Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>SK D&amp;D announced the results of the delisting tender offer by Hahn &amp; Co. SK &amp;D mentioned that the subscription reached only 40% of the planned tender offer amount.</li>
<li>Post failed tender offer for SK D&amp;D by Hahn &amp; Co, we expect this to have a positive impact on SK D&amp;D's share price.</li>
<li>The major reason for this is that there are still many investors that believe that SK D&amp;D's shares are significantly undervalued at P/B of only 0.4x.</li>
</ul>


SK D&amp;D announced the results of the delisting tender offer by Hahn &amp; Co. SK &amp;D mentioned that the subscription reached only 40% of the planned tender offer amount.
Post failed tender offer for SK D&amp;D by Hahn &amp; Co, we expect this to have a positive impact on SK D&amp;D's share price.
The major reason for this is that there are still many investors that believe that SK D&amp;D's shares are significantly undervalued at P/B of only 0.4x.


SK D&D: Delisting Tender Offer by Hahn & Co Fails - What's Next?

<ul>
<li>On 1 October, it was reported in the local media that Hahn &amp; Co (is acquiring the management rights of SK D&amp;D Co Ltd (210980 KS). </li>
<li>This tender offer is not likely to be successful. Less than 1/3 of the 6.96 million shares that are up for tender offer could be sold by the existing shareholders.</li>
<li>We believe that the majority of the remaining investors in SK D&amp;D want higher tender offer price.</li>
</ul>


On 1 October, it was reported in the local media that Hahn &amp; Co (is acquiring the management rights of SK D&amp;D Co Ltd (210980 KS). 
This tender offer is not likely to be successful. Less than 1/3 of the 6.96 million shares that are up for tender offer could be sold by the existing shareholders.
We believe that the majority of the remaining investors in SK D&amp;D want higher tender offer price.


Acquisition of SK D&D by Hahn & Co + Tender Offer and Delisting Plans

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>Hahn &amp; Co. to buy SK Discovery’s 31.3% stake, launch ₩12,750/share tender for 37.4% float (₩88.8B), fully debt-financed, Oct 1–29.</li>
<li>SK D&amp;D likely gaps to offer price at open; 95% triggers delisting, but bidder must hit ~85%—tender size is heavy, so success isn’t guaranteed.</li>
<li>Setup for possible 2nd-round tender; current offer one-third of FY25 BPS, minorities unlikely to bite—trade is positioning for a potential price bump.</li>
</ul>


Hahn &amp; Co. to buy SK Discovery’s 31.3% stake, launch ₩12,750/share tender for 37.4% float (₩88.8B), fully debt-financed, Oct 1–29.
SK D&amp;D likely gaps to offer price at open; 95% triggers delisting, but bidder must hit ~85%—tender size is heavy, so success isn’t guaranteed.
Setup for possible 2nd-round tender; current offer one-third of FY25 BPS, minorities unlikely to bite—trade is positioning for a potential price bump.


SK D&D Tender to Be Announced Pre-Market This Morning – Assessing the Trading Angle

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August. Only 4 trading days to go.</li>
<li>We see 7 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 12 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.</li>
<li>The upward migrations have underperformed the downward migrations over the last month as a few stocks have sold off hard. Some despite being included in global indices.</li>
</ul>


The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August. Only 4 trading days to go.
We see 7 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 12 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.
The upward migrations have underperformed the downward migrations over the last month as a few stocks have sold off hard. Some despite being included in global indices.


KOSPI Size Indices: Momentum Stalls; (Some) Upward Migrations Sell-Off

<ul>
<li>The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.</li>
<li>We see 8 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 11 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.</li>
<li>There are a few stocks that are expected to have passive flows from global and local index trackers over the next few months and that will add to the impact.</li>
</ul>


The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.
We see 8 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 11 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.
There are a few stocks that are expected to have passive flows from global and local index trackers over the next few months and that will add to the impact.


KOSPI Size Indices: Outperformance Slows on Momentum Stalls

South Korea

SK D&D Co., Ltd. engages in real estate development.  The Company is primarily engaged in non-residential property development and renewable energy development.

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SK D&D Co Ltd (210980 KS)

SK D&D: Delisting Tender Offer by Hahn & Co Fails - What's Next?

On 2 November, it was reported that Hahn & Co is launching a second tender offer for shares of SK D&D. Hahn & Co will be conducting a second tender...

Douglas Kim

Acquisition of SK D&D by Hahn & Co + Tender Offer and Delisting Plans

This tender offer of SK D&D is not likely to be successful. Less than 1/3 of the 6.96 million shares that are up for tender offer could be sold by...

Douglas Kim

SK D&D Tender to Be Announced Pre-Market This Morning – Assessing the Trading Angle

This post details SK D&D tender hitting pre-market this morning (by Hahn & Co) and takes a closer look at the trade setup.

Sanghyun Park

KOSPI Size Indices: Momentum Stalls; (Some) Upward Migrations Sell-Off

There could be 41 changes to the KOSPI Size Indices in September. The upward migrations have underperformed the downward migrations over the last...

Brian Freitas

KOSPI Size Indices: Outperformance Slows on Momentum Stalls

There could be 41 stocks migrating between size segments in September. The upward migrations have outperformed the downward migrations but the...

Brian Freitas

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