Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>Premier Partners private equity firm plans to sell a total of 3.46 million shares (4.84% stake) of SK IE Technology (361610 KS) in a block deal sale.</li>
<li>Premier Partners is trying to dump its shares right after a dead cat bounce in SK IET's share price rise on 5 July.  </li>
<li>Despite the large block deal discount range, we remain negative on the SK IE Technology shares and we would avoid this block deal. Valuations remain expensive.</li>
</ul>


Premier Partners private equity firm plans to sell a total of 3.46 million shares (4.84% stake) of SK IE Technology (361610 KS) in a block deal sale.
Premier Partners is trying to dump its shares right after a dead cat bounce in SK IET's share price rise on 5 July.  
Despite the large block deal discount range, we remain negative on the SK IE Technology shares and we would avoid this block deal. Valuations remain expensive.


Block Deal Sale of SK IE Technology by Premier Partners: Trying to Dump Shares on a Dead Cat Bounce

<ul>
<li>SK Group has been the the most active M&amp;A player among the major chaebols in Korea in the past decade. SK Group is once again making some big M&amp;A moves.</li>
<li>In this insight, we discuss SK Inc and SK Innovation's plans to purchase a minority stake in Bill Gates' TerraPower nuclear SMR technology company.</li>
<li>We also discuss the recent sale of the PET film business by SKC for 1.6 trillion won and how SKC may try to acquire the controlling interests of Iljin Materials.</li>
</ul>


SK Group has been the the most active M&amp;A player among the major chaebols in Korea in the past decade. SK Group is once again making some big M&amp;A moves.
In this insight, we discuss SK Inc and SK Innovation's plans to purchase a minority stake in Bill Gates' TerraPower nuclear SMR technology company.
We also discuss the recent sale of the PET film business by SKC for 1.6 trillion won and how SKC may try to acquire the controlling interests of Iljin Materials.


SK Inc & SK Innovation Plan to Buy Stake in Bill Gates' TerraPower + SKC Sells PET Film Business

<ul>
<li>Heo Jae-Myeong, the CEO of Iljin Materials, is planning to sell his 53.3% stake in the company.</li>
<li>Potential buyers of Iljin Materials include Lotte, SK, LG, and POSCO.</li>
<li>The CEO Heo Jae-Myung could potentially receive greater amounts of money if he sells the company now, rather than waiting when the compulsory tender offer could be made into law.</li>
</ul>


Heo Jae-Myeong, the CEO of Iljin Materials, is planning to sell his 53.3% stake in the company.
Potential buyers of Iljin Materials include Lotte, SK, LG, and POSCO.
The CEO Heo Jae-Myung could potentially receive greater amounts of money if he sells the company now, rather than waiting when the compulsory tender offer could be made into law.


Iljin Materials: Is the Potential Change in Compulsory Tender Offer Forcing Owner to Speed Up Sale?

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.

Mirae Asset TIGER Secondary Cell ETF / Event-Driven

Mirae Asset TIGER Secondary Cell ETF (305540 KS)

<ul>
<li>In general, the projection hit rate for the top market cap constituents was sufficiently high. And the correlation between their stock price direction and passive flow was also high.</li>
<li>However, the projection hit rate for the constituents with a small market cap was relatively low.</li>
<li>If we traded the proposed tradable names with an equal-weighted Long/Short basket, we would have achieved a return of 1.76%. Even excluding Hanjin Kal, we would have achieved 1.31%.</li>
</ul>


In general, the projection hit rate for the top market cap constituents was sufficiently high. And the correlation between their stock price direction and passive flow was also high.
However, the projection hit rate for the constituents with a small market cap was relatively low.
If we traded the proposed tradable names with an equal-weighted Long/Short basket, we would have achieved a return of 1.76%. Even excluding Hanjin Kal, we would have achieved 1.31%.


Recap on WISE Theme Indexes (TIGER ETFs) Rebalancing Trading on April 14

<ul>
<li>Three WISE theme indexes undergo quarterly rebalancing today at the close.</li>
<li>The flow projections shown below in the DETAIL are based on the closing prices of April 12.</li>
<li>We have 13 Long/Short tradable names based on these flow projections: an ADTV of at least ₩10B &amp; a passive flow impact of 0.10x ADTV or more</li>
</ul>


Three WISE theme indexes undergo quarterly rebalancing today at the close.
The flow projections shown below in the DETAIL are based on the closing prices of April 12.
We have 13 Long/Short tradable names based on these flow projections: an ADTV of at least ₩10B &amp; a passive flow impact of 0.10x ADTV or more


WISE Theme Indexes Rebalancing Today: Flow Projections as of Close on April 12

South Korea

Lotte Energy Materials Corporation manufactures and distributes electric foils. The Company produces printed circuit board and lithium ion secondary batteries elecfoil, electrolytic and epoxy copper foil, electrolytic capacitor aluminum foil, and other related products. Lotte Energy Materials also offers energy and glass and window construction services.

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Lotte Energy Materials (020150 KS)

Block Deal Sale of SK IE Technology by Premier Partners: Trying to Dump Shares on a Dead Cat Bounce

Premier Partners private equity firm plans to sell a total of 3.46 million shares (4.84% stake) of SK IET in a block deal sale. We remain negative...

Douglas Kim

SK Inc & SK Innovation Plan to Buy Stake in Bill Gates' TerraPower + SKC Sells PET Film Business

We discuss SK Inc & SK Innovation plan to buy stake in Bill Gates' TerraPower as well as SKC selling the PET film business for 1.6 trillion won to...

Douglas Kim

Iljin Materials: Is the Potential Change in Compulsory Tender Offer Forcing Owner to Speed Up Sale?

The CEO of Iljin Materials Heo Jae-Myung could potentially receive greater amounts of money if he sells his stake now, rather than waiting when the...

Douglas Kim

Recap on WISE Theme Indexes (TIGER ETFs) Rebalancing Trading on April 14

This post is a recap of our flow trading on the WISE Theme Indexes (TIGER ETFs) rebalancing, which was carried out on April 14.

Sanghyun Park

WISE Theme Indexes Rebalancing Today: Flow Projections as of Close on April 12

Three WISE Theme Indexes undergo quarterly rebalancing today at the close. This post screens 13 tradable names for a Long/Short basket day trading.

Sanghyun Park

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