Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<p>In this insight, we discuss the stocks that could get included or excluded in the November 2021 KOSPI 200 rebalance. We highlight 15 stocks that could get included and 10 stocks that could get excluded in the upcoming KOSPI 200 rebalance.</p><div class="content-highlight">
<p>This rebalance of the KOSPI 200 strategy is a type of<strong> momentum-driven strategy.</strong> The 15 stocks that we think could get included in the next KOSPI 200 rebalance have generated strong share price performances <strong>(up 55% on average in the past six months</strong>). </p>
<p>On the other hand, the 10 stocks which we think could get excluded in the next KOSPI 200 rebalance (the bottom 5% of KOSPI 200 index in terms of market cap) have done much worse in terms of their share price performance (<strong>down 6.1% on average in the past six months</strong>). </p>
</div>

In this insight, we discuss the stocks that could get included or excluded in the November 2021 KOSPI 200 rebalance. We highlight 15 stocks that could get included and 10 stocks that could get excluded in the upcoming KOSPI 200 rebalance.
This rebalance of the KOSPI 200 strategy is a type of momentum-driven strategy. The 15 stocks that we think could get included in the next KOSPI 200 rebalance have generated strong share price performances (up 55% on average in the past six months). 
On the other hand, the 10 stocks which we think could get excluded in the next KOSPI 200 rebalance (the bottom 5% of KOSPI 200 index in terms of market cap) have done much worse in terms of their share price performance (down 6.1% on average in the past six months). 


Potential Changes of KOSPI 200 Index Components in the November 2021 Rebalance

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.

