Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>In the past two trading days, share prices of T'Way Air (091810 KS) and T'Way Holdings (004870 KS) are down 16.4% and 14.1%, respectively.</li>
<li>According to Hankyung daily, Daemyung Sono Group Chairman Seo may choose to wage a public opinion war, instead of purchasing additional shares.  </li>
<li>If Daemyung Sono Group is unable to take over the management control of T'Way Air using this method, then a potential tender offer of T'Way Air is possible later on. </li>
</ul>


In the past two trading days, share prices of T'Way Air (091810 KS) and T'Way Holdings (004870 KS) are down 16.4% and 14.1%, respectively.
According to Hankyung daily, Daemyung Sono Group Chairman Seo may choose to wage a public opinion war, instead of purchasing additional shares.  
If Daemyung Sono Group is unable to take over the management control of T'Way Air using this method, then a potential tender offer of T'Way Air is possible later on. 


Daemyung Sono Group May Wage a Public Opinion War for T'Way Air

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Shinko Electric Industries / Event-Driven

<ul>
<li>JIC announced a "mid-February" start date for <a href="https://www.smartkarma.com/entities/shinko-electric-industries" target="_blank" data-smartkarma-citation="entities:15066:1" rel="noopener">Shinko Electric (6967 JP)</a>'s Tender Offer. That's a trifle disappointing based on when SAMR approved, but there are lots of people involved here.</li>
<li>What has been the long-term trend and the trend of the last two years is different. Be long <a href="https://www.smartkarma.com/entities/tsuruha-holdings-inc" target="_blank" data-smartkarma-citation="entities:9536:1" rel="noopener">Tsuruha (3391 JP)</a>, short <a href="https://www.smartkarma.com/entities/welcia-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20895:1" rel="noopener">Welcia (3141 JP)</a> until above 4.5x, maybe 4.8x.</li>
<li>
<a href="https://www.smartkarma.com/entities/macromill-inc" target="_blank" data-smartkarma-citation="entities:24026:1" rel="noopener">Macromill, Inc (3978 JP)</a>'s reward/risk ratio over the next year of buying at ¥1,250 and seeing what happens is quite good, especially if the deal breaks.</li>
</ul>


JIC announced a "mid-February" start date for Shinko Electric (6967 JP)'s Tender Offer. That's a trifle disappointing based on when SAMR approved, but there are lots of people involved here.
What has been the long-term trend and the trend of the last two years is different. Be long Tsuruha (3391 JP), short Welcia (3141 JP) until above 4.5x, maybe 4.8x.

Macromill, Inc (3978 JP)'s reward/risk ratio over the next year of buying at ¥1,250 and seeing what happens is quite good, especially if the deal breaks.


Last Week in Event SPACE: Shinko Elec, Tsuruha/Welcia, Macromill, Sun Corp/Cellebrite, MicroStrategy

<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

<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.


<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

T'way Holdings Incorporation manufactures and supplies ready-mixed concrete and concrete  piles to construction sites.  The Company also operates a toy discount store, a theme park, and rental business.

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T'Way Holdings (004870 KS)

Daemyung Sono Group May Wage a Public Opinion War for T'Way Air

According to Hankyung daily, Daemyung Sono Group Chairman Seo may choose to wage a public opinion war, instead of purchasing additional shares.

Douglas Kim

Last Week in Event SPACE: Shinko Elec, Tsuruha/Welcia, Macromill, Sun Corp/Cellebrite, MicroStrategy

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

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

TAH is trading at a 44% disc. to NAV, and overshot the mark vs. TAC. But you can't short sell. And TAC isn't inexpensive vs. domestic peers. I'd...

David Blennerhassett

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

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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