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.

Event-Driven

<ul>
<li>Until mid-January each year, local brokerages sell blue-chip stocks as they most aggressively engage in yearend dividend arb plays. They are repeatedly busy closing the arb positions until mid-January.</li>
<li>Local pensions' selling SKT can be interpreted as a preemptive portfolio cleaning to include LG Energy. Compared to other local institutions, pensions often become the first to do cleaning trading.</li>
<li>As we are past mid-January, the position closing for the yearend arb play should have been over. So entering SKT now doesn't seem like a bad idea.</li>
</ul>


Until mid-January each year, local brokerages sell blue-chip stocks as they most aggressively engage in yearend dividend arb plays. They are repeatedly busy closing the arb positions until mid-January.
Local pensions' selling SKT can be interpreted as a preemptive portfolio cleaning to include LG Energy. Compared to other local institutions, pensions often become the first to do cleaning trading.
As we are past mid-January, the position closing for the yearend arb play should have been over. So entering SKT now doesn't seem like a bad idea.


SK Telecom at a 6+% Dividend Yield: Entry Timing Analysis

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>After the market close today, SK Square announced a block deal worth 400 billion won involving 6.078 million shares. The block deal sale accounts for 4.3% of outstanding shares.</li>
<li>The block deal price is expected to be completed between 62,100 won and 66,000 won (discount of 5.9% to 0.0%).</li>
<li>We would take the deal and we continue to have a positive view of SK Square. Our valuation suggests an implied price of 86,388 won. </li>
</ul>


After the market close today, SK Square announced a block deal worth 400 billion won involving 6.078 million shares. The block deal sale accounts for 4.3% of outstanding shares.
The block deal price is expected to be completed between 62,100 won and 66,000 won (discount of 5.9% to 0.0%).
We would take the deal and we continue to have a positive view of SK Square. Our valuation suggests an implied price of 86,388 won. 


SK Square - Announces a Block Deal Sale of About 400 Billion Won

<ul>
<li>It seems like a good bet on the possibility of providing downside rigidity to SK Telecom's current share price until the end of the year ex-dividend.</li>
<li>The basis for judging that this 60% for SK Square is rather harsh is that it has several subsidiaries scheduled to be listed in the not-too-distant future.</li>
<li>In conclusion, both stocks are unlikely to rise dramatically, but at least they are highly likely to bottom out at the current share price and gradually move upward.</li>
</ul>


It seems like a good bet on the possibility of providing downside rigidity to SK Telecom's current share price until the end of the year ex-dividend.
The basis for judging that this 60% for SK Square is rather harsh is that it has several subsidiaries scheduled to be listed in the not-too-distant future.
In conclusion, both stocks are unlikely to rise dramatically, but at least they are highly likely to bottom out at the current share price and gradually move upward.


<ul>
<li>In this insight, we provide the three most important factors impacting the relisting of SK Telecom and SK Square. </li>
<li>These three factors include a) timing of re-listing (emergence of Omicron variant), b) valuation post split, and c) impact of indices/passive investing.</li>
<li>Our analysis suggests higher valuation upside for SK Square versus SK Telecom (versus initial price). </li>
</ul>


In this insight, we provide the three most important factors impacting the relisting of SK Telecom and SK Square. 
These three factors include a) timing of re-listing (emergence of Omicron variant), b) valuation post split, and c) impact of indices/passive investing.
Our analysis suggests higher valuation upside for SK Square versus SK Telecom (versus initial price). 


SK Telecom & SK Square Relisting - Three Most Important Factors

<ul>
<li>The SK Telecom/SK Square relisting is around the corner, November 29.</li>
<li>This post summarizes <strong>1. Demerger overview, 2. Base price on the relisting date, 3. Index passive flow, and 4. Value accretion</strong>
</li>
<li>
<strong>ADS refund:</strong> SKT IR didn't disclose how many of the ADSs applied for a refund but confirmed that Citi would sell it within the scope of reducing the market impact.</li>
</ul>


The SK Telecom/SK Square relisting is around the corner, November 29.
This post summarizes 1. Demerger overview, 2. Base price on the relisting date, 3. Index passive flow, and 4. Value accretion


ADS refund: SKT IR didn't disclose how many of the ADSs applied for a refund but confirmed that Citi would sell it within the scope of reducing the market impact.


SK Telecom & SK Square Relisting Walkthrough on November 29

South Korea

SK Telecom Co., Ltd. is a Korean mobile and telecommunications operator. The Company provides cellular voice, wireless data, and wireless internet services. SK Telecom also offers fixed line services and platform services.

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

SK Telecom (017670 KS)

SK Telecom at a 6+% Dividend Yield: Entry Timing Analysis

SK Telecom is now at a 6+% dividend yield, which is, of course, astounding for a leading telco in a developed market. This post examines what drove...

Sanghyun Park

SK Square - Announces a Block Deal Sale of About 400 Billion Won

After the market close today, SK Square announced a block deal worth 400 billion won involving 6.078 million shares. The block deal sale accounts...

Douglas Kim

SK Telecom & SK Square Valuations

This post discusses the current valuations of both SK Telecom and SK Square after re-listing and where they should be heading in the short term.

Sanghyun Park

SK Telecom & SK Square Relisting - Three Most Important Factors

In this insight, we provide the three most important factors impacting the relisting of SK Telecom and SK Square. Our analysis suggests higher...

Douglas Kim

SK Telecom & SK Square Relisting Walkthrough on November 29

This post summarizes 1. Demerger overview, 2. Base price on the relisting date, 3. Index passive flow, and 4. Value accretion (and the ADS refund...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)