<p>SK Discovery is a pure holding company and consists of two major subsidiaries: </p><ul>
<li>
<a href="https://www.smartkarma.com/entities/sk-chemicals-co-ltd-new" target="_blank" data-smartkarma-citation="entities:26190:1" rel="noopener">SK Chemicals Co Ltd/New (285130 KS)</a> </li>
<li><a href="https://www.smartkarma.com/entities/sk-gas-ltd" target="_blank" data-smartkarma-citation="entities:4088:1" rel="noopener">SK Gas Ltd (018670 KS)</a></li>
</ul><p>Since the stake value of these two subsidiaries is almost the same at this point, SK Discovery's share price should be affected by the share price of these two subsidiaries in a 5:5 ratio.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Holdings"}'>Holdings</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Stake"}'>Stake</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Value"}'>Value</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Chemicals Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>SK Chemicals Co Ltd</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"285130"}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula='="285130"'><strong>285130</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3345}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>33.45%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1132.082485056}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='=googlefinance(R[0]C[-2], "price")*googlefinance(R[0]C[-2], "shares")*R[0]C[-1]/1000000000'><strong>₩1,132.1B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Gas Ltd."}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>SK Gas Ltd.</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"018670"}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula='="018670"'><strong>018670</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.722}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>72.20%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1139.584384728}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='=googlefinance(R[0]C[-2], "price")*googlefinance(R[0]C[-2], "shares")*R[0]C[-1]/1000000000'><strong>₩1,139.6B</strong></td>
</tr>
<tr><td colspan="4"><strong> </strong></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Huvis Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Huvis Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"079980"}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula='="079980"'>079980</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.255}' data-sheets-numberformat='[null,3,"0.00%",1]'>25.50%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":91.933875}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula='=googlefinance(R[0]C[-2], "price")*googlefinance(R[0]C[-2], "shares")*R[0]C[-1]/1000000000'>₩91.9B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Other - unlisted"}'>Other - unlisted</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,2,"#,##0",1]'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,3,"0.00%",1]'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":186.394}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=186.394">₩186.4B</td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: KRX &amp; DART"}'>Source: KRX &amp; DART</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Assets"}'>Assets</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% NAV"}'>% NAV</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% GAV"}'>% GAV</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% Holdings"}'>% Holdings</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Chemicals Co Ltd"}' data-sheets-formula="=R[0]C[5]"><strong>SK Chemicals Co Ltd</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4642058632163233}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[7]/R13C[-3]"><strong>46.42%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4439548306409918}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[6]/R8C[-4]"><strong>44.40%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4439548306409918}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[5]/SUM(R2C[5]:R5C[5])"><strong>44.40%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Gas Ltd."}' data-sheets-formula="=R[0]C[5]"><strong>SK Gas Ltd.</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4672819869608142}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[7]/R13C[-3]"><strong>46.73%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.44689675814391905}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[6]/R8C[-4]"><strong>44.69%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.44689675814391905}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[5]/SUM(R2C[5]:R5C[5])"><strong>44.69%</strong></td>
</tr>
<tr><td colspan="4"><strong> </strong></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Huvis Corp"}' data-sheets-formula="=R[0]C[5]">Huvis Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.037697115154189074}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[7]/R13C[-3]">3.77%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.03605257429963345}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[6]/R8C[-4]">3.61%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.03605257429963345}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[5]/SUM(R2C[5]:R5C[5])">3.61%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Other - unlisted"}' data-sheets-formula="=R[0]C[5]">Other - unlisted</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.07643010894569513}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[7]/R13C[-3]">7.64%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.07309583691545556}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[6]/R8C[-4]">7.31%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.07309583691545556}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[5]/SUM(R2C[5]:R5C[5])">7.31%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Operation"}' data-sheets-formula="=R[6]C[0]">Operation</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[6]C[2]/R13C[-3]">0.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[6]C[1]/R8C[-4]">0.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,3,"0.00%",1]'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Holdco net cash/debt (deconsolidated)"}' data-sheets-formula="=R[6]C[0]">Holdco net cash/debt (deconsolidated)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.022470519277573812}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[6]C[2]/R13C[-3]">-2.25%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,3,"0.00%",1]'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,3,"0.00%",1]'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of pref shares"}' data-sheets-formula="=R[4]C[-3]">Value of pref shares</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.023144554999447935}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=-R[4]C[-3]/R13C[-3]">-2.31%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,3,"0.00%",1]'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,3,"0.00%",1]'>-</td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: DART &amp; KRX"}'>Source: DART &amp; KRX</td></tr>
</tbody>
</table><p>However, a significant price divergence has recently occurred between SK Discovery and them. Even with SK Chemicals' recent price fluctuations caused by the activist fund (Metrica), SK Discovery did not fully synchronize. However, what is more striking is that SK Discovery's share price is not at all in sync with the recent surge in SK Gas's share price.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/636/original/1.png?1632009568" class="editor-image img-responsive" data-smartkarma-image-id="230636"></figure></section><p>SK Discovery is currently at a 61% discount to NAV. Of course, this discount rate is at a historic high.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"NAV"}' data-sheets-note="Sang Hyun Park: Cases when a company's net cash position and the value of its publically traded interests are worth more than its market cap create the opportunity of a stub trade, in which investors can take a view that the company's core business will rise by shorting the minority stakes whilst going long the underlying. Such an opportunity has arisen in the wake of the Alibaba listing which has seen early investing company Yahoo trade at a discount to the value of its stake in Alibaba.">NAV</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of listed holdings"}'>Value of listed holdings</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2363.600744784}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=SUM(R[0]C[10]:R[2])">₩2,363.6B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of Holdco market cap"}'>- % of Holdco market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.4633468515379344}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-1]C[0]/((R[3]C[-3]*R[0]C[-3])/1000000000)">246.33%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of unlisted holdings"}'>Value of unlisted holdings</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":186.394}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=SUM(R[1]C[10])">₩186.4B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Stub value"}'>Stub value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-1590.4868527840001}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=(R[1]C[-3]*R[-2]C[-3]/1000000000)-R[-3]C[0]-R[-1]C[0]">-₩1,590.5B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Stub value per share"}'>Stub value per share</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-83543.3851546826}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-1]C[0]*1000000000/R[-3]C[-3]">-₩83,543</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of operating assets"}'>Value of operating assets</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=SUM(R[5]C[5])">₩0.0B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"GAV"}'>GAV</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2549.9947447840004}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-6]C[0]+R[-4]C[0]+R[-1]C[0]">₩2,550.0B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"GAV per share"}'>GAV per share</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":134028.83112132747}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-1]C[0]/R[4]C[-3]*1000000000">₩134,029</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Discount to GAV (excl. treasury shares)"}'>Discount to GAV (excl. treasury shares)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6239615045633263}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[-1]C[0]-R[-4]C[-3])/R[-1]C[0]">62.40%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Holdco net cash/debt (de-consolidated)"}'>Holdco net cash/debt (de-consolidated)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-54.8}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[2]C[5]">-₩54.8B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of pref shares"}'>Value of pref shares</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":56.44380525}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=(R[-5]C[-3]*R[-2]C[-3]+R[-5]C[-2]*R[-2]C[-2])/1000000000">₩56.4B</td>
</tr>
<tr><td colspan="2"></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"NAV"}'><strong>NAV</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2438.7509395340003}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-5]C[0]+R[-2]C[0]-R[-1]C[0]"><strong>₩2,438.8B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"NAV per share (excl. treasury shares)"}'><strong>NAV per share (excl. treasury shares)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":128181.80840975358}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-1]C[0]/R[-1]C[-3]*1000000000"><strong>₩128,182</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Discount to NAV"}'><strong>Discount to NAV</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.606808480662963}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[-1]C[0]-R[-9]C[-3])/R[-1]C[0]"><strong>60.68%</strong></td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX &amp; DART","6":1}'>Source: KRX &amp; DART</td></tr>
</tbody>
</table><p>The sigma on a 20-day moving average calculated by synthesizing these two affiliates at 50:50 is -1.35 at present, and the relative price ratio compared to this synthesis has diverged sharply over the past two weeks.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/640/original/image_9329493321632010559259.png?1632010561" class="editor-image img-responsive" data-smartkarma-image-id="230640"></figure>

