Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>We have a positive view of SK Networks' tender offer of SK Rent-A-Car.</li>
<li>SK Networks is trying to buy the entire SK Rent-A-Car which is enjoying solid growth in sales and profits. SK Networks plans to eventually delist SK Rent-A-Car.</li>
<li>The shareholders of SK Rent-A-Car have a choice of tendering their shares receiving cash (at the tender offer price of 13,500 won) or receiving shares in SK Networks.</li>
</ul>


We have a positive view of SK Networks' tender offer of SK Rent-A-Car.
SK Networks is trying to buy the entire SK Rent-A-Car which is enjoying solid growth in sales and profits. SK Networks plans to eventually delist SK Rent-A-Car.
The shareholders of SK Rent-A-Car have a choice of tendering their shares receiving cash (at the tender offer price of 13,500 won) or receiving shares in SK Networks.


SK Networks Launches a Tender Offer for SK Rent-A-Car

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Korean car rental play <a href="https://www.smartkarma.com/entities/sk-rent-a-car-co-ltd" target="_blank" data-smartkarma-citation="entities:16236:1" rel="noopener">SK Rent A Car (068400 KS)</a> has announced a Tender Offer from<a href="https://www.smartkarma.com/entities/sk-networks-co-ltd" target="_blank" data-smartkarma-citation="entities:20578:1" rel="noopener"> SK Networks (001740 KS)</a>, its largest shareholder with ~76%. </li>
<li>SK Rent shareholders have the option of receiving cash or SK Networks scrip. Appraisal rights are also afforded. </li>
<li>The shareholder vote is a lock. The current trade is the cash offer, which is trading tight to terms. </li>
</ul>


Korean car rental play SK Rent A Car (068400 KS) has announced a Tender Offer from SK Networks (001740 KS), its largest shareholder with ~76%. 
SK Rent shareholders have the option of receiving cash or SK Networks scrip. Appraisal rights are also afforded. 
The shareholder vote is a lock. The current trade is the cash offer, which is trading tight to terms. 


<ul>
<li>I tally 48 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>Three new deals this week: the <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a>/<a href="https://www.smartkarma.com/entities/celltrion-healthcare-co-ltd" target="_blank" data-smartkarma-citation="entities:23641:1" rel="noopener">Celltrion Healthcare (091990 KS)</a> merger; and the Tender Offers for <a href="https://www.smartkarma.com/entities/sanei-architecture-planning" target="_blank" data-smartkarma-citation="entities:2065:1" rel="noopener">Sanei Architecture Planning (3228 JP)</a> and <a href="https://www.smartkarma.com/entities/t-k-toka-co-ltd" target="_blank" data-smartkarma-citation="entities:18678:1" rel="noopener">T&amp;K Toka (4636 JP)</a>.</li>
<li>Key updates took place for <a href="https://www.smartkarma.com/entities/tesserent-ltd" target="_blank" data-smartkarma-citation="entities:30716:1" rel="noopener">Tesserent Ltd (TNT AU)</a>, <a href="https://www.smartkarma.com/entities/ddh1-ltd" target="_blank" data-smartkarma-citation="entities:36022:1" rel="noopener">DDH1 (DDH AU)</a>, <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a>, <a href="https://www.smartkarma.com/entities/metro-pacific-investments-co" target="_blank" data-smartkarma-citation="entities:1054:1" rel="noopener">Metro Pacific Investments Co (MPI PM)</a>, and <a href="https://www.smartkarma.com/entities/chindata-group-holdings-adr" target="_blank" data-smartkarma-citation="entities:29274:1" rel="noopener">Chindata Group (CD US)</a>.</li>
</ul>


I tally 48 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals this week: the Celltrion Inc (068270 KS)/Celltrion Healthcare (091990 KS) merger; and the Tender Offers for Sanei Architecture Planning (3228 JP) and T&amp;K Toka (4636 JP).
Key updates took place for Tesserent Ltd (TNT AU), DDH1 (DDH AU), L'Occitane (973 HK), Metro Pacific Investments Co (MPI PM), and Chindata Group (CD US).


(Mostly) Asia-Pac Weekly Risk Arb Wrap: Celltrion, Sanei Architecture, T&K Toka, MPI, Chindata

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>With just the SK Networks stake, both of these conditions are already satisfied. So, the key point will be how quickly the spread of the cash offer narrows next Monday.</li>
<li>We need to watch whether the spread for the exchange offer opens. As SK Networks is a K200 constituent, it's subject to short selling, making a Long Short play possible.</li>
<li>Worth noting, among the 24% minority shareholders, NPS and KIT hold a combined 15%, potentially leading to limited market circulation volume. This is something we should also be mindful of.</li>
</ul>


With just the SK Networks stake, both of these conditions are already satisfied. So, the key point will be how quickly the spread of the cash offer narrows next Monday.
We need to watch whether the spread for the exchange offer opens. As SK Networks is a K200 constituent, it's subject to short selling, making a Long Short play possible.
Worth noting, among the 24% minority shareholders, NPS and KIT hold a combined 15%, potentially leading to limited market circulation volume. This is something we should also be mindful of.


Fully Disseting SK Rent A Car's Hybrid Tender Offer Disclosure, Whose Cash Offer at a 5.7% Spread

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/socar-inc" target="_blank" data-smartkarma-citation="entities:29693:1" rel="noopener">SOCAR (403550 KS)</a> was listed on 22nd Aug 2022, where it raised US$78m in its Korea IPO. Its one-year lockup will expire on 21st Aug 2023. </li>
<li>SoCar is a Korean car sharing business aiming to become an all-in-one mobility solutions provider, with approximately 83% domestic market share in the car sharing space as of 1H23. </li>
<li>In this note, we will talk about the lock-up dynamics and updates since our last note.</li>
</ul>



SOCAR (403550 KS) was listed on 22nd Aug 2022, where it raised US$78m in its Korea IPO. Its one-year lockup will expire on 21st Aug 2023. 
SoCar is a Korean car sharing business aiming to become an all-in-one mobility solutions provider, with approximately 83% domestic market share in the car sharing space as of 1H23. 
In this note, we will talk about the lock-up dynamics and updates since our last note.


SoCar Lock-Up - Close to All-Time Low but Can Expect Some Post-Lockup Selling

South Korea

SK Rent A Car Co., Ltd. provides cars rental and leasing services. The Company also offers passenger car leasing, and other motor vehicles leasing services. SK Rent A Car also offers used cars distribution services.

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SK Rent A Car (068400 KS)

SK Networks Launches a Tender Offer for SK Rent-A-Car

We have a positive view of SK Networks' tender offer of SK Rent-A-Car. The valuations based on EV/EBITDA is cheaper for SK Rent-A-Car versus SK...

Douglas Kim

SK Rent A Car: SK Networks' Tender Offer

Trading tight (0.8% gross spread) to the cash terms; and negative 5.1% to the share swap ratio. IF the cash spread were to widen materially, get...

David Blennerhassett

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Celltrion, Sanei Architecture, T&K Toka, MPI, Chindata

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Fully Disseting SK Rent A Car's Hybrid Tender Offer Disclosure, Whose Cash Offer at a 5.7% Spread

This post fully dissects the disclosure about the hybrid tender offer, which combines exchange and cash offers, for SK Rent A Car by SK Networks,...

Sanghyun Park

SoCar Lock-Up - Close to All-Time Low but Can Expect Some Post-Lockup Selling

SOCAR's (403550 KS) one-year lockup will expire on 21st Aug 2023. In this note, we will talk about the lock-up dynamics and updates since our last...

Ethan Aw

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