Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Tailim Paper is the number one company in Korea specializing in the production of corrugated cardboard.</li>
<li>Tailim Paper is getting ready to complete an IPO towards the end of May. The IPO price range is from 19,000 won to 22,000 won.</li>
<li>According to the bankers' valuation, the expected market cap of Tailim Paper is from 616 billion won  to 713 billion won.</li>
</ul>


Tailim Paper is the number one company in Korea specializing in the production of corrugated cardboard.
Tailim Paper is getting ready to complete an IPO towards the end of May. The IPO price range is from 19,000 won to 22,000 won.
According to the bankers' valuation, the expected market cap of Tailim Paper is from 616 billion won  to 713 billion won.


Event-Driven

<a href="https://www.smartkarma.com/entities/tailim-packaging-ind-co-ltd" target="_blank" data-smartkarma-citation="entities:6759:1" rel="noopener">Tailim Packaging Ind (011280 KS)</a> and Tailim Paper which have been up for sale are in the last stages of the M&amp;A process. Tailim Packaging is one of the largest makers of corrugated cardboard in Korea. A private equity firm called IMM PE acquired these companies in 2015 and have put these companies up for sale. The local media have mentioned around 700 billion won ($580 million) to more than 1 trillion won ($830 million) for the combined stakes of 70.9% of Tailim Packaging and a 100% stake of Tailim Paper. 
Five companies including the Hansol Group (Hansol Paper), TPG, Bain Capital, Shining Paper (China), and Sae-a Trading have shown keen interests in acquiring Taelim Packaging and Tailim Paper. 
A key leading driver of the domestic packaging market is the rapid growth of e-commerce. According to the Korean logistics association, the online shopping market size in Korea increased from 54 trillion won in 2015 to 111 trillion won in 2018.
Tailim Packaging shares are up 193% from the end of 2017 and it appears that its share price has already reflected much of the M&amp;A premium. Therefore, there is actually a higher likelihood that Tailim Packaging shares underperform in the coming months as the company is actually acquired by one of the five companies mentioned in this report.

Tailim Packaging Ind (011280 KS) and Tailim Paper which have been up for sale are in the last stages of the M&amp;A process. Tailim Packaging is one of the largest makers of corrugated cardboard in Korea. A private equity firm called IMM PE acquired these companies in 2015 and have put these companies up for sale. The local media have mentioned around 700 billion won ($580 million) to more than 1 trillion won ($830 million) for the combined stakes of 70.9% of Tailim Packaging and a 100% stake of Tailim Paper. 
Five companies including the Hansol Group (Hansol Paper), TPG, Bain Capital, Shining Paper (China), and Sae-a Trading have shown keen interests in acquiring Taelim Packaging and Tailim Paper. 
A key leading driver of the domestic packaging market is the rapid growth of e-commerce. According to the Korean logistics association, the online shopping market size in Korea increased from 54 trillion won in 2015 to 111 trillion won in 2018.
Tailim Packaging shares are up 193% from the end of 2017 and it appears that its share price has already reflected much of the M&amp;A premium. Therefore, there is actually a higher likelihood that Tailim Packaging shares underperform in the coming months as the company is actually acquired by one of the five companies mentioned in this report. 

Korea M&A Spotlight: Who Will Acquire Tailim Packaging & Tailim Paper?

Thematic (Sector/Industry)

We highlight 20 Korean companies that are seeking to find new owners through M&amp;As in 2019. Key sectors of M&amp;A in Korea in 2019 include consumer, financial, and industrial. Our analysis is based on the publicly available information. Among the major Korean chaebols, the Lotte Group is poised to make significant sales of its various finance related companies in 2019 including Lotte Insurance,Lotte Card, and Lotte Capital. <a href="https://www.smartkarma.com/entities/16050" target="_blank" data-smartkarma-citation="entities:16050:1">Lotte Holdings (004990 KS)</a> would be a key beneficiary of the continued strategic restructuring of various Lotte related companies. Active M&amp;As in the Korean E-Commerce sector - In 2018, some of the major completed M&amp;A deals (inbound) include Softbank's $2 billion investment in Coupang, Affinity Equity Partners and BRV's 1 trillion won investment in Shinsegae Group's SSG.com e-commerce business, L'Oréal's acquisition of Stylenanda, Woongjin Group &amp; STIC Investment's acquisition of <a href="https://www.smartkarma.com/entities/3022" target="_blank" data-smartkarma-citation="entities:3022:1">Coway Co Ltd (021240 KS)</a>, Shinhan Financial Group's acquisition of ING Life Insurance Korea, and Korea Kolmar's acquisition of CJ Healthcare. Some of the major completed M&amp;A deals (outbound) include the KCC Consortium's acquisition of Momentive (US), LG Electronics' acquisition of ZKW (Austria), and CJ Cheiljedang's purchase of Schwan's Inc. (US). <div class="content-highlight">Among the various M&amp;A sectors in Korea in 2019, we find financials and industrial sectors to be quite interesting.</div>

We highlight 20 Korean companies that are seeking to find new owners through M&amp;As in 2019. Key sectors of M&amp;A in Korea in 2019 include consumer, financial, and industrial. Our analysis is based on the publicly available information. Among the major Korean chaebols, the Lotte Group is poised to make significant sales of its various finance related companies in 2019 including Lotte Insurance,Lotte Card, and Lotte Capital. Lotte Holdings (004990 KS) would be a key beneficiary of the continued strategic restructuring of various Lotte related companies. Active M&amp;As in the Korean E-Commerce sector - In 2018, some of the major completed M&amp;A deals (inbound) include Softbank's $2 billion investment in Coupang, Affinity Equity Partners and BRV's 1 trillion won investment in Shinsegae Group's SSG.com e-commerce business, L'Oréal's acquisition of Stylenanda, Woongjin Group &amp; STIC Investment's acquisition of Coway Co Ltd (021240 KS), Shinhan Financial Group's acquisition of ING Life Insurance Korea, and Korea Kolmar's acquisition of CJ Healthcare. Some of the major completed M&amp;A deals (outbound) include the KCC Consortium's acquisition of Momentive (US), LG Electronics' acquisition of ZKW (Austria), and CJ Cheiljedang's purchase of Schwan's Inc. (US). Among the various M&amp;A sectors in Korea in 2019, we find financials and industrial sectors to be quite interesting.

2019 Korea M&A Market Outlook - What’s For Sale?

South Korea

Tailim Packaging Industrial Co., Ltd. develops, manufactures, and sells packaging materials, such as corrugated boards and corrugated boxes. The Company supplies its products primarily to electronics and confectionery industries.

Tailim Packaging Ind (011280 KS)

Tailim Paper IPO Preview

Tailim Paper is the number one company in Korea specializing in the production of corrugated cardboard. Tailim Paper is getting ready to complete...

Douglas Kim

Korea M&A Spotlight: Who Will Acquire Tailim Packaging & Tailim Paper?

Tailim Packaging Ind (011280 KS) and Tailim Paper which have been up for sale are in the last stages of the M&A process. Tailim Packaging is...

Douglas Kim

2019 Korea M&A Market Outlook - What’s For Sale?

We highlight 20 Korean companies that are seeking to find new owners through M&As in 2019. Key sectors of M&A in Korea in 2019...

Douglas Kim