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>In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2024.</li>
<li>We expect up to four changes in the KOSPI 200 index during the June 2024 index rebal event (down from 5 expected last month)  based on the latest available data.</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).
In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2024.
We expect up to four changes in the KOSPI 200 index during the June 2024 index rebal event (down from 5 expected last month)  based on the latest available data.


Quiddity Leaderboard KOSPI 200 Jun 24: Four Changes Likely

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>The tendering price is ₩8,750, roughly 7% higher than the last close. However, Affinity's commitment makes this event noteworthy.</li>
<li>Lock&amp;Lock requires Affinity to target 30%. To reach 95%, securing 25% is needed, much higher than SsangYong C&amp;E, indicating potential price volatility.</li>
<li>A second public offering is likely due to the widening gap between the ownership threshold and actual acquisition percentage in Lock&amp;Lock. This could impact prices significantly during the tendering period.</li>
</ul>


The tendering price is ₩8,750, roughly 7% higher than the last close. However, Affinity's commitment makes this event noteworthy.
Lock&amp;Lock requires Affinity to target 30%. To reach 95%, securing 25% is needed, much higher than SsangYong C&amp;E, indicating potential price volatility.
A second public offering is likely due to the widening gap between the ownership threshold and actual acquisition percentage in Lock&amp;Lock. This could impact prices significantly during the tendering period.


Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case

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>Around 85% of the way through the review period, we see four 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>The impact on the potential inclusions ranges from 0.4-8 days of ADV while the impact on the potential deletions varies from 1-13 days of ADV.</li>
<li>
<a href="https://www.smartkarma.com/entities/hanmi-semiconductor-co-ltd" target="_blank" data-smartkarma-citation="entities:15587:1" rel="noopener">Hanmi Semiconductor (042700 KS)</a> is up 72% in the last two months following its appearance on the list of potential <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> inclusions in June.</li>
</ul>


Around 85% of the way through the review period, we see four changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the June rebalance.
The impact on the potential inclusions ranges from 0.4-8 days of ADV while the impact on the potential deletions varies from 1-13 days of ADV.

Hanmi Semiconductor (042700 KS) is up 72% in the last two months following its appearance on the list of potential Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) inclusions in June.


KOSPI200 Index Rebalance Preview: Hanmi Semiconductor (042700 KS) Flying High

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.

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: Four Changes Likely

The June 2024 KOSPI Review has most of the same names on the leaderboard as last month. There are now four expected changes. Still tough to trade.

Travis Lundy

Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case

This post delves into the trading perspectives of the Lock&Lock tender offer, highlighting its differences from the recent Ssangyong C&E case.

Sanghyun Park

KOSPI200 Index Rebalance Preview: Hanmi Semiconductor (042700 KS) Flying High

There could be 5 changes for the KOSPI200 Index in June. Hanmi Semiconductor is up 72% over the last 2 months following its potential inclusion in...

Brian Freitas