SK Discovery is a pure holding company and consists of two major subsidiaries: 

SK Chemicals Co Ltd/New (285130 KS) 
SK Gas Ltd (018670 KS)
Since the stake value of these two subsidiaries is almost the same at this point, SK Discovery's share price should be affected by the share price of these two subsidiaries in a 5:5 ratio.








Holdings
Ticker
Stake
Value


SK Chemicals Co Ltd
285130
33.45%
₩1,132.1B


SK Gas Ltd.
018670
72.20%
₩1,139.6B

 

Huvis Corp
079980
25.50%
₩91.9B


Other - unlisted
-
-
₩186.4B

Source: KRX &amp; DART










Assets
% NAV
% GAV
% Holdings


SK Chemicals Co Ltd
46.42%
44.40%
44.40%


SK Gas Ltd.
46.73%
44.69%
44.69%

 

Huvis Corp
3.77%
3.61%
3.61%


Other - unlisted
7.64%
7.31%
7.31%


Operation
0.00%
0.00%
-


Holdco net cash/debt (deconsolidated)
-2.25%
-
-


Value of pref shares
-2.31%
-
-

Source: DART &amp; KRX

However, a significant price divergence has recently occurred between SK Discovery and them. Even with SK Chemicals' recent price fluctuations caused by the activist fund (Metrica), SK Discovery did not fully synchronize. However, what is more striking is that SK Discovery's share price is not at all in sync with the recent surge in SK Gas's share price.SK Discovery is currently at a 61% discount to NAV. Of course, this discount rate is at a historic high.





NAV

Value of listed holdings
₩2,363.6B


- % of Holdco market cap
246.33%


Value of unlisted holdings
₩186.4B


Stub value
-₩1,590.5B


Stub value per share
-₩83,543


Value of operating assets
₩0.0B


GAV
₩2,550.0B


GAV per share
₩134,029


Discount to GAV (excl. treasury shares)
62.40%


Holdco net cash/debt (de-consolidated)
-₩54.8B


Value of pref shares
₩56.4B



NAV
₩2,438.8B


NAV per share (excl. treasury shares)
₩128,182


Discount to NAV
60.68%

Source: KRX &amp; DART

The sigma on a 20-day moving average calculated by synthesizing these two affiliates at 50:50 is -1.35 at present, and the relative price ratio compared to this synthesis has diverged sharply over the past two weeks.

SK Discovery in a Massive Price Divergence Vs. The Synthetic Involving SK Gas

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<div>
<p>This week in StubWorld ...</p>
</div>
<div>
<div>
<div class="content-highlight">
<p>With the short-selling ban in Korea lifted this past Monday, this insight takes a cursory look at those Holdcos moving, and some that may yet have more to move. </p>
</div>
</div>
</div>
<div>
<p>Preceding my comments on Korean stubs are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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This week in StubWorld ...




With the short-selling ban in Korea lifted this past Monday, this insight takes a cursory look at those Holdcos moving, and some that may yet have more to move. 




Preceding my comments on Korean stubs are the weekly setup/unwind tables for Asia-Pacific Holdcos.



