Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>The tender offer of Gabia Inc (079940 KS) by Macquarie Asset Management has failed.</li>
<li>A total of 0.72 million shares of Gabia were tendered by the minority shareholders, representing only 5.4% of outstanding shares, failing to meet minimum target number of shares (3.27 million).</li>
<li>Failure of this tender offer suggests that many minority shareholders of Gabia believe the intrinsic value of Gabia is much higher. Therefore, this is a long-term positive on the company. </li>
</ul>


The tender offer of Gabia Inc (079940 KS) by Macquarie Asset Management has failed.
A total of 0.72 million shares of Gabia were tendered by the minority shareholders, representing only 5.4% of outstanding shares, failing to meet minimum target number of shares (3.27 million).
Failure of this tender offer suggests that many minority shareholders of Gabia believe the intrinsic value of Gabia is much higher. Therefore, this is a long-term positive on the company. 


A Tender Offer of Gabia by Macquarie Fails - Minority Shareholders Believe Its Value Is Much Higher

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>On the 20th July, Macquarie Asset Management launched a voluntary public Tender Offer to acquire full control of <strong><a href="https://www.smartkarma.com/entities/gabia-inc" target="_blank" data-smartkarma-citation="entities:13535:1" rel="noopener">Gabia (079940 KS)</a>, </strong>and take it private.</li>
<li>Macquarie is offering ₩48,000/share, a 41.6% premium to undisturbed. Macquarie is targeting 9.8mn shares (73.1% of shares out) with a minimum of 3.3mn (24.3%). Management holding 24.37% are supportive.</li>
<li>Activist fund Align Partners holds ~14.29%. Miri Capital holds 24.2%. Neither are largely supportive, implying Macquarie requires ~71% of disinterested shareholders to tender to meet the minimum threshold condition. </li>
</ul>


On the 20th July, Macquarie Asset Management launched a voluntary public Tender Offer to acquire full control of Gabia (079940 KS), and take it private.
Macquarie is offering ₩48,000/share, a 41.6% premium to undisturbed. Macquarie is targeting 9.8mn shares (73.1% of shares out) with a minimum of 3.3mn (24.3%). Management holding 24.37% are supportive.
Activist fund Align Partners holds ~14.29%. Miri Capital holds 24.2%. Neither are largely supportive, implying Macquarie requires ~71% of disinterested shareholders to tender to meet the minimum threshold condition. 


Gabia (079940 KS): Macquarie's Partial Offer Faces Material Shareholder Pushback

<ul>
<li>On 20 July, Macquarie Korea Opportunities Private Equity Fund No. 6, managed by Macquarie Asset Management announced that it is conducting a tender offer for Gabia Inc (079940 KS) shares. </li>
<li>The tender offer price is 48,000 won per share and the tender offer period lasts from 20 July to 17 September. Post tender offer, Macquarie plans to delist Gabia.</li>
<li>I believe this partial tender offer of Gabia by Macquarie could trigger a potential M&amp;A fight for the control of the company, leading to much higher share price.</li>
</ul>


On 20 July, Macquarie Korea Opportunities Private Equity Fund No. 6, managed by Macquarie Asset Management announced that it is conducting a tender offer for Gabia Inc (079940 KS) shares. 
The tender offer price is 48,000 won per share and the tender offer period lasts from 20 July to 17 September. Post tender offer, Macquarie plans to delist Gabia.
I believe this partial tender offer of Gabia by Macquarie could trigger a potential M&amp;A fight for the control of the company, leading to much higher share price.


A Partial Tender Offer of Gabia by Macquarie

<ul>
<li>In this insight, we review the major tender offers of Korean companies in 2025. Some of the major M&amp;A tender offers in 2025 include HMM, Kolon Mobility Group, and VIOL.</li>
<li>The tender offers have mostly been profitable for the investors in these targeted companies (especially those shareholders who owned these shares prior to the tender offer announcement).</li>
<li>What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week.</li>
</ul>


In this insight, we review the major tender offers of Korean companies in 2025. Some of the major M&amp;A tender offers in 2025 include HMM, Kolon Mobility Group, and VIOL.
The tender offers have mostly been profitable for the investors in these targeted companies (especially those shareholders who owned these shares prior to the tender offer announcement).
What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week.


A Review of Tender Offers in Korea in 2025

<ul>
<li>After the market close on 24 November, it was announced that Align Partners is conducting a partial tender offer of a 10% stake in Gabia Inc (079940 KS). </li>
<li>Tender offer price is 33,000 won (20% higher than current price). Tender offer amount is 44.7 billion won. </li>
<li>If Align Partners successfully completes this tender offer, its stake would rise to 19.03%. Plus, the combined stakes of Align Partners and Miri Capital would be 42.99%. </li>
</ul>


After the market close on 24 November, it was announced that Align Partners is conducting a partial tender offer of a 10% stake in Gabia Inc (079940 KS). 
Tender offer price is 33,000 won (20% higher than current price). Tender offer amount is 44.7 billion won. 
If Align Partners successfully completes this tender offer, its stake would rise to 19.03%. Plus, the combined stakes of Align Partners and Miri Capital would be 42.99%. 


A Tender Offer of 10% Stake in Gabia by Align Partners Asset Management

South Korea

Gabia Inc. provides Internet domain registration services.  The Company offers customer support and services such as Web hosting, domain registration and management, and Web agency.  Gabia also provides solution for Internet shopping mall and e-learning business.

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Gabia Inc (079940 KS)

A Tender Offer of Gabia by Macquarie Fails - Minority Shareholders Believe Its Value Is Much Higher

The tender offer of Gabia Inc (079940 KS) by Macquarie Asset Management has failed. Many minority shareholders believe that the intrinsic value of...

Douglas Kim

Gabia (079940 KS): Macquarie's Partial Offer Faces Material Shareholder Pushback

Trading at a 1.4%/10.2% gross/annualised spread, inclusive of the 0.35% tendering fee. If illiquid arbs are your bag, and not it, I'd get exposure...

David Blennerhassett

A Partial Tender Offer of Gabia by Macquarie

I believe this partial tender offer of Gabia by Macquarie could trigger a potential M&A fight for the control of the company, leading to much...

Douglas Kim

A Review of Tender Offers in Korea in 2025

In this insight, we review the major tender offers of Korean companies in 2025. The share prices of these tender offers were up on average 14.9%...

Douglas Kim

A Tender Offer of 10% Stake in Gabia by Align Partners Asset Management

Align Partners is conducting a partial tender offer of a 10% stake in Gabia Inc (079940 KS). Tender offer price is 33,000 won (20% higher than...

Douglas Kim

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