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 tendering price is ₩8,750, roughly 7% higher than the last close. However, Affinity's commitment makes this event noteworthy.</li>
<li>Lock&amp;Lock requires Affinity to target 30%. To reach 95%, securing 25% is needed, much higher than SsangYong C&amp;E, indicating potential price volatility.</li>
<li>A second public offering is likely due to the widening gap between the ownership threshold and actual acquisition percentage in Lock&amp;Lock. This could impact prices significantly during the tendering period.</li>
</ul>


The tendering price is ₩8,750, roughly 7% higher than the last close. However, Affinity's commitment makes this event noteworthy.
Lock&amp;Lock requires Affinity to target 30%. To reach 95%, securing 25% is needed, much higher than SsangYong C&amp;E, indicating potential price volatility.
A second public offering is likely due to the widening gap between the ownership threshold and actual acquisition percentage in Lock&amp;Lock. This could impact prices significantly during the tendering period.


Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>On 17 April, Affinity Equity Partners offered a tender offer of a 30% stake in Lock &amp; Lock at 8,750 won per share.</li>
<li>The tender offer period is from 18 April to 14 May.  The number of shares that are included in this tender offer is 13.14 million shares (30.33% of outstanding shares).  </li>
<li>Lock &amp; Lock's share price could trade higher close to the tender offer price of 8,750 won as the date as the end of the tender offer period approaches.</li>
</ul>


On 17 April, Affinity Equity Partners offered a tender offer of a 30% stake in Lock &amp; Lock at 8,750 won per share.
The tender offer period is from 18 April to 14 May.  The number of shares that are included in this tender offer is 13.14 million shares (30.33% of outstanding shares).  
Lock &amp; Lock's share price could trade higher close to the tender offer price of 8,750 won as the date as the end of the tender offer period approaches.


Lock & Lock: Affinity Equity Partners Offers a Tender Offer of a 30% Stake at 8,750 Won Per Share

<ul>
<li>After the market close today, Lock&amp;Lock announced that it will pay out dividends per share of 1,653 won worth 83 billion won, representing 25% of the company's market cap.</li>
<li>The shareholders date of record that could receive the dividends is as of 30 September 2022.</li>
<li>Although the high dividend payment should benefit the existing shareholders, we are not sure on the company's ability to continue to maintain high dividend payout ratio.</li>
</ul>


After the market close today, Lock&amp;Lock announced that it will pay out dividends per share of 1,653 won worth 83 billion won, representing 25% of the company's market cap.
The shareholders date of record that could receive the dividends is as of 30 September 2022.
Although the high dividend payment should benefit the existing shareholders, we are not sure on the company's ability to continue to maintain high dividend payout ratio.


Lock & Lock - Announces Dividends Worth 25% of Market Cap

<ul>
<li>Korea FSC will accept financial institutions' LOC and LPs' investment performance agreements as certifying documents for securing funds. This revision will be effective right from April 1 this year.</li>
<li>The impact from a preemptive trading perspective is likely to be significant. Additional stake purchases through tender offers will increase more aggressively, particularly when purchasing shares from the majority shareholder.</li>
<li>We should first pay attention to companies where private equity (PE) is the largest shareholder whose stake is relatively low (less than 50%): Hugel, Hana Tour Service, &amp; Hanssem</li>
</ul>


Korea FSC will accept financial institutions' LOC and LPs' investment performance agreements as certifying documents for securing funds. This revision will be effective right from April 1 this year.
The impact from a preemptive trading perspective is likely to be significant. Additional stake purchases through tender offers will increase more aggressively, particularly when purchasing shares from the majority shareholder.
We should first pay attention to companies where private equity (PE) is the largest shareholder whose stake is relatively low (less than 50%): Hugel, Hana Tour Service, &amp; Hanssem


Korea FSC Officially Eases a Major Hurdle for a Tender Offer: Names to Watch

<ul>
<li>More than 20 trillion won (US$16 billion) worth of deals are up for M&amp;As in 2023.</li>
<li>However, due to high interest rates and differences on valuations among buyers and sellers, the M&amp;A market in Korea is likely to continue to be weak in 2023.</li>
<li>In this insight, we discuss 24 companies that are up for M&amp;As this year in Korea, including Hanon Systems, SK Shieldus, and K Car.</li>
</ul>


More than 20 trillion won (US$16 billion) worth of deals are up for M&amp;As in 2023.
However, due to high interest rates and differences on valuations among buyers and sellers, the M&amp;A market in Korea is likely to continue to be weak in 2023.
In this insight, we discuss 24 companies that are up for M&amp;As this year in Korea, including Hanon Systems, SK Shieldus, and K Car.


Korea M&A Outlook in 2023: What's for Sale?

South Korea

LOCK&LOCK CO., LTD. produces and sells plastic food storage and outdoor airtight containers.  The Company also produces various materials such as ceramic ware, pot, glass, and other kitchen stuffs.

Lock&Lock (115390 KS)

Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case

This post delves into the trading perspectives of the Lock&Lock tender offer, highlighting its differences from the recent Ssangyong C&E case.

Sanghyun Park

Lock & Lock - Announces Dividends Worth 25% of Market Cap

After the market close today, Lock&Lock announced that it will pay out dividends per share of 1,653 won worth 83 billion won, representing 25% of...

Douglas Kim

Korea FSC Officially Eases a Major Hurdle for a Tender Offer: Names to Watch

This post summarizes Korea FSC's official statement about easing the funding capacity requirement for a tender offer and provides the names which...

Sanghyun Park

Korea M&A Outlook in 2023: What's for Sale?

In this insight, we discuss 24 companies that are up for M&As this year in Korea, including Hanon Systems, SK Shieldus, and K Car.

Douglas Kim

Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case

This post delves into the trading perspectives of the Lock&Lock tender offer, highlighting its differences from the recent Ssangyong C&E case.

Sanghyun Park

Lock & Lock: Affinity Equity Partners Offers a Tender Offer of a 30% Stake at 8,750 Won Per Share

On 17 April, Affinity Equity Partners offered a tender offer of a 30% stake in Lock & Lock at 8,750 won per share. The tender offer period is from...

Douglas Kim

Lock & Lock - Announces Dividends Worth 25% of Market Cap

After the market close today, Lock&Lock announced that it will pay out dividends per share of 1,653 won worth 83 billion won, representing 25% of...

Douglas Kim

Korea FSC Officially Eases a Major Hurdle for a Tender Offer: Names to Watch

This post summarizes Korea FSC's official statement about easing the funding capacity requirement for a tender offer and provides the names which...

Sanghyun Park

Korea M&A Outlook in 2023: What's for Sale?

In this insight, we discuss 24 companies that are up for M&As this year in Korea, including Hanon Systems, SK Shieldus, and K Car.

Douglas Kim