Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>It seems to be spin-off season in Korea.</p><p>Three <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> constituents will be suspended from trading from 29 April - <a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a>, <a href="https://www.smartkarma.com/entities/f-f-co-ltd" target="_blank" data-smartkarma-citation="entities:15983:1" rel="noopener">F&amp;F Co Ltd (007700 KS)</a> and <a href="https://www.smartkarma.com/entities/ecopro-co-ltd" target="_blank" data-smartkarma-citation="entities:19029:1" rel="noopener">Ecopro Co Ltd (086520 KS)</a> due to a spin-off of its businesses.</p><p><a href="https://www.smartkarma.com/entities/f-f-co-ltd" target="_blank" data-smartkarma-citation="entities:15983:1" rel="noopener">F&amp;F Co Ltd (007700 KS)</a> will resume trading on 21 May, <a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a> will resume trading on 27 May, and <a href="https://www.smartkarma.com/entities/ecopro-co-ltd" target="_blank" data-smartkarma-citation="entities:19029:1" rel="noopener">Ecopro Co Ltd (086520 KS)</a> will resume trading on 28 May.</p><p><a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a> will remain in the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> and its spinoff will be added to the index, <a href="https://www.smartkarma.com/entities/f-f-co-ltd" target="_blank" data-smartkarma-citation="entities:15983:1" rel="noopener">F&amp;F Co Ltd (007700 KS)</a> will remain in the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> but the spinoff will not be added to the index, <a href="https://www.smartkarma.com/entities/ecopro-co-ltd" target="_blank" data-smartkarma-citation="entities:19029:1" rel="noopener">Ecopro Co Ltd (086520 KS)</a> will continue to be a <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> constituent though its spinoff will not be included in the index.</p><p>In this Insight, we look at the index treatment, the impact of passive flow on the stocks, and the impact of the changes on the June rebalance of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a>. </p>

It seems to be spin-off season in Korea.Three Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) and KOSDAQ 150 Index (KOSDQ150 INDEX) constituents will be suspended from trading from 29 April - LG Corp (003550 KS), F&amp;F Co Ltd (007700 KS) and Ecopro Co Ltd (086520 KS) due to a spin-off of its businesses.F&amp;F Co Ltd (007700 KS) will resume trading on 21 May, LG Corp (003550 KS) will resume trading on 27 May, and Ecopro Co Ltd (086520 KS) will resume trading on 28 May.LG Corp (003550 KS) will remain in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) and its spinoff will be added to the index, F&amp;F Co Ltd (007700 KS) will remain in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) but the spinoff will not be added to the index, Ecopro Co Ltd (086520 KS) will continue to be a KOSDAQ 150 Index (KOSDQ150 INDEX) constituent though its spinoff will not be included in the index.In this Insight, we look at the index treatment, the impact of passive flow on the stocks, and the impact of the changes on the June rebalance of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX). 

