Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

Shinsegae Eng & Construction / Event-Driven

<ul>
<li>E Mart Inc (139480 KS) is conducting a tender offer of 27.33% of Shinsegae Eng &amp; Construction (034300 KS) (2,126,611 shares) and trying to take the company private afterwards.</li>
<li>The tender offer price is 18,300 won, which is 14% higher than the closing price on Friday (27 September).</li>
<li>Tender offer is likely to result in higher price of Shinsegae E&amp;C in the near term but it could be difficult for E Mart to take it private this year. </li>
</ul>


E Mart Inc (139480 KS) is conducting a tender offer of 27.33% of Shinsegae Eng &amp; Construction (034300 KS) (2,126,611 shares) and trying to take the company private afterwards.
The tender offer price is 18,300 won, which is 14% higher than the closing price on Friday (27 September).
Tender offer is likely to result in higher price of Shinsegae E&amp;C in the near term but it could be difficult for E Mart to take it private this year. 


Tender Offer and Taking Private of Shinsegae E&C by E Mart

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>E Mart Inc is launching a tender offer for 27.33% of Shinsegae Eng &amp; Construction, offering ₩18,300 per share, a 14% premium, from September 30 to October 29.</li>
<li>This tender’s got zero cancellation or proration risk since they’re all in to buy every share tendered. That makes it a prime event for close spread tracking and trading opportunities.</li>
<li>Emart needs 95% of Shinsegae Construction's shares to delist, requiring 22% of the remaining 27%. If they can't get it, a stock swap with Emart shares is likely.</li>
</ul>


E Mart Inc is launching a tender offer for 27.33% of Shinsegae Eng &amp; Construction, offering ₩18,300 per share, a 14% premium, from September 30 to October 29.
This tender’s got zero cancellation or proration risk since they’re all in to buy every share tendered. That makes it a prime event for close spread tracking and trading opportunities.
Emart needs 95% of Shinsegae Construction's shares to delist, requiring 22% of the remaining 27%. If they can't get it, a stock swap with Emart shares is likely.


Emart's Tender Offer for Shinsegae Construction: Arb Trading Angles

Equity Bottom-Up

<ul>
<li>One of the biggest stories in the Korean e-commerce sector this week has been TMON and WeMakePrice filing for court receivership due to liquidity crisis. </li>
<li>Singapore's Qoo10 is the controlling shareholder of TMON and WeMakePrice. Young-Bae Ku is the largest shareholder of Qoo10 with a 42.77% stake, followed by KKR with a 25.65% stake. </li>
<li>Competitors such as E-Mart and Coupang are most to benefit. PG companies such as KG Inicis and NHP KCP are negatively impacted. </li>
</ul>


One of the biggest stories in the Korean e-commerce sector this week has been TMON and WeMakePrice filing for court receivership due to liquidity crisis. 
Singapore's Qoo10 is the controlling shareholder of TMON and WeMakePrice. Young-Bae Ku is the largest shareholder of Qoo10 with a 42.77% stake, followed by KKR with a 25.65% stake. 
Competitors such as E-Mart and Coupang are most to benefit. PG companies such as KG Inicis and NHP KCP are negatively impacted. 


TMON and WeMakePrice File for Court Receivership - Impact on the Korean E-Commerce and PG Sectors

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>PDD US/BABA US/JD US/3690 HK/VIPS US: NBS publishes data social retail consumption data for May 2024 (+/+/+/+/-)</li>
<li>700 HK: &lt;Need for Speed Mobile&gt; to officially launch on July 11, with pre-registration surpassed 26 mn (+)</li>
<li>CPNG/BABA/TEMU/139480.KR:Coupang told to stop favoring its own products in its algorithm (-/+/+)</li>
</ul>


PDD US/BABA US/JD US/3690 HK/VIPS US: NBS publishes data social retail consumption data for May 2024 (+/+/+/+/-)
700 HK: &lt;Need for Speed Mobile&gt; to officially launch on July 11, with pre-registration surpassed 26 mn (+)
CPNG/BABA/TEMU/139480.KR:Coupang told to stop favoring its own products in its algorithm (-/+/+)


[Blue Lotus Daily - TMT Update]:PDD/BABA /JD/3690HK/VIPS/700HK/CPNG/TEMU/13948 KR/TCOM/ATAT/BILI

