Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A double dose of stubs this week! <a href="https://www.smartkarma.com/entities/t-way-air-co-ltd" target="_blank" data-smartkarma-citation="entities:25923:1" rel="noopener">T'Way Air (091810 KS)</a>'s second-largest shareholder is seeking to spill the board. T'way Air and <a href="https://www.smartkarma.com/entities/t-way-holdings-inc" target="_blank" data-smartkarma-citation="entities:16747:1" rel="noopener">T'Way Holdings (004870 KS)</a> are up big time.</li>
<li>Preceding my comments on the T'way Group are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


A double dose of stubs this week! T'Way Air (091810 KS)'s second-largest shareholder is seeking to spill the board. T'way Air and T'Way Holdings (004870 KS) are up big time.
Preceding my comments on the T'way Group are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: T'Way Air (091810 KS) Takes Off As Key Shareholder Seeks Board Spill

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>An M&amp;A fight for T'Way Air has officially erupted as Daemyung Sono Group sent a letter to the current management requesting several management improvement measures including resignation of existing management.</li>
<li>Currently, T'Way Air's largest shareholders are T'Way Holdings and Yelimdang which combined have 30.07% stake in T'Way Air. Daemyung Sono is the second largest shareholder with a 26.77% stake.</li>
<li>From Daemyung Sono Chairman Seo Jun-Hyeok perspective, entering the aviation industry is attractive because it can create synergy with existing hotels and resort businesses.</li>
</ul>


An M&amp;A fight for T'Way Air has officially erupted as Daemyung Sono Group sent a letter to the current management requesting several management improvement measures including resignation of existing management.
Currently, T'Way Air's largest shareholders are T'Way Holdings and Yelimdang which combined have 30.07% stake in T'Way Air. Daemyung Sono is the second largest shareholder with a 26.77% stake.
From Daemyung Sono Chairman Seo Jun-Hyeok perspective, entering the aviation industry is attractive because it can create synergy with existing hotels and resort businesses.


Equity Bottom-Up

<ul>
<li>Nearly four years have passed since Korean Air first proposed a merger with Asiana Airlines in November 2020. Despite repeated delays, it appears that this merger could finally occur.</li>
<li>There is now a higher probability of Korean Air and Asiana Airlines receiving the final merger approval from the United States Department of Justice. </li>
<li>Combined with attractive valuations, better balance sheet, and improved profitability from the merged entity, we believe that Korean Air shares could continue to outperform KOSPI in the next 12 months. </li>
</ul>


Nearly four years have passed since Korean Air first proposed a merger with Asiana Airlines in November 2020. Despite repeated delays, it appears that this merger could finally occur.
There is now a higher probability of Korean Air and Asiana Airlines receiving the final merger approval from the United States Department of Justice. 
Combined with attractive valuations, better balance sheet, and improved profitability from the merged entity, we believe that Korean Air shares could continue to outperform KOSPI in the next 12 months. 


Korean Air Spearheading the Korean Airline Industry Consolidation

<ul>
<li>The <a href="https://www.smartkarma.com/entities/guotai-junan-securities-co-ltd-5dfaf2c5-76d3-4f34-a77d-118787fd7091" target="_blank" data-smartkarma-citation="entities:23752:1" rel="noopener">Guotai Junan Securities (2611 HK)</a>/<a href="https://www.smartkarma.com/entities/haitong-securities-co-ltd-h" target="_blank" data-smartkarma-citation="entities:5665:1" rel="noopener">Haitong Securities Co Ltd (H) (6837 HK)</a> merger is a done deal.  The key risk, as with<a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">TCM (570 HK)</a>'s Offer, is one of timing.</li>
<li>IF you are an arbitrageur,  Buy <a href="https://www.smartkarma.com/entities/shin-kong-financial-holding" target="_blank" data-smartkarma-citation="entities:15351:1" rel="noopener">Shin Kong Financial Holding (2888 TT)</a> vs A Basket of FHC Peers (not including Taishin).</li>
<li>
<a href="https://www.smartkarma.com/entities/first-pacific-co-ltd" target="_blank" data-smartkarma-citation="entities:173:1" rel="noopener">First Pacific Co (142 HK)</a>'s 46.2% share of <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>at delisting last year was worth ~US$1.25bn. It is now potentially worth ~US$3.21bn. </li>
</ul>


The Guotai Junan Securities (2611 HK)/Haitong Securities Co Ltd (H) (6837 HK) merger is a done deal.  The key risk, as withTCM (570 HK)'s Offer, is one of timing.
IF you are an arbitrageur,  Buy Shin Kong Financial Holding (2888 TT) vs A Basket of FHC Peers (not including Taishin).

First Pacific Co (142 HK)'s 46.2% share of Metro Pacific Investments Co (MPI PM)at delisting last year was worth ~US$1.25bn. It is now potentially worth ~US$3.21bn. 


Last Week in Event SPACE: Guotai/Haitong, Shin Kong, China Conch Ventures, First Pac, Zhejiang E'way

<ul>
<li>In the past several days, there have been an increased speculation in the local media about a potential M&amp;A fight for T'Way Air between Yearimdang Publishing and Daemyung Sono Group. </li>
<li>The difference in ownership of T'Way Air by Daemyung Sono Group and Yearimdang Group is only 3.2%, which could lead to an intensified management rights dispute. </li>
<li>According to local sources, Daemyung Sono Group has recently contacted several law firms to review plans to potentially conduct a tender offer on T'Way Air. </li>
</ul>


In the past several days, there have been an increased speculation in the local media about a potential M&amp;A fight for T'Way Air between Yearimdang Publishing and Daemyung Sono Group. 
The difference in ownership of T'Way Air by Daemyung Sono Group and Yearimdang Group is only 3.2%, which could lead to an intensified management rights dispute. 
According to local sources, Daemyung Sono Group has recently contacted several law firms to review plans to potentially conduct a tender offer on T'Way Air. 


T'Way Air: Increasing Possibility of an M&A Fight Between Yearimdang and Daemyung Sono Group

South Korea

Tway Air Co., Ltd operates as an airline company. The Company offers flight, hotel, car booking services. Tway Air also provides reissuance of ticket, baggage, airport, and in-flight services. Tway Air serves customers worldwide.

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T'Way Air (091810 KS)

StubWorld: T'Way Air (091810 KS) Takes Off As Key Shareholder Seeks Board Spill

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A Hostile M&A Fight for T'Way Air

An M&A fight for T'Way Air has officially erupted as Daemyung Sono Group sent a letter to the current management requesting several management...

Douglas Kim

Korean Air Spearheading the Korean Airline Industry Consolidation

Nearly four years have passed since Korean Air first proposed a merger with Asiana Airlines in November 2020. Despite repeated delays, it appears...

Douglas Kim

Last Week in Event SPACE: Guotai/Haitong, Shin Kong, China Conch Ventures, First Pac, Zhejiang E'way

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

T'Way Air: Increasing Possibility of an M&A Fight Between Yearimdang and Daemyung Sono Group

In the past several days, there have been an increased speculation in the local media about a potential M&A fight for T'Way Air between Yearimdang...

Douglas Kim

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