Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Event-Driven

<ul>
<li>Samsung C&amp;T’s holding ratio mainly hinges on its Samsung Biologics stake; Samsung Electronics’ 5% isn’t counted, and Samsung SDS is excluded since Samsung Electronics is its largest shareholder.</li>
<li>This ties to calls for Samsung’s governance overhaul, aiming for C&amp;T to avoid forced conversion while boosting control over Samsung Electronics via bold, more aggressive moves than expected.</li>
<li>Samsung C&amp;T will likely sell some Biologics shares around its in-kind contribution to Epis, timing sales based on post-listing price action.</li>
</ul>


Samsung C&amp;T’s holding ratio mainly hinges on its Samsung Biologics stake; Samsung Electronics’ 5% isn’t counted, and Samsung SDS is excluded since Samsung Electronics is its largest shareholder.
This ties to calls for Samsung’s governance overhaul, aiming for C&amp;T to avoid forced conversion while boosting control over Samsung Electronics via bold, more aggressive moves than expected.
Samsung C&amp;T will likely sell some Biologics shares around its in-kind contribution to Epis, timing sales based on post-listing price action.


Clearing Confusion on Samsung C&T’s Forced Holding Co Conversion: Key Trade Angle in Biologics Split

<ul>
<li>Samsung Biologics is spinning off Samsung Bio Holdings, transferring full Samsung Bioepis shares; shareholders keep stakes in both, with an expected 70:30 split favoring Biologics.</li>
<li>Post-Split, major shareholders keep stakes; they’ll transfer Biologics shares to Bio Holdings, which becomes parent owning 74.34% Biologics and 100% Bioepis, meeting holding company rules.</li>
<li>Samsung C&amp;T’s restructuring carves out Biologics into a holdco, lowering valuation to avoid forced holding company conversion and enabling future Samsung Electronics share acquisition.</li>
</ul>


Samsung Biologics is spinning off Samsung Bio Holdings, transferring full Samsung Bioepis shares; shareholders keep stakes in both, with an expected 70:30 split favoring Biologics.
Post-Split, major shareholders keep stakes; they’ll transfer Biologics shares to Bio Holdings, which becomes parent owning 74.34% Biologics and 100% Bioepis, meeting holding company rules.
Samsung C&amp;T’s restructuring carves out Biologics into a holdco, lowering valuation to avoid forced holding company conversion and enabling future Samsung Electronics share acquisition.


Intel Summary on Samsung Biologics Split and Samsung C&T’s Acquisition of Samsung Electronics Shares

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Equity Derivatives

<ul>
<li>As reported by <a href="https://www.smartkarma.com/profiles/sanghyun-park" target="_blank" data-smartkarma-citation="accounts:354" rel="noopener">Sanghyun Park</a>, <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> 's phase 2 buyback disposal plan appears to be virtually finalized (or will be finalized soon - not official yet).</li>
<li>As always, we’ll assess what our tactical models suggest about the trend from here—interpreted alongside the latest catalysts.</li>
<li>We have been monitoring <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> for a while: the stock has been bottoming, then flat for a while, rallied modestly, now a minor pullback... <strong>time to BUY? <br></strong>
</li>
</ul>


As reported by Sanghyun Park, Samsung Electronics (005930 KS) 's phase 2 buyback disposal plan appears to be virtually finalized (or will be finalized soon - not official yet).
As always, we’ll assess what our tactical models suggest about the trend from here—interpreted alongside the latest catalysts.
We have been monitoring Samsung Electronics (005930 KS) for a while: the stock has been bottoming, then flat for a while, rallied modestly, now a minor pullback... time to BUY?  



Samsung Electronics (005930 KS) Tactical Outlook Amid Rumored Phase 2 Buyback Confirmation

Fintech & EM-focused Analyst, KT Capital Group

Alec Tseung

Fintech & EM-focused Analyst

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Private Capital Markets

FWD Group Holdings / Private Capital Markets

<ul>
<li>The saga of CK Hutchison's Panama Canal Ports sale might also impact FWD due to tensions between China and the Li family.</li>
<li>Despite minimal mainland China presence, FWD faces exposure through its significant HK and Macau operations; HK and Macau contributed 40% - 50% of the group's VNB and operating profits.</li>
<li>After FWD's failed IPO attempts, PCG might consider a strategic sale for liquidity; FWD might offer a good strategic fit to Korean insurers looking to expand to Southeast Asia. </li>
</ul>


The saga of CK Hutchison's Panama Canal Ports sale might also impact FWD due to tensions between China and the Li family.
Despite minimal mainland China presence, FWD faces exposure through its significant HK and Macau operations; HK and Macau contributed 40% - 50% of the group's VNB and operating profits.
After FWD's failed IPO attempts, PCG might consider a strategic sale for liquidity; FWD might offer a good strategic fit to Korean insurers looking to expand to Southeast Asia. 


FWD: An Ideal Acquisition Target for Korean Insurers?

Samsung Electronics Pref Shares / Event-Driven

<ul>
<li>If ₩500B comes from common shares, about 40M shares retire, raising Samsung Life and Fire stakes to 10.07%, requiring a ₩0.23T block sale to trim excess.</li>
<li>Slightly smaller than last time but still notable, the insurers acted fast in February. Expect a ~0.07% block trade soon, though price impact was mild previously.</li>
<li>Watch for preferred share outperformance as phase two buyback hits 0.66% common vs. 0.81% preferred (effective buyback assuming cancellation); similar dynamics may repeat in the larger ₩4T phase three buyback.</li>
</ul>


If ₩500B comes from common shares, about 40M shares retire, raising Samsung Life and Fire stakes to 10.07%, requiring a ₩0.23T block sale to trim excess.
Slightly smaller than last time but still notable, the insurers acted fast in February. Expect a ~0.07% block trade soon, though price impact was mild previously.
Watch for preferred share outperformance as phase two buyback hits 0.66% common vs. 0.81% preferred (effective buyback assuming cancellation); similar dynamics may repeat in the larger ₩4T phase three buyback.


Samsung Electronics’ Phase 2 Buyback Disposal Plan Virtually Finalized: Two Key Trading Implications

South Korea

Samsung Life Insurance Co., Ltd. provides insurance services. The Company offers life and health insurance services. Samsung Life Insurance serves customers in South Korea.

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Samsung Life Insurance (032830 KS)

Clearing Confusion on Samsung C&T’s Forced Holding Co Conversion: Key Trade Angle in Biologics Split

This post clears up the confusion around Samsung C&T’s forced holding company conversion — here’s the key short-term trade angle from the Biologics...

Sanghyun Park

Intel Summary on Samsung Biologics Split and Samsung C&T’s Acquisition of Samsung Electronics Shares

This post breaks down the latest intel on Samsung Biologics’ split and Samsung C&T’s move to snap up Samsung Electronics shares.

Sanghyun Park

Samsung Electronics (005930 KS) Tactical Outlook Amid Rumored Phase 2 Buyback Confirmation

Tactical outlook and analysis of Samsung Electronics’ trend patterns—and whether it’s time to buy—amid rumors that Phase 2 of the buyback disposal...

Nico Rosti

FWD: An Ideal Acquisition Target for Korean Insurers?

FWD decided to make another IPO application in Hong Kong on Monday (19th), given the recent share price rebound in the market. This is the 3rd...

Alec Tseung

Samsung Electronics’ Phase 2 Buyback Disposal Plan Virtually Finalized: Two Key Trading Implications

This post covers the virtual finalization of Samsung Electronics’ Phase 2 buyback disposal plan and highlights two key trading implications.

Sanghyun Park

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