Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>I tally 48 - 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 deals this week: the <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a>/<a href="https://www.smartkarma.com/entities/celltrion-healthcare-co-ltd" target="_blank" data-smartkarma-citation="entities:23641:1" rel="noopener">Celltrion Healthcare (091990 KS)</a> merger; and the Tender Offers for <a href="https://www.smartkarma.com/entities/sanei-architecture-planning" target="_blank" data-smartkarma-citation="entities:2065:1" rel="noopener">Sanei Architecture Planning (3228 JP)</a> and <a href="https://www.smartkarma.com/entities/t-k-toka-co-ltd" target="_blank" data-smartkarma-citation="entities:18678:1" rel="noopener">T&amp;K Toka (4636 JP)</a>.</li>
<li>Key updates took place for <a href="https://www.smartkarma.com/entities/tesserent-ltd" target="_blank" data-smartkarma-citation="entities:30716:1" rel="noopener">Tesserent Ltd (TNT AU)</a>, <a href="https://www.smartkarma.com/entities/ddh1-ltd" target="_blank" data-smartkarma-citation="entities:36022:1" rel="noopener">DDH1 (DDH AU)</a>, <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a>, <a href="https://www.smartkarma.com/entities/metro-pacific-investments-co" target="_blank" data-smartkarma-citation="entities:1054:1" rel="noopener">Metro Pacific Investments Co (MPI PM)</a>, and <a href="https://www.smartkarma.com/entities/chindata-group-holdings-adr" target="_blank" data-smartkarma-citation="entities:29274:1" rel="noopener">Chindata Group (CD US)</a>.</li>
</ul>


I tally 48 - 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 deals this week: the Celltrion Inc (068270 KS)/Celltrion Healthcare (091990 KS) merger; and the Tender Offers for Sanei Architecture Planning (3228 JP) and T&amp;K Toka (4636 JP).
Key updates took place for Tesserent Ltd (TNT AU), DDH1 (DDH AU), L'Occitane (973 HK), Metro Pacific Investments Co (MPI PM), and Chindata Group (CD US).


(Mostly) Asia-Pac Weekly Risk Arb Wrap: Celltrion, Sanei Architecture, T&K Toka, MPI, Chindata

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>With just the SK Networks stake, both of these conditions are already satisfied. So, the key point will be how quickly the spread of the cash offer narrows next Monday.</li>
<li>We need to watch whether the spread for the exchange offer opens. As SK Networks is a K200 constituent, it's subject to short selling, making a Long Short play possible.</li>
<li>Worth noting, among the 24% minority shareholders, NPS and KIT hold a combined 15%, potentially leading to limited market circulation volume. This is something we should also be mindful of.</li>
</ul>


With just the SK Networks stake, both of these conditions are already satisfied. So, the key point will be how quickly the spread of the cash offer narrows next Monday.
We need to watch whether the spread for the exchange offer opens. As SK Networks is a K200 constituent, it's subject to short selling, making a Long Short play possible.
Worth noting, among the 24% minority shareholders, NPS and KIT hold a combined 15%, potentially leading to limited market circulation volume. This is something we should also be mindful of.


Fully Disseting SK Rent A Car's Hybrid Tender Offer Disclosure, Whose Cash Offer at a 5.7% Spread

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>It was announced after the market today (18 November) that SK Networks (001740 KS) will acquire a 40% stake in Zinus (013890 KS) for 1.1 trillion won. </li>
<li>For now, SK Networks, which is already highly leveraged, has yet to reveal exactly how it will fund this acquisition. </li>
<li>We believe that the market will have a slightly positive view on Zinus and a negative view on SK Networks in the near future based on this M&amp;A deal.</li>
</ul>


It was announced after the market today (18 November) that SK Networks (001740 KS) will acquire a 40% stake in Zinus (013890 KS) for 1.1 trillion won. 
For now, SK Networks, which is already highly leveraged, has yet to reveal exactly how it will fund this acquisition. 
We believe that the market will have a slightly positive view on Zinus and a negative view on SK Networks in the near future based on this M&amp;A deal.


SK Networks Plans to Acquire a 40% Stake in Zinus for 1.1 Trillion Won

Equity Bottom-Up

Two big drivers of the Korean stock market this year (especially since the lows in March 2020) have been the huge participation by local retail investors and the other major factor has been a big jump in the number of companies conducting share buybacks. In this insight, we discuss in detail the latter factor. As of 17 July 2020, there were 552 listed companies that have repurchased their shares or have announced that they will buy back shares since the beginning of the year. This represents a big jump of 4.2x as compared to the same period on a YoY basis.In this insight, we have identified 179 companies that have reported share buybacks from 1 June to 23 July 2020.

