Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

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<li>
This note is an update of <a href="https://www.smartkarma.com/entities/10709" target="_blank" data-smartkarma-citation="entities:10709:1">Hankuk Glass Ind (002000 KS)</a>, which announced that it is taking the company private on 30 July 2018 (after market close). This case is highly unusual for two main reasons. First, it is rare for a listed Korean company to take the company private. Second, the share price of Hankuk Glass has appreciated sharply, higher than the tender offer price. </li>
<li>There is one interesting angle with regards to Hankuk Glass right now, which is that the 2.4% of the minority shareholders who have yet to sell their shares may be betting on an even higher tender offer of their shares by Saint-Gobain at a later date. The remaining minority shares may be betting that Saint-Gobain may try to increase its stake of Hankuk Glass to 100%. </li>
<li>For the Korean retail investors, there is no capital gains tax on publicly listed companies but they need to pay a capital gains tax rate of 11% for private companies. Hence, if and when Hankuk Glass does become private and the Korean retail minority shareholders still own a small portion of Hankuk Glass, they will be slapped with an 11% capital gains tax when they try to unload their shares of Hankuk Glass (once they become de-listed as a public company). </li>
</ul>



This note is an update of Hankuk Glass Ind (002000 KS), which announced that it is taking the company private on 30 July 2018 (after market close). This case is highly unusual for two main reasons. First, it is rare for a listed Korean company to take the company private. Second, the share price of Hankuk Glass has appreciated sharply, higher than the tender offer price. 
There is one interesting angle with regards to Hankuk Glass right now, which is that the 2.4% of the minority shareholders who have yet to sell their shares may be betting on an even higher tender offer of their shares by Saint-Gobain at a later date. The remaining minority shares may be betting that Saint-Gobain may try to increase its stake of Hankuk Glass to 100%. 
For the Korean retail investors, there is no capital gains tax on publicly listed companies but they need to pay a capital gains tax rate of 11% for private companies. Hence, if and when Hankuk Glass does become private and the Korean retail minority shareholders still own a small portion of Hankuk Glass, they will be slapped with an 11% capital gains tax when they try to unload their shares of Hankuk Glass (once they become de-listed as a public company). 


An Update on the Unusual Case of Hankuk Glass Going Private

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Thematic (Sector/Industry)

Last week was a week of earnings releases for Japan analysts in this Smartkarma community. I have picked up several earnings insights from the Japan side, which I strongly feel you should check out if you already haven't read yet. But my headline insight of the week from Japan side is <a href="https://www.smartkarma.com/profiles/25" target="_blank" data-smartkarma-citation="accounts:25">Travis Lundy</a>'s another thought-provoking piece on his Japan Passive theme: <a href="https://www.smartkarma.com/insights/japan-passive-dovish-meeting-boj-to-buy-less-nikkei-225" target="_blank">JAPAN PASSIVE - Dovish Meeting; BOJ to Buy Less Nikkei 225</a>. As for our Korean insights, we didn't have as many earnings insights as Japan…

Last week was a week of earnings releases for Japan analysts in this Smartkarma community. I have picked up several earnings insights from the Japan side, which I strongly feel you should check out if you already haven't read yet. But my headline insight of the week from Japan side is Travis Lundy's another thought-provoking piece on his Japan Passive theme: JAPAN PASSIVE - Dovish Meeting; BOJ to Buy Less Nikkei 225. As for our Korean insights, we didn't have as many earnings insights as Japan…

Smartkarma's Week That Was in JP/KR: BOJ Again, JP/KR Earnings! & SK Telecom

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July was a tough month for the Korean stock market and it was even a tougher period for the Moon Jae-In administration. Moon Jae-In's support in the local polls have fallen to the low 60% range, down from the low 80% levels a few months ago when the summit between Moon Jae-In and North Korea's Kim Jong-Un occurred. The main complaint among many peoples in Korea have been the lack of turnaround in the domestic economy, concerns about new job creation, higher taxes, and the a sharp decline in…
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July was a tough month for the Korean stock market and it was even a tougher period for the Moon Jae-In administration. Moon Jae-In's support in the local polls have fallen to the low 60% range, down from the low 80% levels a few months ago when the summit between Moon Jae-In and North Korea's Kim Jong-Un occurred. The main complaint among many peoples in Korea have been the lack of turnaround in the domestic economy, concerns about new job creation, higher taxes, and the a sharp decline in…


Korea Stock Market Monthly Recap #27 (July 2018)

<a href="https://www.smartkarma.com/entities/10709" target="_blank" data-smartkarma-citation="entities:10709:1">Hankuk Glass Ind (002000 KS)</a> (market cap of 448 billion won or US$380 million) announced after the market close today that it is taking the company private. Established in 1957, Hankuk Glass provides various glass products used in the construction, architectural, automotive, and manufacturing related industries. Saint-Gobain (France) is currently the largest shareholder of Hankuk Glass with a stake of 80.5%. It has been nearly 20 years since Saint-Gobain first made its investment in Hankuk…

Hankuk Glass Ind (002000 KS) (market cap of 448 billion won or US$380 million) announced after the market close today that it is taking the company private. Established in 1957, Hankuk Glass provides various glass products used in the construction, architectural, automotive, and manufacturing related industries. Saint-Gobain (France) is currently the largest shareholder of Hankuk Glass with a stake of 80.5%. It has been nearly 20 years since Saint-Gobain first made its investment in Hankuk…

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

<blockquote>
“Using leverage to cure the problems of too much leverage is not homeopathy, it is denial. The debt crisis is not a temporary problem, it is a structural one. We need rehab.”
―Nassim Nicholas Taleb, Ten principles for a Black Swan-proof world (2009)
</blockquote>This morning, Hanjin Shipping Co. said it will apply for court receivership after lenders decided to halt all support. We have been highlighting these risks from 2013 and in our last update on troubled container shipping company, we had highlighted the…


“Using leverage to cure the problems of too much leverage is not homeopathy, it is denial. The debt crisis is not a temporary problem, it is a structural one. We need rehab.”
―Nassim Nicholas Taleb, Ten principles for a Black Swan-proof world (2009)
This morning, Hanjin Shipping Co. said it will apply for court receivership after lenders decided to halt all support. We have been highlighting these risks from 2013 and in our last update on troubled container shipping company, we had highlighted the…

Hanjin Shipping(117930 KS) - Borrowed Time Comes to an End

South Korea

Hankuk Glass Industries Inc. manufactures a variety of glass products, such as flat glass, glass wools, tube glass, and automobile windshields.

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Hankuk Glass Ind (002000 KS)

An Update on the Unusual Case of Hankuk Glass Going Private

This note is an update of Hankuk Glass Ind (002000 KS), which announced that it is taking the company private on 30 July 2018 (after market...

Douglas Kim

Smartkarma's Week That Was in JP/KR: BOJ Again, JP/KR Earnings! & SK Telecom

Last week was a week of earnings releases for Japan analysts in this Smartkarma community. I have picked up several earnings insights from the...

Sanghyun Park

Korea Stock Market Monthly Recap #27 (July 2018)

July was a tough month for the Korean stock market and it was even a tougher period for the Moon Jae-In administration. Moon Jae-In's support in...

Douglas Kim

Hankuk Glass Is Going Private

Hankuk Glass Ind (002000 KS) (market cap of 448 billion won or US$380 million) announced after the market close today that it is taking the company...

Douglas Kim

Hanjin Shipping(117930 KS) - Borrowed Time Comes to an End

“Using leverage to cure the problems of too much leverage is not homeopathy, it is denial. The debt crisis is not a temporary problem, it is a...

Drewry Maritime Financial Research

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