These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


<p>In this post, I examine the situations of the ongoing SK Discovery tender offer for SK Gas shareholders. In particular, I'm going to specifically look at actual proration possibilities and trade entry points as a result thereof.</p>

In this post, I examine the situations of the ongoing SK Discovery tender offer for SK Gas shareholders. In particular, I'm going to specifically look at actual proration possibilities and trade entry points as a result thereof.

SK Gas Tender Offer: Proration Risk, Hedge Ratio & Trade Timing

<p>Last Friday (Dec 1) was the official demerger date of <a href="https://www.smartkarma.com/entities/5181" target="_blank" data-smartkarma-citation="entities:5181:1">Sk Chemicals Co Ltd (006120 KS)</a>. That is, it is now official that we have two companies: 1. SK Discovery (holdco and surviving entity) and 2. SK Chemicals (opco and new entity). SK Chemicals stocks are now under the trade suspension period, which began on Nov 29 and will end on Jan 4. Both SK Discovery and SK Chemicals will be re-listed on Jan 5.</p><table class="table table-striped"><tbody><tr><td colspan="2" style="width: 735px;">Important dates</td></tr><tr><td style="width: 330.6929626464844px;">Demerger registration</td><td style="width: 404.3070373535156px;">Dec 1, 2017</td></tr><tr><td style="width: 330.6929626464844px;"><em><strong>Stock trade suspension period</strong></em></td><td style="width: 404.3070373535156px;"><em><strong>Nov 29, 2017 - Jan 4, 2018</strong></em></td></tr><tr><td style="width: 330.6929626464844px;"><em><strong>Listing (for both entities)</strong></em></td><td style="width: 404.3070373535156px;"><em><strong>Jan 5, 2018</strong></em></td></tr><tr><td colspan="2" style="width: 735px;"><em>Source: DART</em></td></tr></tbody></table><div class="content-highlight"><p><em>Regulatory filing about the official registration of this demerger. </em></p><p><em><a href="https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20171201000178" target="_blank">https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20171201000178</a></em></p></div><p><em><strong>Below, I summarized this report along with possible scenarios that will take place over the next several quarters given the shareholding situation of the major shareholders.</strong></em></p>

Last Friday (Dec 1) was the official demerger date of Sk Chemicals Co Ltd (006120 KS). That is, it is now official that we have two companies: 1. SK Discovery (holdco and surviving entity) and 2. SK Chemicals (opco and new entity). SK Chemicals stocks are now under the trade suspension period, which began on Nov 29 and will end on Jan 4. Both SK Discovery and SK Chemicals will be re-listed on Jan 5.Important datesDemerger registrationDec 1, 2017Stock trade suspension periodNov 29, 2017 - Jan 4, 2018Listing (for both entities)Jan 5, 2018Source: DARTRegulatory filing about the official registration of this demerger. https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20171201000178Below, I summarized this report along with possible scenarios that will take place over the next several quarters given the shareholding situation of the major shareholders.

SK Chemicals Holdco Conversion Process Update

South Korea

SK Gas Ltd imports, stores, and distributes liquefied petroleum gas (LPG). The Company supplies its products mainly to domestic market for household, the transportation industry, and petrochemical products manufacturers.

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Sk Gas Ltd (018670 KS)

Potential Changes of KOSPI 200 Index Components in the November 2021 Rebalance

In this insight, we discuss stocks that could get included or excluded in the November 2021 KOSPI 200 rebalance. We highlight 15 stocks that could...

Douglas Kim

SK Discovery in a Massive Price Divergence Vs. The Synthetic Involving SK Gas

This post examines the current massive price divergence between SK Discovery and its synthetic subsidiary of SK Gas and SK Chemicals.

Sanghyun Park

StubWorld: Shorting Korean Stubs

With the short-selling ban in Korea lifted this past Monday, this insight takes a cursory look at those Holdcos moving, and some that may yet have...

David Blennerhassett

SK Gas Tender Offer: Proration Risk, Hedge Ratio & Trade Timing

In this post, I examine the situations of the ongoing SK Discovery tender offer for SK Gas shareholders. In particular, I'm going to specifically...

Sanghyun Park

SK Chemicals Holdco Conversion Process Update

Last Friday (Dec 1) was the official demerger date of Sk Chemicals Co Ltd (006120 KS). That is, it is now official that we have two companies: 1....

Sanghyun Park

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