Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>At the close of its reloaded ₩6,700/Share Tender Offer for <a href="https://www.smartkarma.com/entities/golfzon-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:16376:1" rel="noopener">Golfzon Holdings (121440 KS)</a>, SJ Investment received zero shares. With no margin seller at ₩6,700, it seemed illogical to reload.  </li>
<li>And for now, they won't, opting not to proceed with a follow-on delisting transaction.</li>
<li>₩6,700/Share was low-balled. It's probably worth (at least) double this. If you have the bandwidth to wait this out, stay in. Or buy and hold. Load up on weakness.</li>
</ul>


At the close of its reloaded ₩6,700/Share Tender Offer for Golfzon Holdings (121440 KS), SJ Investment received zero shares. With no margin seller at ₩6,700, it seemed illogical to reload.  
And for now, they won't, opting not to proceed with a follow-on delisting transaction.
₩6,700/Share was low-balled. It's probably worth (at least) double this. If you have the bandwidth to wait this out, stay in. Or buy and hold. Load up on weakness.


Golfzon Holdings (121440 KS): This Is A Buy And Hold

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Aug 28th. The aggregated short interest was USD19.4bn.</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 KEPCO E&amp;C, Silicon2, HyundaiEng&amp;Const, Hyundai Motor, Doosan Enerbility.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Aug 28th. The aggregated short interest was USD19.4bn.
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 KEPCO E&amp;C, Silicon2, HyundaiEng&amp;Const, Hyundai Motor, Doosan Enerbility.


KRX Short Interest Weekly (Aug 28th): KEPCO E&C, Silicon2, HyundaiEng&Const, Hyundai Motor

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Aug 21st. The aggregated short interest was USD18.6bn.</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 LG Electronics, Samsung Elec (PREF), Samsung Electronics, SAMSUNG BIOLOGICS, Hanmi Semi.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Aug 21st. The aggregated short interest was USD18.6bn.
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 LG Electronics, Samsung Elec (PREF), Samsung Electronics, SAMSUNG BIOLOGICS, Hanmi Semi.


KRX Short Interest Weekly (Aug 21st): LG Electronics, Samsung Elec (PREF), Samsung Electronics

<ul>
<li>Back on the 29th June, <a href="https://www.smartkarma.com/entities/golfzon-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:16376:1" rel="noopener">Golfzon Holdings (121440 KS)</a>'s largest shareholder Kim Won-il (via SJ Investments) launched a tender offer for the remaining 36.15% of Golfzon not owned, at ₩6,700/share.</li>
<li>At 0.35x P/B, it was an egregiously low-balled bid. Kim secured 62.9% of the target volume in the tender offer, increasing his stake to 76.85% from 55.36% (85.2% excluding treasuries).</li>
<li>Undeterred, Kim has reloaded. At the same ₩6,700/share Offer Price. Trading almost at terms. This Tender closes on the 2nd September. Do not tender. Hold off for a bump. </li>
</ul>


Back on the 29th June, Golfzon Holdings (121440 KS)'s largest shareholder Kim Won-il (via SJ Investments) launched a tender offer for the remaining 36.15% of Golfzon not owned, at ₩6,700/share.
At 0.35x P/B, it was an egregiously low-balled bid. Kim secured 62.9% of the target volume in the tender offer, increasing his stake to 76.85% from 55.36% (85.2% excluding treasuries).
Undeterred, Kim has reloaded. At the same ₩6,700/share Offer Price. Trading almost at terms. This Tender closes on the 2nd September. Do not tender. Hold off for a bump. 


Golfzon Holdings (121440 KS): More Egregiousness As SJ Investment Reloads

<ul>
<li>On the 29th June, <a href="https://www.smartkarma.com/entities/golfzon-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:16376:1" rel="noopener">Golfzon Holdings (121440 KS)</a>'s largest shareholder Kim Won-il launched a tender offer for the remaining 36.15% of Golfzon he doesn't own, at ₩6,700/share, a 57.55% premium.</li>
<li>At 0.35x P/B, where "B" primarily comprises an entity holding golf courses, currently mid-sale, there is evident (&amp; unsurprising) pushback, including from activist Terton, holding an estimated 3%. </li>
<li>The Offer closed yesterday (5th August) with management unflinchingly supporting terms, backed up by a derisory evaluation opinion. 95% squeeze-out appears tenuous. So now what?</li>
</ul>


On the 29th June, Golfzon Holdings (121440 KS)'s largest shareholder Kim Won-il launched a tender offer for the remaining 36.15% of Golfzon he doesn't own, at ₩6,700/share, a 57.55% premium.
At 0.35x P/B, where "B" primarily comprises an entity holding golf courses, currently mid-sale, there is evident (&amp; unsurprising) pushback, including from activist Terton, holding an estimated 3%. 
The Offer closed yesterday (5th August) with management unflinchingly supporting terms, backed up by a derisory evaluation opinion. 95% squeeze-out appears tenuous. So now what?


Golfzon Holdings (121440 KS): Egregious MBO Closes. This Is Not Over

South Korea

GOLFZON Co., Ltd manufactures and sells screen golf simulators. The Company develops software application as well as the hardware used in these screen golf simulators.

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GOLFZON (215000 KS)

Golfzon Holdings (121440 KS): This Is A Buy And Hold

This remains a materially deep-value play, that will/should eventually be played out. Hold on (or buy and hold out) for an improved exit. If you...

David Blennerhassett

KRX Short Interest Weekly (Aug 28th): KEPCO E&C, Silicon2, HyundaiEng&Const, Hyundai Motor

We analyzed KRX short interest report for the past week and highlighted short interest changes in KEPCO E&C, Silicon2, HyundaiEng&Const, Hyundai...

Ke Yan, CFA, FRM

KRX Short Interest Weekly (Aug 21st): LG Electronics, Samsung Elec (PREF), Samsung Electronics

We analyzed KRX short interest report for the past week and highlighted short interest changes in LG Electronics, Samsung Elec (PREF), Samsung...

Ke Yan, CFA, FRM

Golfzon Holdings (121440 KS): More Egregiousness As SJ Investment Reloads

This is a deep value name; potentially morphing into a deep value cash-rich play. Kim intends to cancel the treasuries, facilitating the 95%...

David Blennerhassett

Golfzon Holdings (121440 KS): Egregious MBO Closes. This Is Not Over

This whole delisting push is predicated on a large cash event occurring. Whether minorities can participate in this uplift depends on whether...

David Blennerhassett

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