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 DL Holdings (000210) - DL E&amp;C (375500) tender begins today. This is an exchange offer, not a cash offer.</p><p>The tender price is ₩118,085 for DL E&amp;C at an issue price of ₩89,829 for DL Holdings (000210). The swap ratio is 1.31455. You get 1.31455 Holdings shares for each DL E&amp;C share that you tender.</p><p>For the tender, Holdings issues 11M new shares, which will get listed on June 3.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Overview"}'>Overview</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Type"}'>Type</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Exchange offer"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>Exchange offer</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Swap ratio"}'><strong>Swap ratio</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.314553206648187}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=R[10]C[0]/R[4]C[0]"><strong>1.31455</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Tender originator"}'>Tender originator</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"DL Holdings Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>DL Holdings Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Ticker"}'>- Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"000210"}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula='="000210"'>000210</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Issue volume"}'>- Issue volume</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11042246}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>11,042,246</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Issue price"}'><strong>- Issue price</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":89829}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩89,829</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target company"}'>Target company</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"DL E&amp;C Ord Shs"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>DL E&amp;C Ord Shs</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Ticker"}'>- Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"375500"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="375500"'>375500</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Tender volume"}'>- Tender volume</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8400000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>8,400,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of shares outstanding"}'>- % of shares outstanding</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4339125825247493}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[1]C[0]">43.39%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Shares outstanding"}'>- Shares outstanding</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":19358738}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[-3]C[0], "shares")'>19,358,738</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Tender price"}'><strong>- Tender price</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":118085}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩118,085</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Target value"}'>- Target value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":991914000000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-1]C[0]*R[-4]C[0]">₩991,914,000,000</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Timetable"}'>Timetable</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Announcement"}'>Announcement</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44274}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 19</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Tender offer begins"}'><strong>Tender offer begins</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44307}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 4. 21</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Tender offer ends"}'><strong>Tender offer ends</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44326}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 5. 10</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Payment"}'>Payment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44328}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 5. 12</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Listing"}'>Listing</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44350}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 6. 3</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Tender price fixation"}'>Tender price fixation</td></tr>
<tr>
<td data-sheets-value='{"1":3,"3":44246}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 2. 19</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":113500}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩113,500</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44249}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 2. 22</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":111000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩111,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44250}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 2. 23</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":110500}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩110,500</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44251}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 2. 24</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":104000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩104,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44252}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 2. 25</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":116500}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩116,500</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44253}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 2. 26</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":111000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩111,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44257}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 2</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":109000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩109,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44258}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 3</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":111000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩111,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44259}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 4</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":111500}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩111,500</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44260}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 5</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":109500}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩109,500</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44263}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 8</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":107000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩107,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44264}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 9</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":112500}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩112,500</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44265}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 10</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":112000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩112,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44266}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 11</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":115000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩115,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44267}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 12</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":118500}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩118,500</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44270}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 15</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":121000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩121,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44271}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 16</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":121000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩121,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44272}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 17</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":123000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩123,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44273}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 3. 18</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":120000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩120,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Close(A)"}'>Close(A)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":120000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩120,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1W avg (B)"}'>1W avg (B)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":120700}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩120,700</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1M avg (C)"}'>1M avg (C)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":113553}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩113,553</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Arithmatic avg D=(A+B+C)/3"}'>Arithmatic avg D=(A+B+C)/3</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":118084.2}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩118,084</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Tender price E=Min(A,D)"}'><strong>Tender price E=Min(A,D)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":118085}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩118,085</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DRAT"}'>Source: DRAT</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Issue price"}'>Issue price fixation</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Close"}'>Close</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Trading vol(B)"}'>Trading volume (B)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Trading val (A)"}'>Trading value (A)</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44300}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 4. 14</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":89600}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩89,600</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":484546}' data-sheets-numberformat='[null,2,"#,##0"]'>484,546</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":42999717200}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩42,999,717,200</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44301}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 4. 15</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":91200}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩91,200</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":293437}' data-sheets-numberformat='[null,2,"#,##0"]'>293,437</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":26480660600}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩26,480,660,600</td>
</tr>
<tr>
<td data-sheets-value='{"1":3,"3":44302}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 4. 16</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":92000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩92,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":221902}' data-sheets-numberformat='[null,2,"#,##0"]'>221,902</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20338222700}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩20,338,222,700</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total trading val (A)"}'>Total trading value (A)</td>
<td colspan="3" rowspan="1" style="text-align: right;" data-sheets-value='{"1":3,"3":89818600500}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩89,818,600,500</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total trading vol (B)"}'>Total trading volume (B)</td>
<td colspan="3" rowspan="1" style="text-align: right;" data-sheets-value='{"1":3,"3":999885}' data-sheets-numberformat='[null,2,"#,##0"]'>999,885</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"VWAP (A/B)"}'>VWAP (A/B)</td>
<td colspan="3" rowspan="1" style="text-align: right;" data-sheets-value='{"1":3,"3":89828.93}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩89,829</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Discount"}'>Discount</td>
<td colspan="3" rowspan="1" style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='[null,3,"0.00%",1]'>0.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Issue price"}'><strong>Issue price</strong></td>
<td colspan="3" rowspan="1" style="text-align: right;" data-sheets-value='{"1":3,"3":89829}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'><strong>₩89,829</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

The DL Holdings (000210) - DL E&amp;C (375500) tender begins today. This is an exchange offer, not a cash offer.The tender price is ₩118,085 for DL E&amp;C at an issue price of ₩89,829 for DL Holdings (000210). The swap ratio is 1.31455. You get 1.31455 Holdings shares for each DL E&amp;C share that you tender.For the tender, Holdings issues 11M new shares, which will get listed on June 3.





