Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>Numerous local media mentioned today that Lotte Chemical (011170 KS) is getting ready to announce a major rights offering to acquire Iljin Materials.</li>
<li>The size of the rights offering has not been finalized but the range of the rights offering could be about 1 trillion won to 2 trillion won.</li>
<li>There are additional concerns about Lotte Chem funding additional capital into Lotte E&amp;C, which could face more financial difficulties in the local construction sector.</li>
</ul>


Numerous local media mentioned today that Lotte Chemical (011170 KS) is getting ready to announce a major rights offering to acquire Iljin Materials.
The size of the rights offering has not been finalized but the range of the rights offering could be about 1 trillion won to 2 trillion won.
There are additional concerns about Lotte Chem funding additional capital into Lotte E&amp;C, which could face more financial difficulties in the local construction sector.


Lotte Chemical - Ready to Announce Rights Offering Close to 2 Trillion Won?

<ul>
<li>On 27 September, it was announced that Lotte Chemical (011170 KS) is close to acquiring a 53.3% stake in Iljin Materials (020150 KS) for about 2.7 trillion won (US$1.9 billion).</li>
<li>Iljin Materials has relatively high valuation multiples. Despite recent share price decline, its shares are trading at 32.4x P/E and 15.7x EV/EBITDA in 2022. </li>
<li>At such a high valuation premium (93% higher than current prices), there are going to be significant concerns that Lotte Chem may have overpaid for this acquisition. </li>
</ul>


On 27 September, it was announced that Lotte Chemical (011170 KS) is close to acquiring a 53.3% stake in Iljin Materials (020150 KS) for about 2.7 trillion won (US$1.9 billion).
Iljin Materials has relatively high valuation multiples. Despite recent share price decline, its shares are trading at 32.4x P/E and 15.7x EV/EBITDA in 2022. 
At such a high valuation premium (93% higher than current prices), there are going to be significant concerns that Lotte Chem may have overpaid for this acquisition. 


Lotte Chemical Close to Acquiring Iljin Materials

<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.

<p>The closing date for the stock market this year is December 30 (Thursday). So, <strong>the ex-dividend date</strong> for the fourth quarter and fiscal year-end (for the December settlement companies) is <strong>December 29</strong> (Wednesday).</p><p>Among local stocks that have consistently paid dividends over the past three years, stocks with a <strong>dividend yield of 4%</strong> or higher at this point based on the FnGuide consensus DPS are as follows. Breaking down by industry, there are many financial and steel/chemical stocks in the list, which, of course, isn't surprising at all.</p><div class="content-highlight"><p>The stocks highlighted in yellow in the list below (POSCO and Shinhan Financial) are stocks that pay quarterly dividends. And the stocks highlighted in red (Hana Financial and KB Financial) pay interim dividends.</p></div><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/240/690/original/Screen+Shot+2021-11-09+at+9.27.33+AM.png?1636468072" class="editor-image img-responsive" data-smartkarma-image-id="240690"></figure></section></section>

The closing date for the stock market this year is December 30 (Thursday). So, the ex-dividend date for the fourth quarter and fiscal year-end (for the December settlement companies) is December 29 (Wednesday).Among local stocks that have consistently paid dividends over the past three years, stocks with a dividend yield of 4% or higher at this point based on the FnGuide consensus DPS are as follows. Breaking down by industry, there are many financial and steel/chemical stocks in the list, which, of course, isn't surprising at all.The stocks highlighted in yellow in the list below (POSCO and Shinhan Financial) are stocks that pay quarterly dividends. And the stocks highlighted in red (Hana Financial and KB Financial) pay interim dividends.

Korea Dividend Stocks: +4% Yearend Yield & +50% YoY Growth with +₩10B ADTV

South Korea

Lotte Chemical Corporation manufactures a wide range of petrochemical products such as high density polyethylene, polypropylene, and ethylene glycol. The Company's products are used in manufacturing general housewares, pipes, films, fabrics, bottles, containers, and automotive parts.

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Lotte Chemical (011170 KS)

Lotte Chemical - Ready to Announce Rights Offering Close to 2 Trillion Won?

Numerous local media mentioned today that Lotte Chemical (011170 KS) is getting ready to announce a major rights offering to acquire Iljin Materials.

Douglas Kim

Lotte Chemical Close to Acquiring Iljin Materials

On 27 September, it was announced that Lotte Chemical (011170 KS) is close to acquiring a 53.3% stake in Iljin Materials (020150 KS) for about 2.7...

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

Korea Dividend Stocks: +4% Yearend Yield & +50% YoY Growth with +₩10B ADTV

This post searches and filters Korea's high dividend stocks meeting the conditions of a +4% yield and a +50% YoY growth with an ADTV of ₩10B based...

Sanghyun Park

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