-12%20at%2010.14.46%20PM.png?1581516915" class="editor-image img-responsive" data-smartkarma-image-id="117545"></figure><div class="content-caption">source: tradingview.com, Quiddity</div>The next earnings report in May dashed what hope there was and the shares fell 30% to newer post-announcement lows.  This past autumn saw further restructuring under new management/control, an early retirement plan for employees, and the continued expectation of significant net losses. Today's Q3 earnings release cements those expectations for this year. But now there is a Tender Offer by Yamaha Motors to take out Yamaha Robotics at a 44.5% premium. That is a 12+month high. More on this below.

The history here is tough to sort out.A year ago, Yamaha Motor Robotics Holdings (6274 JP) was named Shinkawa, and it agreed on 12 Feb 2019 to launch a Tender Offer for a company called Apic Yamada (6300 JP) which was an auto-moulding company (aiming at the fan-out segment). What is "fan-out"? According to former Smartkarma contributor Andrew Lu....Fan-out is an enhancement of the standard wafer-level packaging technology developed to provide a solution for semiconductor devices requiring a higher integration level and a greater number of I/Os down to 5-10 micron line and space. In this method, chips are singularized and then embedded in a carrier after a epoxy molding compound has been added (molded reconfigured wafer). The carrier is often formed in the shape of a wafer, so that standard wafer processing methods can continue to be used to create build-up layers on the surface.  The extra carrier area around the chip allows more I/Os to be fanned out across the molded compound, thus accommodating a larger number of I/Os (input/output). After the build-up layer process (adding redistribution layers (RDL) and pads), it undergoes solder ball attachment, before the packages undergo back grinding, laser marking, and singulation.In any case, Shinkawa launched a Tender Offer for Apic Yamada, and on the same day, announced a private placement to Yamaha Motor (7272 JP) such that Yamaha would purchase 56% of Shinkawa at roughly the last traded price. The aim was to raise funds to buy out Apic Yamada and fund restructuring. The issuance of shares was approved at an EGM in April 2019. The transaction closed in June and the Newco was fully-formed July 1.Shinkawa - which had negative operating profits for nine of the last ten years - saw its shares bounce on new hope.source: tradingview.com, QuiddityThe next earnings report in May dashed what hope there was and the shares fell 30% to newer post-announcement lows.  This past autumn saw further restructuring under new management/control, an early retirement plan for employees, and the continued expectation of significant net losses. Today's Q3 earnings release cements those expectations for this year. But now there is a Tender Offer by Yamaha Motors to take out Yamaha Robotics at a 44.5% premium. That is a 12+month high. More on this below. 

Yamaha Motor Robotics Holdings

Yamaha Motor Robotics TOB/Buyout