Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

Ssangyong Cement Industrial / Event-Driven

<ul>
<li>On 4 February, the local media reported that Hahn &amp; Co private equity firm is launching a tender offer on the remaining shares of Ssangyong Cement Industrial (003410 KS) (Ssangyong C&amp;E).</li>
<li>Tender offer price is 7,000 won (9.2% higher than the closing price on 2 February) and the tender offer amount is 702 billion won. </li>
<li>We believe Ssangyong C&amp;E's shares are likely close to the tender offer price today. We believe there is higher probability of Hahn &amp; Co successfully completing this tender offer. </li>
</ul>


On 4 February, the local media reported that Hahn &amp; Co private equity firm is launching a tender offer on the remaining shares of Ssangyong Cement Industrial (003410 KS) (Ssangyong C&amp;E).
Tender offer price is 7,000 won (9.2% higher than the closing price on 2 February) and the tender offer amount is 702 billion won. 
We believe Ssangyong C&amp;E's shares are likely close to the tender offer price today. We believe there is higher probability of Hahn &amp; Co successfully completing this tender offer. 


Hahn & Co Launches a Tender Offer on Remaining Shares of Ssangyong C&E

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Today, 5 February, PE-outfit Hahn &amp; Co commenced its Tender Offer for the 20.1% of shares not held in cement manufacturer <a href="https://www.smartkarma.com/entities/ssangyong-cement-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:9345:1" rel="noopener">Ssangyong C&amp;E (003410 KS)</a>.</li>
<li>The Tender Offer price is ₩7,000/share, a 9.2% premium to last close; although shares did gain ~12.2% just prior to the Offer.</li>
<li>There is no minimum acceptance condition. Hahn &amp; Co will purchase all shares tendered. Payment is the 8 March. This will trade tight. </li>
</ul>


Today, 5 February, PE-outfit Hahn &amp; Co commenced its Tender Offer for the 20.1% of shares not held in cement manufacturer Ssangyong C&amp;E (003410 KS).
The Tender Offer price is ₩7,000/share, a 9.2% premium to last close; although shares did gain ~12.2% just prior to the Offer.
There is no minimum acceptance condition. Hahn &amp; Co will purchase all shares tendered. Payment is the 8 March. This will trade tight. 


Ssangyong C&E (003410 KS): Hahn & Co's Tender Offer

Travis Lundy

<ul>
<li>KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).</li>
<li>The reference period for the June 2024 index rebal event ended recently. In this insight, we take a look at our final expected ADDs/DELs.</li>
<li>There has been one change to our list of expected ADDs presented in my last insight (<a href="https://www.smartkarma.com/insights/quiddity-leaderboard-kospi-200-jun-24-four-changes-likely" target="_blank" rel="noopener">link</a>).</li>
</ul>


KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
The reference period for the June 2024 index rebal event ended recently. In this insight, we take a look at our final expected ADDs/DELs.
There has been one change to our list of expected ADDs presented in my last insight (link).


Quiddity Leaderboard KOSPI 200 Jun 24: One Last-Minute Change to Rankings

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>Ssangyong C&amp;E will be excluded in June pre-delisting due to the float rate rule. Replacement will be chosen from the highest market cap existing constituents excluded in the June review.</li>
<li>Likely owing to the recent expansion of macro variables in the local market, a clear correlation between results and price impact is not observed even at the screening period's conclusion.</li>
<li>There's a chance of price impact closer to the effective date, suggesting potentially more effective basket trading. However, short instrument absence necessitates using market indices as hedges.</li>
</ul>


Ssangyong C&amp;E will be excluded in June pre-delisting due to the float rate rule. Replacement will be chosen from the highest market cap existing constituents excluded in the June review.
Likely owing to the recent expansion of macro variables in the local market, a clear correlation between results and price impact is not observed even at the screening period's conclusion.
There's a chance of price impact closer to the effective date, suggesting potentially more effective basket trading. However, short instrument absence necessitates using market indices as hedges.


Addressing Areas of Confusion Surrounding the KOSPI 200 June Rebalancing

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>With the review period complete, there could be up to 5 changes for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> at the June rebalance.</li>
<li>Hahn&amp;Co now own over 96% of the shares in <a href="https://www.smartkarma.com/entities/ssangyong-cement-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:9345:1" rel="noopener">Ssangyong Cement Industrial (003410 KS)</a> and there could be another change at or before the June rebalance.</li>
<li>Passive trackers will need to trade between 0.5-15x ADV on the index changes. There are big shorts in <a href="https://www.smartkarma.com/entities/l-f-co-ltd" target="_blank" data-smartkarma-citation="entities:14300:1" rel="noopener">L&amp;F (066970 KS)</a> and <a href="https://www.smartkarma.com/entities/lotte-tour-development-co-ltd" target="_blank" data-smartkarma-citation="entities:5526:1" rel="noopener">Lotte Tour Development Co, Ltd. (032350 KS)</a>. </li>
</ul>


With the review period complete, there could be up to 5 changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the June rebalance.
Hahn&amp;Co now own over 96% of the shares in Ssangyong Cement Industrial (003410 KS) and there could be another change at or before the June rebalance.
Passive trackers will need to trade between 0.5-15x ADV on the index changes. There are big shorts in L&amp;F (066970 KS) and Lotte Tour Development Co, Ltd. (032350 KS). 


KOSPI200 Index Rebalance Preview: 5-6 Changes Possible from Now to June

South Korea

Ssangyong Cement Industrial Co., Ltd. produces cement and ready-mixed concrete. The Company also manufactures fine ceramics for industrial uses and ferrite magnets for components used in audio equipment.  In addition, Ssangyong Cement Industrial develops housing, plant engineering, environmental resources, and leisure businesses.

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Ssangyong Cement Industrial (003410 KS)

Hahn & Co Launches a Tender Offer on Remaining Shares of Ssangyong C&E

The deadline period for the tender offer of Ssangyong C&E ends on 6 March. Tender offer price is 7,000 won. Current price is 6,970 won. Even if the...

Douglas Kim

Ssangyong C&E (003410 KS): Hahn & Co's Tender Offer

Currently trading (expectedly) tight at a gross spread of 1%. If not already in, with taxes in mind, there's not a lot of juice at these levels. ...

David Blennerhassett

Quiddity Leaderboard KOSPI 200 Jun 24: One Last-Minute Change to Rankings

The KOSPI 200 rebal reference period is now finished. There is one change to our expectations for the June 2024 index review based on a share...

Travis Lundy

Addressing Areas of Confusion Surrounding the KOSPI 200 June Rebalancing

This post aims to provide clarity on several aspects of confusion surrounding the KOSPI 200 regular rebalancing in June.

Sanghyun Park

KOSPI200 Index Rebalance Preview: 5-6 Changes Possible from Now to June

There could be 5-6 changes for the KOSPI200 from now to June. Watch for the HD Hyundai Marine listing too. Impact is between 5-15x ADV and there...

Brian Freitas

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