Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>The EGM for Korea Zinc (010130 KS) is expected to be held on 23 January 2025. Accordingly, the shareholder registry is expected to be closed around 19 - 23 December. </li>
<li>By better analyzing the timeline of the M&amp;A of SM Entertainment, we may be able to get better clues to Korea Zinc's price movement in the next several weeks. </li>
<li>Notice the double top share price formation of SM Entertainment in 2023 versus the potential double top formation of Korea Zinc in 2024. These trading formations look eerily similar.</li>
</ul>


The EGM for Korea Zinc (010130 KS) is expected to be held on 23 January 2025. Accordingly, the shareholder registry is expected to be closed around 19 - 23 December. 
By better analyzing the timeline of the M&amp;A of SM Entertainment, we may be able to get better clues to Korea Zinc's price movement in the next several weeks. 
Notice the double top share price formation of SM Entertainment in 2023 versus the potential double top formation of Korea Zinc in 2024. These trading formations look eerily similar.


A Comparison of Korea Zinc's M&A in 2024 Vs SM Entertainment's M&A in 2023 in the 9th Inning

<ul>
<li>On 18 October, a local activist fund Align Partners Asset Management started its "corporate activism" on Doosan Bobcat Inc (241560 KS).</li>
<li>Align Partners sent a shareholder proposal letter requesting a significant increase in the shareholder return rate, including dividends and selling off non-core assets. </li>
<li>We believe that Align Partners' corporate activism on Doosan Bobcat is likely to have a positive impact on Doosan Bobcat's share price.</li>
</ul>


On 18 October, a local activist fund Align Partners Asset Management started its "corporate activism" on Doosan Bobcat Inc (241560 KS).
Align Partners sent a shareholder proposal letter requesting a significant increase in the shareholder return rate, including dividends and selling off non-core assets. 
We believe that Align Partners' corporate activism on Doosan Bobcat is likely to have a positive impact on Doosan Bobcat's share price.


Align Partners Goes Activist on Doosan Bobcat

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>If NPS and passive funds each tender half, it could hit 24%, pushing investors to consider both sides. The market’s eyeing a ratio of about MBK 3 to Choi 7.</li>
<li>This tight vote could drag out the event longer than expected, and MBK might scoop up more shares if they miss their minimum target.</li>
<li>MBK will likely go for open market buys against Korea Zinc’s buyback. Consider tendering to MBK Monday and spread trading futures, or push Korea Zinc to raise their buyback offer.</li>
</ul>


If NPS and passive funds each tender half, it could hit 24%, pushing investors to consider both sides. The market’s eyeing a ratio of about MBK 3 to Choi 7.
This tight vote could drag out the event longer than expected, and MBK might scoop up more shares if they miss their minimum target.
MBK will likely go for open market buys against Korea Zinc’s buyback. Consider tendering to MBK Monday and spread trading futures, or push Korea Zinc to raise their buyback offer.


Korea Zinc: Latest Stockholder Record for Proration Risk

<ul>
<li>It’s unclear if this will turn into a tender offer battle like Korea Zinc, and we need to assess both sides’ financial strength carefully.</li>
<li>Today’s reports suggest Sono has more financial flexibility than T'way Holdings, but we should be cautious. T'way Air might also consider buying back shares with borrowed funds.</li>
<li>T'way Air has fewer institutional investors and more available float than Korea Zinc, suggesting significant price swings and an attractive trading setup, as seen in today’s volume spike.</li>
</ul>


It’s unclear if this will turn into a tender offer battle like Korea Zinc, and we need to assess both sides’ financial strength carefully.
Today’s reports suggest Sono has more financial flexibility than T'way Holdings, but we should be cautious. T'way Air might also consider buying back shares with borrowed funds.
T'way Air has fewer institutional investors and more available float than Korea Zinc, suggesting significant price swings and an attractive trading setup, as seen in today’s volume spike.


Digging into Today’s Potential T'way Air Tender Offer Saga

<ul>
<li>Since Choi and his affiliates can’t buy shares directly, his only play is to recruit more white knights to boost his stake.</li>
<li>He needs at least 6% from the 23% free float, costing over ₩800 billion. This hefty price tag is why the stock hasn't moved much from the tender offer price.</li>
<li>The market isn’t ruling out Hyundai getting aggressive to secure Korea Zinc’s nickel, making this a hot trading point during the tender offer.</li>
</ul>


Since Choi and his affiliates can’t buy shares directly, his only play is to recruit more white knights to boost his stake.
He needs at least 6% from the 23% free float, costing over ₩800 billion. This hefty price tag is why the stock hasn't moved much from the tender offer price.
The market isn’t ruling out Hyundai getting aggressive to secure Korea Zinc’s nickel, making this a hot trading point during the tender offer.


Clearing up Legal Confusion on Counter Offers and Getting a Clear Read on the Korea Zinc Tender

South Korea

S.M.Entertainment Co. plans, produces, promotes, and markets Korean rock and roll music in several formats, such as compact discs (CD), concert tours, television productions, and music videos.  The Company also operates artist management business as well as licensing and copyright business from the company's music records.

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

S.M.Entertainment Co (041510 KS)

A Comparison of Korea Zinc's M&A in 2024 Vs SM Entertainment's M&A in 2023 in the 9th Inning

December 18th is the last day to secure voting rights for Korea Zinc. MBK claims intrinsic value of Korea Zinc is 14 trillion won (680,000 won per...

Douglas Kim

Align Partners Goes Activist on Doosan Bobcat

On 18 October, a local activist fund Align Partners Asset Management started its "corporate activism" on Doosan Bobcat Inc (241560 KS).

Douglas Kim

Korea Zinc: Latest Stockholder Record for Proration Risk

This post pulls together the latest intel and data on Korea Zinc's shareholder list to assess proration risk right before the big finale of MBK's...

Sanghyun Park

Digging into Today’s Potential T'way Air Tender Offer Saga

This post dives into today’s potential T'way Air tender offer saga, unpacking the local media reports that circulated in the market throughout the...

Sanghyun Park

Clearing up Legal Confusion on Counter Offers and Getting a Clear Read on the Korea Zinc Tender

This post clarifies legal misunderstandings about counter offers in the Korea Zinc tender and a precise understanding of the current situation.

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)