Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/2301" target="_blank" data-smartkarma-citation="entities:2301:1">Jeil Pharma Holdings (002620 KS)</a>' swap price for the tender offer to the <a href="https://www.smartkarma.com/entities/27529" target="_blank" data-smartkarma-citation="entities:27529:1">Jeil Pharmaceutical (271980 KS)</a> shareholders is set at ₩23,950 based on the Oct 19~23 VWAP at a 0% discount. The current spread is at 12.76% at the Oct 23 closing prices of ₩23,400 for Holdings and ₩46,800 for Pharmaceutical.</li>
<li>This is a small company and retail shareholders account for more than 80% of daily trading. So, liquidity may be an issue to many arb traders. Not only that, the major shareholder has nearly enough shares to meet the target (7M).</li>
<li>But the market is now hearing an interesting development within the major shareholder. It seems that only about 70% of the target will be taken by the major shareholder. Then, an actual room for arb traders to sneak in is about 30% of the target, which of course is still risky proration wise but not terribly thin either.</li>
<li>So, this event is certainly worthy of our attention. It'd not be easy to borrow Holdings shares, but if you can, then I suggest making this arb trade while the spread remains juicy enough.</li>
</ul>



Jeil Pharma Holdings (002620 KS)' swap price for the tender offer to the Jeil Pharmaceutical (271980 KS) shareholders is set at ₩23,950 based on the Oct 19~23 VWAP at a 0% discount. The current spread is at 12.76% at the Oct 23 closing prices of ₩23,400 for Holdings and ₩46,800 for Pharmaceutical.
This is a small company and retail shareholders account for more than 80% of daily trading. So, liquidity may be an issue to many arb traders. Not only that, the major shareholder has nearly enough shares to meet the target (7M).
But the market is now hearing an interesting development within the major shareholder. It seems that only about 70% of the target will be taken by the major shareholder. Then, an actual room for arb traders to sneak in is about 30% of the target, which of course is still risky proration wise but not terribly thin either.
So, this event is certainly worthy of our attention. It'd not be easy to borrow Holdings shares, but if you can, then I suggest making this arb trade while the spread remains juicy enough.


Huge Spread Opening in Jeil Pharma Holdings Tender Event: Spread Is Now at +12%

<a href="https://www.smartkarma.com/entities/2301" target="_blank" data-smartkarma-citation="entities:2301:1">Jeil Pharma Holdings (002620 KS)</a> made it official that it will target a total 7,000,000 <a href="https://www.smartkarma.com/entities/27529" target="_blank" data-smartkarma-citation="entities:27529:1">Jeil Pharmaceutical (271980 KS)</a> shares (47.6% of total shares) at ₩53,874 in order to complete the holding company conversion.<a href="https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20181004000582" target="_blank">Here is the link of the regulatory filing about this</a>. (Source: DART)Below is my own summary of this tender event.

Jeil Pharma Holdings (002620 KS) made it official that it will target a total 7,000,000 Jeil Pharmaceutical (271980 KS) shares (47.6% of total shares) at ₩53,874 in order to complete the holding company conversion.Here is the link of the regulatory filing about this. (Source: DART)Below is my own summary of this tender event.

Jeil Pharma Holdings (002620)​: ₩377bil Tender Event Summary

South Korea

Jeil Pharmaceutical Co.,Ltd. develops and distributes pharmaceutical products. The Company produces solid pharmaceuticals, injections, finished drugs, and antibiotics for the treatment of oncology, urology, neuropsychiatry, and endocrinology. Jeil Pharmaceutical markets its products worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Jeil Pharmaceutical (271980 KS)

Huge Spread Opening in Jeil Pharma Holdings Tender Event: Spread Is Now at +12%

Jeil Pharma Holdings (002620 KS)' swap price for the tender offer to the Jeil Pharmaceutical (271980 KS) shareholders is set at ₩23,950 based on...

Sanghyun Park

Jeil Pharma Holdings (002620): ₩377bil Tender Event Summary

Jeil Pharma Holdings (002620 KS) made it official that it will target a total 7,000,000 Jeil Pharmaceutical (271980 KS) shares (47.6% of total...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Huge Spread Opening in Jeil Pharma Holdings Tender Event: Spread Is Now at +12%

Jeil Pharma Holdings (002620 KS)' swap price for the tender offer to the Jeil Pharmaceutical (271980 KS) shareholders is set at ₩23,950 based on...

Sanghyun Park

Jeil Pharma Holdings (002620)​: ₩377bil Tender Event Summary

Jeil Pharma Holdings (002620 KS) made it official that it will target a total 7,000,000 Jeil Pharmaceutical (271980 KS) shares (47.6% of total...

Sanghyun Park

Jeil Pharma Holdings (002620): ₩377bil Tender Event Summary