Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>On 7 November, it was announced that EQT Partners is acquiring a controlling stake (34.85%) in Douzone Bizon (012510 KS) for about 1.3 trillion won (US$900 million).</li>
<li>The acquisition price is 120,000 won per share (44.9% higher than the closing price on Friday).</li>
<li>There was no other announcement regarding tender offer of the remaining minority shares and some investors are likely to have bailed out after this disappointment. </li>
</ul>


On 7 November, it was announced that EQT Partners is acquiring a controlling stake (34.85%) in Douzone Bizon (012510 KS) for about 1.3 trillion won (US$900 million).
The acquisition price is 120,000 won per share (44.9% higher than the closing price on Friday).
There was no other announcement regarding tender offer of the remaining minority shares and some investors are likely to have bailed out after this disappointment. 


EQT Partners Acquires a Controlling Stake in Douzone Bizon

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.

Event-Driven

<ul>
<li>EQT appears to be focused on IRR, prioritizing integration over equity; TOB looks low-return, rights issue chatter spooked markets today, so TOB-driven positioning isn’t realistic near term.</li>
<li>EQT also faces risks: FSS cap raise approval and a relatively light 34.85% stake limiting exit flexibility. Still, there’s a tactical angle in play.</li>
<li>EQT skipping TOB, but stealthy on-screen buys could spark a flow bounce; local market still eyes short-term setup trade on gradual stake-building.</li>
</ul>


EQT appears to be focused on IRR, prioritizing integration over equity; TOB looks low-return, rights issue chatter spooked markets today, so TOB-driven positioning isn’t realistic near term.
EQT also faces risks: FSS cap raise approval and a relatively light 34.85% stake limiting exit flexibility. Still, there’s a tactical angle in play.
EQT skipping TOB, but stealthy on-screen buys could spark a flow bounce; local market still eyes short-term setup trade on gradual stake-building.


Douzone Bizon Situation: TOB Setup Looks Weak; Risks Remain, but Still a Tactical Angle in Play

<ul>
<li>It was reported in Seoul Economic Daily today that EQT Partners is close to acquiring a controlling stake (31.4%) in Douzone Bizon (012510 KS).</li>
<li>A 31.4% stake of Douzone is now worth  0.91 trillion won (with no premium or discount). </li>
<li>Douzone's chairman Kim has demanded up to twice the market cap of the company for the management rights premium. </li>
</ul>


It was reported in Seoul Economic Daily today that EQT Partners is close to acquiring a controlling stake (31.4%) in Douzone Bizon (012510 KS).
A 31.4% stake of Douzone is now worth  0.91 trillion won (with no premium or discount). 
Douzone's chairman Kim has demanded up to twice the market cap of the company for the management rights premium. 


EQT Partners - To Acquire a Controlling Stake In Douzone Bizon & A Tender Offer of Minority Shares?

<ul>
<li>Founder Kim reportedly looking to offload his 21.5% stake, with EQT eyeing a ~30% control block including Shinhan’s. No succession plans, deal said to be under serious review.</li>
<li>Kim’s control premium ask could trigger Korea’s first test case of expanded fiduciary duty, with minority holders potentially suing if tender terms aren’t seen as fair under new rules.</li>
<li>Buyer likely prepping a Q3 tender offer; key watch is how minority premium stacks vs control block — could be Korea’s first de facto test case of mandatory tender mechanics.</li>
</ul>


Founder Kim reportedly looking to offload his 21.5% stake, with EQT eyeing a ~30% control block including Shinhan’s. No succession plans, deal said to be under serious review.
Kim’s control premium ask could trigger Korea’s first test case of expanded fiduciary duty, with minority holders potentially suing if tender terms aren’t seen as fair under new rules.
Buyer likely prepping a Q3 tender offer; key watch is how minority premium stacks vs control block — could be Korea’s first de facto test case of mandatory tender mechanics.


Douzone Bizon: First Real Test for Korea’s De Facto Mandatory Tender?

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Nov 14th. The aggregated short interest was USD11.9bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Doosan Enerbility, HD HYUNDAI HEAVY INDUSTRIES, Alteogen, HanmiPharm, SK Hynix.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Nov 14th. The aggregated short interest was USD11.9bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Doosan Enerbility, HD HYUNDAI HEAVY INDUSTRIES, Alteogen, HanmiPharm, SK Hynix.


KRX Short Interest Weekly (Nov 14th): Doosan Enerbility, HD HYUNDAI HEAVY INDUSTRIES, Alteogen

South Korea

Douzone Bizon Co., Ltd. develops and markets computer software.  The company develops MIS, ERP, e-Business Solutions, EFIS, SEM(Strategic Enterprise Management), BPS(Business Process Management), and ERM(Enterprise Risk Management). The Company's products target small and medium-sized enterprises.

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Douzone Bizon (012510 KS)

EQT Partners Acquires a Controlling Stake in Douzone Bizon

EQT Partners is acquiring a controlling stake (34.85%) in Douzone Bizon for about 1.3 trillion won. The acquisition price is 120,000 won per share...

Douglas Kim

Douzone Bizon Situation: TOB Setup Looks Weak; Risks Remain, but Still a Tactical Angle in Play

This post takes a look at the Douzone Bizon situation: the TOB setup appears weak, risks remain, yet a tactical angle is still in play.

Sanghyun Park

EQT Partners - To Acquire a Controlling Stake In Douzone Bizon & A Tender Offer of Minority Shares?

It was reported in Seoul Economic Daily today that EQT Partners is close to acquiring a controlling stake (31.4%) in Douzone Bizon (012510 KS).

Douglas Kim

Douzone Bizon: First Real Test for Korea’s De Facto Mandatory Tender?

Commercial Act revision now in effect: Douzone Bizon could be the first real test case of a de facto mandatory tender under the new rules.

Sanghyun Park

KRX Short Interest Weekly (Nov 14th): Doosan Enerbility, HD HYUNDAI HEAVY INDUSTRIES, Alteogen

We analyzed KRX short interest report for the past week and highlighted short interest changes in Doosan Enerbility, HD HYUNDAI HEAVY INDUSTRIES,...

Ke Yan, CFA, FRM

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