Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 15 May, it was reported in the local media that Affinity Equity Partners (AEP) is expected to launch a second tender offer for Lock &amp; Lock (115390 KS).</li>
<li>The tender offer price in this second tender offer is 8,750 won (same as the first tender offer). The second tender offer will last from 16 May to 5 June.</li>
<li>In the first tender offer, only about half of the target was reached. There was a strong backlash from investors due to low tender offer price.</li>
</ul>


On 15 May, it was reported in the local media that Affinity Equity Partners (AEP) is expected to launch a second tender offer for Lock &amp; Lock (115390 KS).
The tender offer price in this second tender offer is 8,750 won (same as the first tender offer). The second tender offer will last from 16 May to 5 June.
In the first tender offer, only about half of the target was reached. There was a strong backlash from investors due to low tender offer price.


Lock & Lock: Second Tender Offer by Affinity Equity Partners

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.

<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

<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>MBK Partners will launch a tender offer for ConnectWave from today to May 24th. The target volume is 16.6M shares (40% of SO) at ₩18,000 per share, a 15.6% premium.</li>
<li>MBK commits to acquiring all tendered shares, regardless of subscription rates, in order to expedite the delisting process. So, there is no cancellation or allocation risk.</li>
<li>ConnectWave's retail investor base, with high entry prices, may hinder reaching 70% of the target volume. Absence of risks suggests considering buy positions for potential secondary tender offer.</li>
</ul>


MBK Partners will launch a tender offer for ConnectWave from today to May 24th. The target volume is 16.6M shares (40% of SO) at ₩18,000 per share, a 15.6% premium.
MBK commits to acquiring all tendered shares, regardless of subscription rates, in order to expedite the delisting process. So, there is no cancellation or allocation risk.
ConnectWave's retail investor base, with high entry prices, may hinder reaching 70% of the target volume. Absence of risks suggests considering buy positions for potential secondary tender offer.


MBK's ConnectWave Tender Offer: Details & Trading Angles

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.

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Lock&Lock (115390 KS)

Lock & Lock: Second Tender Offer by Affinity Equity Partners

On 15 May, it was reported in the local media that Affinity Equity Partners (AEP) is expected to launch a second tender offer for Lock & Lock...

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 - 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

MBK's ConnectWave Tender Offer: Details & Trading Angles

This post outlines MBK Partners' tender offer for ConnectWave shareholders at a 15% premium and explores potential trading angles.

Sanghyun Park

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52-week Range

Market Cap (USDm)

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Lock & Lock: Second Tender Offer by Affinity Equity Partners

On 15 May, it was reported in the local media that Affinity Equity Partners (AEP) is expected to launch a second tender offer for Lock & Lock...

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

MBK's ConnectWave Tender Offer: Details & Trading Angles

This post outlines MBK Partners' tender offer for ConnectWave shareholders at a 15% premium and explores potential trading angles.

Sanghyun Park