Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>The local market anxiously awaits the family's ability to pay by early May. Failure could prompt the Tax Service to sell their pledged stocks, including Hanmi Science shares.</li>
<li>Preventing Tax Service from selling Hanmi Science shares requires additional collateral, unlikely due to existing pledges. Rumor suggests mother and daughter may sell shares before May, followed by Tax Service.</li>
<li>Given negotiation uncertainty with KKR, it's crucial to prepare for potential failure rather than solely relying on success, necessitating a pragmatic approach.</li>
</ul>


The local market anxiously awaits the family's ability to pay by early May. Failure could prompt the Tax Service to sell their pledged stocks, including Hanmi Science shares.
Preventing Tax Service from selling Hanmi Science shares requires additional collateral, unlikely due to existing pledges. Rumor suggests mother and daughter may sell shares before May, followed by Tax Service.
Given negotiation uncertainty with KKR, it's crucial to prepare for potential failure rather than solely relying on success, necessitating a pragmatic approach.


Imminent Block Deals Involving Hanmi Science Shares Due to Inheritance Tax Payments

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>The 2024 AGM of Hanmi Science is over and the two Lim brothers have control of the company. Nonetheless, the fight for the control of Hanmi Science is not over.</li>
<li>There is an increasingly probable scenario where the KKR private equity firm gets involved, joining hands with the Lim brothers.</li>
<li>If mum and sister do not sell their shares (which seems to be the higher likely scenario), then KKR may issue a tender offer to the remaining minority shareholders.</li>
</ul>


The 2024 AGM of Hanmi Science is over and the two Lim brothers have control of the company. Nonetheless, the fight for the control of Hanmi Science is not over.
There is an increasingly probable scenario where the KKR private equity firm gets involved, joining hands with the Lim brothers.
If mum and sister do not sell their shares (which seems to be the higher likely scenario), then KKR may issue a tender offer to the remaining minority shareholders.


Hanmi Science: If Talks With Mum and Sister Break Down, Then KKR May Provide a Partial Tender Offer

<ul>
<li>The victorious brothers plan to join forces with KKR to secure over 51% ownership of Hanmi Science. They aim to persuade the mother and daughter to part with their shares.</li>
<li>Should this negotiation fail, KKR is prepared to initiate a tender offer in the open market, intending to acquire an additional 10-15% of Hanmi Science's shares.</li>
<li>KKR can target a maximum of 16%. With 10-15% aimed for, this tender offer will cause significant price impact.</li>
</ul>


The victorious brothers plan to join forces with KKR to secure over 51% ownership of Hanmi Science. They aim to persuade the mother and daughter to part with their shares.
Should this negotiation fail, KKR is prepared to initiate a tender offer in the open market, intending to acquire an additional 10-15% of Hanmi Science's shares.
KKR can target a maximum of 16%. With 10-15% aimed for, this tender offer will cause significant price impact.


Backstory on the Hanmi Science Showdown & KKR's Likely Tender Offer

<ul>
<li>After the market close on 26 March, it was reported that NPS has decided it will side with Chairwoman Young-Sook Song (mother) and her daughter Ju-Hyun Lim. </li>
<li>As a result, Chairwoman Young-Sook Song (mother) and Ju-Hyun Lim have secured 40.86% of the shares, which is slightly higher than the ownership of her two sons (38.4%). </li>
<li>In the near term, this battle for the control of the company could have a positive impact on Hanmi Science's share price. </li>
</ul>


After the market close on 26 March, it was reported that NPS has decided it will side with Chairwoman Young-Sook Song (mother) and her daughter Ju-Hyun Lim. 
As a result, Chairwoman Young-Sook Song (mother) and Ju-Hyun Lim have secured 40.86% of the shares, which is slightly higher than the ownership of her two sons (38.4%). 
In the near term, this battle for the control of the company could have a positive impact on Hanmi Science's share price. 


Hanmi Science: NPS Sides With Mother (Chairwoman) And Daughter

<ul>
<li>After the market close on 12 January, OCI Holdings (010060 KS) announced that it plans to acquire a 27.03% stake in Hanmi Science (008930 KS) for 770 billion won. </li>
<li>Through this investment and integration between OCI Holdings and Hanmi Science, the OCI Group and Hanmi Pharmaceutical Group plans to establish a joint management system.</li>
<li><strong>This deal between OCI Holdings and Hanmi Science is not over and it could lead to an M&amp;A fight for the control of Hanmi Science by its family members. </strong></li>
</ul>


After the market close on 12 January, OCI Holdings (010060 KS) announced that it plans to acquire a 27.03% stake in Hanmi Science (008930 KS) for 770 billion won. 
Through this investment and integration between OCI Holdings and Hanmi Science, the OCI Group and Hanmi Pharmaceutical Group plans to establish a joint management system.
This deal between OCI Holdings and Hanmi Science is not over and it could lead to an M&amp;A fight for the control of Hanmi Science by its family members. 


OCI Holdings Plans to Acquire a 27% In Hanmi Science - To Spark a Family Feud?

South Korea

Hanmi Science Co., Ltd. produces pharmaceutical products, including antibiotics, vitamins, and intestinal tonics.  The Company also provides beverages and processes soft capsules for other pharmaceutical firms.

Hanmi Science (008930 KS)

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