Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months after treasury shares acquisition.</li>
<li>It would be nearly impossible for Korea Zinc to sell 2.4% of its treasury stock to an external friendly force and transform it into a friendly stake by February 2025.</li>
<li>Although MBK/Young Poong Alliance has the advantage right now in this M&amp;A battle for Korea Zinc, it is by no means over.</li>
</ul>


Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months after treasury shares acquisition.
It would be nearly impossible for Korea Zinc to sell 2.4% of its treasury stock to an external friendly force and transform it into a friendly stake by February 2025.
Although MBK/Young Poong Alliance has the advantage right now in this M&amp;A battle for Korea Zinc, it is by no means over.


Korea Zinc's 2.4% Treasury Shares - Devil Is In the Legal Loophole

<ul>
<li>We discuss the next steps in the fight for the control of Korea Zinc, after the completion of the tender offer by the MBK Partners and Young Poong alliance. </li>
<li>After the tender offer, MBK and Young Poong's stake in Korea Zinc increased from 33.13% to 38.47%, coming close to more than half of the voting rights.</li>
<li>We continue to believe that at current stage, MBK/Young Poong alliance has the advantage in the fight for the control of Korea Zinc. </li>
</ul>


We discuss the next steps in the fight for the control of Korea Zinc, after the completion of the tender offer by the MBK Partners and Young Poong alliance. 
After the tender offer, MBK and Young Poong's stake in Korea Zinc increased from 33.13% to 38.47%, coming close to more than half of the voting rights.
We continue to believe that at current stage, MBK/Young Poong alliance has the advantage in the fight for the control of Korea Zinc. 


Scenario Analysis of Korea Zinc's Share Buyback, Cancellation, and Tender Offer + NPS's Five Options

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

DZT Research

DZT 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 Oct 11th which has an aggregated short interest worth USD4.7bn.</li>
<li>We tabulate league table 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 Samsung Electronics, Sk Hynix, Posco, Shinhan Group.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Oct 11th which has an aggregated short interest worth USD4.7bn.
We tabulate league table 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 Samsung Electronics, Sk Hynix, Posco, Shinhan Group.


KRX Short Interest Weekly (Oct 11th): Samsung Electronics, Sk Hynix, Posco, Shinhan Group

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.

<ul>
<li>Since MBK's tender started, institutional trading has been light, leaving local retail investors in control. Choi’s 35% ceiling poses real proration risk for traders eyeing the action.</li>
<li>MBK might not have wanted YPP; they could just be using it as bait to not only drain Choi’s cash but also to put them in a tight financial spot.</li>
<li>MBK is set to focus on snapping up Korea Zinc shares in the open market to increase their stake and thwart any buyback tender offers.</li>
</ul>


Since MBK's tender started, institutional trading has been light, leaving local retail investors in control. Choi’s 35% ceiling poses real proration risk for traders eyeing the action.
MBK might not have wanted YPP; they could just be using it as bait to not only drain Choi’s cash but also to put them in a tight financial spot.
MBK is set to focus on snapping up Korea Zinc shares in the open market to increase their stake and thwart any buyback tender offers.


Let’s Get Real About the Odds of MBK Launching a New Tender for YPP

<ul>
<li>Korea Zinc raised the share buyback and tender offer price from 830,000 won to 890,000 won. Korea Zinc's share price closed up by only 0.6% today to 794,000 won. </li>
<li>As a result, the amount of capital involved in this share buyback and tender offer would increase from 2.7 trillion won to 3.2 trillion won.</li>
<li>Despite higher share buyback/tender offer of Korea Zinc by Choi family, we believe that this fight for the control of Korea Zinc is increasingly in favor of MBK/Jang family. </li>
</ul>


Korea Zinc raised the share buyback and tender offer price from 830,000 won to 890,000 won. Korea Zinc's share price closed up by only 0.6% today to 794,000 won. 
As a result, the amount of capital involved in this share buyback and tender offer would increase from 2.7 trillion won to 3.2 trillion won.
Despite higher share buyback/tender offer of Korea Zinc by Choi family, we believe that this fight for the control of Korea Zinc is increasingly in favor of MBK/Jang family. 


Korea Zinc Raises Share Buyback and Tender Offer Price to 890,000 Won

South Korea

Korea Zinc Co., Ltd. specializes in non-ferrous metal smelting industry.  The Company manufactures zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper.  Korea Zinc provides its products to domestic and overseas markets.

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

Korea Zinc (010130 KS)

Korea Zinc's 2.4% Treasury Shares - Devil Is In the Legal Loophole

Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months...

Douglas Kim

KRX Short Interest Weekly (Oct 11th): Samsung Electronics, Sk Hynix, Posco, Shinhan Group

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samsung Electronics, Sk Hynix, Posco, Shinhan Group.

Ke Yan, CFA, FRM

Let’s Get Real About the Odds of MBK Launching a New Tender for YPP

This post digs into the real odds of MBK launching a new tender for Young Poong Precision, given the current market dynamics.

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Korea Zinc's 2.4% Treasury Shares - Devil Is In the Legal Loophole

Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months...

Douglas Kim

Scenario Analysis of Korea Zinc's Share Buyback, Cancellation, and Tender Offer + NPS's Five Options

We discuss the next steps in the fight for the control of Korea Zinc, after the completion of the tender offer by the MBK Partners and Young Poong...

Douglas Kim

KRX Short Interest Weekly (Oct 11th): Samsung Electronics, Sk Hynix, Posco, Shinhan Group

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samsung Electronics, Sk Hynix, Posco, Shinhan Group.

Ke Yan, CFA, FRM

Let’s Get Real About the Odds of MBK Launching a New Tender for YPP

This post digs into the real odds of MBK launching a new tender for Young Poong Precision, given the current market dynamics.

Sanghyun Park

Korea Zinc Raises Share Buyback and Tender Offer Price to 890,000 Won

MBK acquired 5.34% additional shares of Korea Zinc through its tender offer. MBK alliance’s stake in Korea Zinc increased from 33.13% to 38.47%....

Douglas Kim