Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<ul>
<li>As a result of the likely implementation of the changes to the block deal pre-disclosure rules in Korea, numerous block deal sales are likely in the next 2-3 months.</li>
<li>Block deal sales worth 50 billion won or more totaled 5.2 trillion won in 2022. As of 17 July 2023, it was 1.1 trillion won.</li>
<li>We provide shareholding structures of the top 20 stocks in KOSDAQ and a few companies in this list could announce block deal sales in 2H 2023. </li>
</ul>


As a result of the likely implementation of the changes to the block deal pre-disclosure rules in Korea, numerous block deal sales are likely in the next 2-3 months.
Block deal sales worth 50 billion won or more totaled 5.2 trillion won in 2022. As of 17 July 2023, it was 1.1 trillion won.
We provide shareholding structures of the top 20 stocks in KOSDAQ and a few companies in this list could announce block deal sales in 2H 2023. 


Block Deals Pre-Disclosure Rule Changes in Korea Likely to Be Implemented Around October 2023

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On 9 June, skin and cosmetic treatment play <a href="https://www.smartkarma.com/entities/lutronic-corp" target="_blank" data-smartkarma-citation="entities:2250:1" rel="noopener">Lutronic Corp (085370 KS)</a> announced a Tender Offer from Korean PE outfit Hahn &amp; Company.</li>
<li>After acquiring 19.41% from Lutronic's CEO at ₩ 36,700, Hahn will launch an Offer for all remaining shares at the same price. </li>
<li>This Offer Price is a lifetime high. There is no minimum tendering condition. </li>
</ul>


On 9 June, skin and cosmetic treatment play Lutronic Corp (085370 KS) announced a Tender Offer from Korean PE outfit Hahn &amp; Company.
After acquiring 19.41% from Lutronic's CEO at ₩ 36,700, Hahn will launch an Offer for all remaining shares at the same price. 
This Offer Price is a lifetime high. There is no minimum tendering condition. 


Lutronic (085370 KS): Hahn & Co Tender Offer

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>Retail investors hold the majority of shares at 60%, and they may be interested in participating in the second tender offer based on their accumulated learning effect.</li>
<li>Based on the observed behavior of Hahn &amp; Co, it's unlikely that they will walk away from the delisting plan.</li>
<li>We need to consider going long on the potential upward adjustment of the second tendering price. This play can be viewed as a call option with a floor at ₩36,700.</li>
</ul>


Retail investors hold the majority of shares at 60%, and they may be interested in participating in the second tender offer based on their accumulated learning effect.
Based on the observed behavior of Hahn &amp; Co, it's unlikely that they will walk away from the delisting plan.
We need to consider going long on the potential upward adjustment of the second tendering price. This play can be viewed as a call option with a floor at ₩36,700.


Trading Plays for the Unexpected Tender Offer to Lutronic Corp Shareholders

<ul>
<li>In this insight, we provide the details of Medtronic's M&amp;A and tender offer for Eoflow. </li>
<li>Currently, Eoflow is trading at 28,050 won which is 6.5% lower than the tender offer price of 30,000 won.</li>
<li>Eoflow's share price is currently comfortably below 30,000 won and we believe this deal has 95-98%+ probability of getting completed within the current M&amp;A framework.</li>
</ul>


In this insight, we provide the details of Medtronic's M&amp;A and tender offer for Eoflow. 
Currently, Eoflow is trading at 28,050 won which is 6.5% lower than the tender offer price of 30,000 won.
Eoflow's share price is currently comfortably below 30,000 won and we believe this deal has 95-98%+ probability of getting completed within the current M&amp;A framework.


Medtronic's M&A, Tender Offer, and Taking Private of Eoflow

<ul>
<li>There are 44 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>Three new deal was discussed on Smartkarma this past week: <a href="https://www.smartkarma.com/entities/albemarle-corp" target="_blank" data-smartkarma-citation="entities:7678:1" rel="noopener">Albemarle (ALB US)</a>'s <a href="https://www.smartkarma.com/entities/liontown-resources-ltd" target="_blank" data-smartkarma-citation="entities:20488:1" rel="noopener">Liontown Resources (LTR AU)</a> tilt; Malteries Soufflet's <a href="https://www.smartkarma.com/entities/united-malt-group-ltd" target="_blank" data-smartkarma-citation="entities:29116:1" rel="noopener">United Malt (UMG AU)</a> Offer; Bain Capital's <a href="https://www.smartkarma.com/entities/estia-health-ltd" target="_blank" data-smartkarma-citation="entities:77:1" rel="noopener">Estia (EHE AU)</a> Offer. </li>
<li>Key updates took place for <a href="https://www.smartkarma.com/entities/aag-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:501:1" rel="noopener">Aag Energy Holdings (2686 HK)</a>, <a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a>, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, and<a href="https://www.smartkarma.com/entities/united-fiber-system-ltd" target="_blank" data-smartkarma-citation="entities:20826:1" rel="noopener">Golden Energy &amp; Resources (GER SP)</a>.</li>
</ul>


There are 44 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deal was discussed on Smartkarma this past week: Albemarle (ALB US)'s Liontown Resources (LTR AU) tilt; Malteries Soufflet's United Malt (UMG AU) Offer; Bain Capital's Estia (EHE AU) Offer. 
Key updates took place for Aag Energy Holdings (2686 HK), Toyo Construction (1890 JP), Toshiba Corp (6502 JP), andGolden Energy &amp; Resources (GER SP).


(Mostly) Asia-Pac Weekly Risk Arb Wrap: Liontown, United Malt, Estia, Mincor, Origin, Toyo, Toshiba

South Korea

Osstem Implant Co., Ltd. manufactures dental implant system. The Company also markets dental management software. Osstem Implant provides products for dental surgery and exports abroad.

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Osstem Implant (048260 KS)

Block Deals Pre-Disclosure Rule Changes in Korea Likely to Be Implemented Around October 2023

As a result of the likely implementation of the changes to the block deal pre-disclosure rules in Korea, numerous block deal sales are likely in...

Douglas Kim

Lutronic (085370 KS): Hahn & Co Tender Offer

Buy the deal at the price where it makes sense. The current gross/annualised is ~1%/10.5%. If you are a LO investor still holding, and you are...

David Blennerhassett

Trading Plays for the Unexpected Tender Offer to Lutronic Corp Shareholders

This post examines potential trading plays for the unexpected tendering offer to the Lutronic Corp shareholders announced this morning by Hahn & Co.

Sanghyun Park

Medtronic's M&A, Tender Offer, and Taking Private of Eoflow

Eoflow's share price is currently comfortably below 30,000 won and we believe this deal has 95-98%+ probability of getting completed within the...

Douglas Kim

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Liontown, United Malt, Estia, Mincor, Origin, Toyo, Toshiba

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

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