Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>On 14 December, it was reported that US based Whitebox Advisors has started an activist campaign on Samsung C&amp;T (028260 KS).</li>
<li>Whitebox estimates that Samsung C&amp;T's stock price is about 68% undervalued compared to its NAV.</li>
<li>In addition to Whitebox, there are two other foreign investors including Palliser Capital and City of London Investment Management that have requested Samsung C&amp;T to improve corporate governance.</li>
</ul>


On 14 December, it was reported that US based Whitebox Advisors has started an activist campaign on Samsung C&amp;T (028260 KS).
Whitebox estimates that Samsung C&amp;T's stock price is about 68% undervalued compared to its NAV.
In addition to Whitebox, there are two other foreign investors including Palliser Capital and City of London Investment Management that have requested Samsung C&amp;T to improve corporate governance.


Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Now that Lee Jae-Yong's legal problems appear to have finally have been resolved, it could positively impact Samsung C&amp;T, Samsung Electronics, and Samsung Biologics.</li>
<li>Given the fact that Samsung Electronics and Samsung Biologics are the two most important drivers of Samsung C&amp;T, this could positively benefit the valuation of Samsung C&amp;T. </li>
<li>Our NAV analysis of Samsung C&amp;T suggests NAV of 38.7 trillion won or NAV per share of 217,747 won which is 84% higher from current levels.</li>
</ul>


Now that Lee Jae-Yong's legal problems appear to have finally have been resolved, it could positively impact Samsung C&amp;T, Samsung Electronics, and Samsung Biologics.
Given the fact that Samsung Electronics and Samsung Biologics are the two most important drivers of Samsung C&amp;T, this could positively benefit the valuation of Samsung C&amp;T. 
Our NAV analysis of Samsung C&amp;T suggests NAV of 38.7 trillion won or NAV per share of 217,747 won which is 84% higher from current levels.


Acquittal of Lee Jae-Yong and Impact on Samsung C&T

<ul>
<li>In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 1Q 2025.</li>
<li>The recent martial law cancellation and numerous impeachments of acting Presidents have raised political uncertainty in Korea resulting in widening of some gaps among numerous holdcos and opcos in Korea.</li>
<li>Of the 38 pair trades, 25 of them involved holdcos outperforming opcos in the past six months and the other 13 opcos outperforming holdcos in the same period.</li>
</ul>


In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 1Q 2025.
The recent martial law cancellation and numerous impeachments of acting Presidents have raised political uncertainty in Korea resulting in widening of some gaps among numerous holdcos and opcos in Korea.
Of the 38 pair trades, 25 of them involved holdcos outperforming opcos in the past six months and the other 13 opcos outperforming holdcos in the same period.


Korean Holdcos Vs Opcos Gap Trading Opportunities in 1Q 2025

<ul>
<li>Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process.</li>
<li>The main change involves the practice of allocating newly issued shares to existing treasury shares held by companies during corporate spinoffs. </li>
<li>This practice will now be banned which should help to reduce the wrongful use of treasury shares and improve minority shareholders' rights. </li>
</ul>


Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process.
The main change involves the practice of allocating newly issued shares to existing treasury shares held by companies during corporate spinoffs. 
This practice will now be banned which should help to reduce the wrongful use of treasury shares and improve minority shareholders' rights. 


Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025

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>The Dems are serious about the Commercial Act amendment, with Lee Jae-myung personally attending the policy forum to pitch the change directly to key business players.</li>
<li>Key takeaways: expanding directors' fiduciary duties to all shareholders and mandatory cumulative voting, which could empower minority shareholders and reignite value-up policies in Korean companies.</li>
<li>The Dems plan to fast-track the Commercial Act amendment by year-end, with implementation likely by Q2 next year, boosting market moves and reigniting the value-up trade ahead of May’s election.</li>
</ul>


The Dems are serious about the Commercial Act amendment, with Lee Jae-myung personally attending the policy forum to pitch the change directly to key business players.
Key takeaways: expanding directors' fiduciary duties to all shareholders and mandatory cumulative voting, which could empower minority shareholders and reignite value-up policies in Korean companies.
The Dems plan to fast-track the Commercial Act amendment by year-end, with implementation likely by Q2 next year, boosting market moves and reigniting the value-up trade ahead of May’s election.


Korean Dems Push for Commercial Act Amendment by Year-End: Game-Changer for Value-Up Trade

South Korea

Samsung C&T Corporation conducts diversified business support services and resort operation activities. The Company offers a range of services in areas including clothing retail, construction, energy, real estate, food service, and resort accommodations. Samsung C&T also operates a resort with amusement rides, a zoo, water park, golf clubs, and restaurants.

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Samsung C&T (028260 KS)

Whitebox Goes Activist on Samsung C&T

On 14 December, it was reported that US based Whitebox Advisors has started an activist campaign on Samsung C&T (028260 KS).

Douglas Kim

Acquittal of Lee Jae-Yong and Impact on Samsung C&T

Now that Lee Jae-Yong's legal problems appear to have finally have been resolved, it could positively impact Samsung C&T, Samsung Electronics, and...

Douglas Kim

Korean Holdcos Vs Opcos Gap Trading Opportunities in 1Q 2025

In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in...

Douglas Kim

Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025

Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process.

Douglas Kim

Korean Dems Push for Commercial Act Amendment by Year-End: Game-Changer for Value-Up Trade

Korean democratic party is pushing to wrap up the Commercial Act amendment by year-end: This could spark a fresh turning point for the value-up trade.

Sanghyun Park

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