Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>We look at Korea's leading KOSPI200 Index every month and publish ADDs and DELETEs expected for the next rebalance.</li>
<li>Our final rankings are now set (assuming no strange disasters in the data). We see 5 ADDs and 6 DELETEs in the upcoming December rebalance. </li>
<li>For the third insight in a row, I am sticking with the same single trade. So far in 5 weeks it is +11.6% vs KOSPI200. There are others. </li>
</ul>


We look at Korea's leading KOSPI200 Index every month and publish ADDs and DELETEs expected for the next rebalance.
Our final rankings are now set (assuming no strange disasters in the data). We see 5 ADDs and 6 DELETEs in the upcoming December rebalance. 
For the third insight in a row, I am sticking with the same single trade. So far in 5 weeks it is +11.6% vs KOSPI200. There are others. 


Quiddity Leaderboard KOSPI 200 Dec 24 Rebal: Final Rankings - Multiple Trades To Do

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Today's FSS briefing warned Choi, favoring MBK. It looks likely Korea Zinc will retract the rights offering, or we might see a rare showdown with the FSS.</li>
<li>Will Korea Zinc's stock rally? Uncertain. The recent price jump was driven mainly by short squeezes. Volatility seems unlikely now with many shorts cleared out.</li>
<li>We should watch the shareholder vote, as open market buying continues, keeping Korea Zinc's stock tight. We should expect potential swings due to passive outflows.</li>
</ul>


Today's FSS briefing warned Choi, favoring MBK. It looks likely Korea Zinc will retract the rights offering, or we might see a rare showdown with the FSS.
Will Korea Zinc's stock rally? Uncertain. The recent price jump was driven mainly by short squeezes. Volatility seems unlikely now with many shorts cleared out.
We should watch the shareholder vote, as open market buying continues, keeping Korea Zinc's stock tight. We should expect potential swings due to passive outflows.


FSS Briefing on Korea Zinc: Likely to Retract Rights Offering; Set up Trades for Passive Outflows

<ul>
<li>A unique clause caps any single subscriber, including related parties, to 3% of the total issuance, or 111,979 shares, limiting MBK and Choi’s camp.</li>
<li>While there are legal risks regarding breach of duty, the capital raise is solid and unlikely to face immediate shutdown despite potential court challenges from MBK.</li>
<li>There are trading opportunities as 20% of shares are newly issued, potentially opening the door for MBK's tender offer and attracting new shareholders, including arb hunters.</li>
</ul>


A unique clause caps any single subscriber, including related parties, to 3% of the total issuance, or 111,979 shares, limiting MBK and Choi’s camp.
While there are legal risks regarding breach of duty, the capital raise is solid and unlikely to face immediate shutdown despite potential court challenges from MBK.
There are trading opportunities as 20% of shares are newly issued, potentially opening the door for MBK's tender offer and attracting new shareholders, including arb hunters.


Breaking Down the Details of Korea Zinc’s Shocking Capital Raise

<ul>
<li>There's still 13.67% of neutral votes up for grabs, sparking market chatter about a fresh tender. But Choi is focusing on reviving voting rights for treasury shares.</li>
<li>MBK stated today that Korea Zinc's 9.85% treasury shares might not be canceled and could be sold to employee stock ownership plans (ESOPs).</li>
<li>MBK may ramp up open market buying sooner and more aggressively than expected, likely already impacting Korea Zinc's stock price starting today.</li>
</ul>


There's still 13.67% of neutral votes up for grabs, sparking market chatter about a fresh tender. But Choi is focusing on reviving voting rights for treasury shares.
MBK stated today that Korea Zinc's 9.85% treasury shares might not be canceled and could be sold to employee stock ownership plans (ESOPs).
MBK may ramp up open market buying sooner and more aggressively than expected, likely already impacting Korea Zinc's stock price starting today.


Korea Zinc's Buyback Results and Price Actions from Potential Sale of 9.85% Treasury to ESOP

David Blennerhassett

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I (3382 JP)</a>'s roadmap is a solid response to where retailing is headed, both in Japan and elsewhere; while ACT's bid is just about carrying on as now.</li>
<li>
<a href="https://www.smartkarma.com/entities/esr-group-ltd" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR (1821 HK)</a> is a non-binding proposal, no official terms, with a fragmented shareholder register. And this is before any opaque PRC regulatory conditions tacked on in a firm Offer.</li>
<li>Murakami-San is up to 23.5% of voting rights in <a href="https://www.smartkarma.com/entities/exedy-corp" target="_blank" data-smartkarma-citation="entities:6516:1" rel="noopener">Exedy Corp (7278 JP)</a>. He would probably need 30% to be able to threaten a board spill.</li>
</ul>



Seven &amp; I (3382 JP)'s roadmap is a solid response to where retailing is headed, both in Japan and elsewhere; while ACT's bid is just about carrying on as now.

ESR (1821 HK) is a non-binding proposal, no official terms, with a fragmented shareholder register. And this is before any opaque PRC regulatory conditions tacked on in a firm Offer.
Murakami-San is up to 23.5% of voting rights in Exedy Corp (7278 JP). He would probably need 30% to be able to threaten a board spill.


Last Week in Event SPACE: Seven & I, ESR, Exedy, CMCDI, Shin Kong

South Korea

Young Poong Corporation produces and markets non-ferrous metals, such as zinc ingots, sulfate, and cadmium.  The Company also generates income from leasing buildings.

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Young Poong (000670 KS)

Quiddity Leaderboard KOSPI 200 Dec 24 Rebal: Final Rankings - Multiple Trades To Do

The KOSPI200 December 2024 rebal has its reference data. Unless there are dramatic changes, the rebal should be set. We expect 5 ADDs 6 DELETEs. I...

Travis Lundy

FSS Briefing on Korea Zinc: Likely to Retract Rights Offering; Set up Trades for Passive Outflows

This post covers today’s FSS briefing on the Korea Zinc rights offering and explores the reasons behind the likely cancellation. It also highlights...

Sanghyun Park

Breaking Down the Details of Korea Zinc’s Shocking Capital Raise

This post dives into the details of Korea Zinc’s shocking capital raise announced this morning and breaks down what it all means from a trading...

Sanghyun Park

Korea Zinc's Buyback Results and Price Actions from Potential Sale of 9.85% Treasury to ESOP

This post covers Korea Zinc's buyback tender results and touches on stock price actions likely driven by the potential sale of the 9.85% treasury...

Sanghyun Park

Last Week in Event SPACE: Seven & I, ESR, Exedy, CMCDI, Shin Kong

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

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