<ul>
<li>Talks circulate that E-Mart may sell its 5% stake in Samsung Life Insurance, valued around ₩1T, due to fundraising needs linked to SSG.com investors' put options.</li>
<li>Initially, Starbucks Korea was a potential sale, but U.S. HQ approval makes it unfeasible. Shinsegae L&amp;B and Food weren't enough to raise funds, leading E-Mart to focus on Samsung Life.</li>
<li>E-Mart's block deal timing is uncertain due to potential legal disputes over unmet put option conditions, yet recent local market discussions suggest E-Mart may avoid legal battles.</li>
</ul>


Talks circulate that E-Mart may sell its 5% stake in Samsung Life Insurance, valued around ₩1T, due to fundraising needs linked to SSG.com investors' put options.
Initially, Starbucks Korea was a potential sale, but U.S. HQ approval makes it unfeasible. Shinsegae L&amp;B and Food weren't enough to raise funds, leading E-Mart to focus on Samsung Life.
E-Mart's block deal timing is uncertain due to potential legal disputes over unmet put option conditions, yet recent local market discussions suggest E-Mart may avoid legal battles.


Potential Samsung Life Insurance Block Deals, Likely to Be Triggered by E Mart

South Korea

E-MART Inc. operates E-Mart discount stores. The Company retails food, clothing, household goods, electronics, and other items through several branch stores.

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E Mart Inc (139480 KS)

Tender Offer and Taking Private of Shinsegae E&C by E Mart

The tender offer is likely to result in higher share price of Shinsegae E&C in the near term but it could be difficult for E Mart to take the...

Douglas Kim

Emart's Tender Offer for Shinsegae Construction: Arb Trading Angles

Emart is about to drop a regulatory filing for a tender offer targeting Shinsegae Construction shareholders before the market opens today. This...

Sanghyun Park

TMON and WeMakePrice File for Court Receivership - Impact on the Korean E-Commerce and PG Sectors

TMON and WeMakePrice filing for court receivership is likely to benefit competitors such as E-Mart and Coupang. Payment Gateway (PG) companies such...

Douglas Kim

[Blue Lotus Daily - TMT Update]:PDD/BABA /JD/3690HK/VIPS/700HK/CPNG/TEMU/13948 KR/TCOM/ATAT/BILI

NBS releases social retail consumption data for May 2024, Need for Speed Mobile to launch on July 11 with 26 mn pre-registrations, Coupang told to...

Blue Lotus Research Institute

Potential Samsung Life Insurance Block Deals, Likely to Be Triggered by E Mart

SSG.com’s major shareholders, E-Mart and Shinsegae, are expected to approve the repurchase of a 30% FI stake for 1.15 trillion KRW at a board...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tender Offer and Taking Private of Shinsegae E&C by E Mart

The tender offer is likely to result in higher share price of Shinsegae E&C in the near term but it could be difficult for E Mart to take the...

Douglas Kim

Emart's Tender Offer for Shinsegae Construction: Arb Trading Angles

Emart is about to drop a regulatory filing for a tender offer targeting Shinsegae Construction shareholders before the market opens today. This...

Sanghyun Park

TMON and WeMakePrice File for Court Receivership - Impact on the Korean E-Commerce and PG Sectors

TMON and WeMakePrice filing for court receivership is likely to benefit competitors such as E-Mart and Coupang. Payment Gateway (PG) companies such...

Douglas Kim

[Blue Lotus Daily - TMT Update]:PDD/BABA /JD/3690HK/VIPS/700HK/CPNG/TEMU/13948 KR/TCOM/ATAT/BILI

​NBS releases social retail consumption data for May 2024, Need for Speed Mobile to launch on July 11 with 26 mn pre-registrations, Coupang told to...

Blue Lotus Research Institute

Potential Samsung Life Insurance Block Deals, Likely to Be Triggered by E Mart

SSG.com’s major shareholders, E-Mart and Shinsegae, are expected to approve the repurchase of a 30% FI stake for 1.15 trillion KRW at a board...

Sanghyun Park

NBS releases social retail consumption data for May 2024, Need for Speed Mobile to launch on July 11 with 26 mn pre-registrations, Coupang told to...