Overview

Type
Exchange offer


Swap ratio
1.31455


Tender originator
DL Holdings Co Ltd


- Ticker
000210


- Issue volume
11,042,246


- Issue price
₩89,829


Target company
DL E&amp;C Ord Shs


- Ticker
375500


- Tender volume
8,400,000


- % of shares outstanding
43.39%


- Shares outstanding
19,358,738


- Tender price
₩118,085


- Target value
₩991,914,000,000

Source: DART







Timetable

Announcement
2021. 3. 19


Tender offer begins
2021. 4. 21


Tender offer ends
2021. 5. 10


Payment
2021. 5. 12


Listing
2021. 6. 3

Source: DART







Tender price fixation

2021. 2. 19
₩113,500


2021. 2. 22
₩111,000


2021. 2. 23
₩110,500


2021. 2. 24
₩104,000


2021. 2. 25
₩116,500


2021. 2. 26
₩111,000


2021. 3. 2
₩109,000


2021. 3. 3
₩111,000


2021. 3. 4
₩111,500


2021. 3. 5
₩109,500


2021. 3. 8
₩107,000


2021. 3. 9
₩112,500


2021. 3. 10
₩112,000


2021. 3. 11
₩115,000


2021. 3. 12
₩118,500


2021. 3. 15
₩121,000


2021. 3. 16
₩121,000


2021. 3. 17
₩123,000


2021. 3. 18
₩120,000


Close(A)
₩120,000


1W avg (B)
₩120,700


1M avg (C)
₩113,553


Arithmatic avg D=(A+B+C)/3
₩118,084


Tender price E=Min(A,D)
₩118,085

Source: DRAT










Issue price fixation
Close
Trading volume (B)
Trading value (A)


2021. 4. 14
₩89,600
484,546
₩42,999,717,200


2021. 4. 15
₩91,200
293,437
₩26,480,660,600


2021. 4. 16
₩92,000
221,902
₩20,338,222,700


Total trading value (A)
₩89,818,600,500


Total trading volume (B)
999,885


VWAP (A/B)
₩89,829


Discount
0.00%


Issue price
₩89,829

Source: DART



DL Holdings/E&C Tender & Shorting Lurking for What Will Likely Follow

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<p>Daelim Industrial's BOD and shareholders agreed to spin-off the company into <a href="https://www.smartkarma.com/entities/dl-e-c-co-ltd" target="_blank" data-smartkarma-citation="entities:31375:1" rel="noopener">DL E&amp;C Co Ltd (375500 KS)</a> and <a href="https://www.smartkarma.com/entities/daelim-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:18095:1" rel="noopener">DL Co Ltd (000210 KS)</a> in December 2020. DL E&amp;C and DL Corp shares started trading again on 25 January 2021. DL E&amp;C and DL Corp's market caps are 2.45 trillion won and 1.08 trillion won, respectively as of 26 January 2021. The combined market caps of the two companies are 3.53 trillion won, up more than 20% from the pre-spin off levels. DL E&amp;C makes some of the best apartments in Korea and this is their bread and butter business. </p><div>Hyundai E&amp;C, GS E&amp;C, HDC Hyundai Development, and Daewoo E&amp;C are the most appropriate comps to DL E&amp;C. These four comps are currently trading at P/E (2021E) ratios 11.8x, 6.1x, 5.6x, and 6.9x, respectively, using the consensus earnings estimates. The average P/E ratio of these four companies is 7.6x. If we apply 7.6x P/E on the estimated net profit of 660 billion won, this would suggest an implied market cap of 5.0 trillion won, which would be nearly 100% upside from the current market cap of 2.4 trillion won. If we use the lowest P/E multiple of the comps (5.6x) and apply to the estimated net profit of 660 billion won, this would suggest a market cap of 3.7 trillion won, which would be 51% higher than its current market cap. </div>

Daelim Industrial's BOD and shareholders agreed to spin-off the company into DL E&amp;C Co Ltd (375500 KS) and DL Co Ltd (000210 KS) in December 2020. DL E&amp;C and DL Corp shares started trading again on 25 January 2021. DL E&amp;C and DL Corp's market caps are 2.45 trillion won and 1.08 trillion won, respectively as of 26 January 2021. The combined market caps of the two companies are 3.53 trillion won, up more than 20% from the pre-spin off levels. DL E&amp;C makes some of the best apartments in Korea and this is their bread and butter business. Hyundai E&amp;C, GS E&amp;C, HDC Hyundai Development, and Daewoo E&amp;C are the most appropriate comps to DL E&amp;C. These four comps are currently trading at P/E (2021E) ratios 11.8x, 6.1x, 5.6x, and 6.9x, respectively, using the consensus earnings estimates. The average P/E ratio of these four companies is 7.6x. If we apply 7.6x P/E on the estimated net profit of 660 billion won, this would suggest an implied market cap of 5.0 trillion won, which would be nearly 100% upside from the current market cap of 2.4 trillion won. If we use the lowest P/E multiple of the comps (5.6x) and apply to the estimated net profit of 660 billion won, this would suggest a market cap of 3.7 trillion won, which would be 51% higher than its current market cap. 

Newly Spun-Off DL E&C and DL Corp Create Higher Value

South Korea

DL E&C Co.,Ltd. provides construction services. The Company builds industrial plants, infrastructure, high-rise residential buildings, low-rise apartments, villas, and other related areas. DL E&C offers services in Korea.

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DL E&C (375500 KS)

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