Two big drivers of the Korean stock market this year (especially since the lows in March 2020) have been the huge participation by local retail investors and the other major factor has been a big jump in the number of companies conducting share buybacks. In this insight, we discuss in detail the latter factor. As of 17 July 2020, there were 552 listed companies that have repurchased their shares or have announced that they will buy back shares since the beginning of the year. This represents a big jump of 4.2x as compared to the same period on a YoY basis.In this insight, we have identified 179 companies that have reported share buybacks from 1 June to 23 July 2020. 

Number of Companies Conducting Share Buybacks in Korea in 2020 YTD - A Big Jump of 4.2x YoY

Quantitative Analysis

First, let me tell you this. The worst may not yet be to come. But it also seems right that we are currently in a highly rare situation as well. The previous 5D yield of the KOSPI index hit -12.03% as of now. What does it mean? The odds that we are in this situation are 0.04% based on the last 30 years from 1990 to today.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/122/753/original/5.png?1584029598" class="editor-image img-responsive" data-smartkarma-image-id="122753"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/122/754/original/3.png?1584029617" class="editor-image img-responsive" data-smartkarma-image-id="122754"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/122/755/original/1.png?1584029629" class="editor-image img-responsive" data-smartkarma-image-id="122755"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/122/756/original/2.png?1584029635" class="editor-image img-responsive" data-smartkarma-image-id="122756"></figure>It is worth noting that the winning percentage in a situation like this for the next five trading days is a whopping 73%, and the average KOSPI index yield was 4.32%.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/122/759/original/4.png?1584030387" class="editor-image img-responsive" data-smartkarma-image-id="122759"></figure>

First, let me tell you this. The worst may not yet be to come. But it also seems right that we are currently in a highly rare situation as well. The previous 5D yield of the KOSPI index hit -12.03% as of now. What does it mean? The odds that we are in this situation are 0.04% based on the last 30 years from 1990 to today.It is worth noting that the winning percentage in a situation like this for the next five trading days is a whopping 73%, and the average KOSPI index yield was 4.32%.

Time for Capital Structure Basket Arbitrage in Korea? Target Names in Basket to Short & Long

South Korea

SK Networks Co., Ltd. is a general trading company.  The Company trades general merchandise, such as steel, oil, timber, petrochemical, household appliances, clothing, textile products, and information technology equipment.  SK Networks provides insurance and financial services through subsidiaries.

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

SK Networks (001740 KS)

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Celltrion, Sanei Architecture, T&K Toka, MPI, Chindata

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

Fully Disseting SK Rent A Car's Hybrid Tender Offer Disclosure, Whose Cash Offer at a 5.7% Spread

This post fully dissects the disclosure about the hybrid tender offer, which combines exchange and cash offers, for SK Rent A Car by SK Networks,...

Sanghyun Park

SK Networks Plans to Acquire a 40% Stake in Zinus for 1.1 Trillion Won

It was announced after the market today (18 November) that SK Networks (001740 KS) will acquire a 40% stake in Zinus (013890 KS) for 1.1 trillion won.

Douglas Kim

Time for Capital Structure Basket Arbitrage in Korea? Target Names in Basket to Short & Long

First, let me tell you this. The worst may not yet be to come. But it also seems right that we are currently in a highly rare situation as well....

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Celltrion, Sanei Architecture, T&K Toka, MPI, Chindata

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

Fully Disseting SK Rent A Car's Hybrid Tender Offer Disclosure, Whose Cash Offer at a 5.7% Spread

This post fully dissects the disclosure about the hybrid tender offer, which combines exchange and cash offers, for SK Rent A Car by SK Networks,...

Sanghyun Park

SK Networks Plans to Acquire a 40% Stake in Zinus for 1.1 Trillion Won

It was announced after the market today (18 November) that SK Networks (001740 KS) will acquire a 40% stake in Zinus (013890 KS) for 1.1 trillion won.

Douglas Kim

Number of Companies Conducting Share Buybacks in Korea in 2020 YTD - A Big Jump of 4.2x YoY

Two big drivers of the Korean stock market this year (especially since the lows in March 2020) have been the huge participation by local retail...

Douglas Kim

Time for Capital Structure Basket Arbitrage in Korea? Target Names in Basket to Short & Long

First, let me tell you this. The worst may not yet be to come. But it also seems right that we are currently in a highly rare situation as well....

Sanghyun Park