Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Today's FSS briefing warned Choi, favoring MBK. It looks likely Korea Zinc will retract the rights offering, or we might see a rare showdown with the FSS.</li>
<li>Will Korea Zinc's stock rally? Uncertain. The recent price jump was driven mainly by short squeezes. Volatility seems unlikely now with many shorts cleared out.</li>
<li>We should watch the shareholder vote, as open market buying continues, keeping Korea Zinc's stock tight. We should expect potential swings due to passive outflows.</li>
</ul>


Today's FSS briefing warned Choi, favoring MBK. It looks likely Korea Zinc will retract the rights offering, or we might see a rare showdown with the FSS.
Will Korea Zinc's stock rally? Uncertain. The recent price jump was driven mainly by short squeezes. Volatility seems unlikely now with many shorts cleared out.
We should watch the shareholder vote, as open market buying continues, keeping Korea Zinc's stock tight. We should expect potential swings due to passive outflows.


FSS Briefing on Korea Zinc: Likely to Retract Rights Offering; Set up Trades for Passive Outflows

<ul>
<li>A unique clause caps any single subscriber, including related parties, to 3% of the total issuance, or 111,979 shares, limiting MBK and Choi’s camp.</li>
<li>While there are legal risks regarding breach of duty, the capital raise is solid and unlikely to face immediate shutdown despite potential court challenges from MBK.</li>
<li>There are trading opportunities as 20% of shares are newly issued, potentially opening the door for MBK's tender offer and attracting new shareholders, including arb hunters.</li>
</ul>


A unique clause caps any single subscriber, including related parties, to 3% of the total issuance, or 111,979 shares, limiting MBK and Choi’s camp.
While there are legal risks regarding breach of duty, the capital raise is solid and unlikely to face immediate shutdown despite potential court challenges from MBK.
There are trading opportunities as 20% of shares are newly issued, potentially opening the door for MBK's tender offer and attracting new shareholders, including arb hunters.


Breaking Down the Details of Korea Zinc’s Shocking Capital Raise

<ul>
<li>There's still 13.67% of neutral votes up for grabs, sparking market chatter about a fresh tender. But Choi is focusing on reviving voting rights for treasury shares.</li>
<li>MBK stated today that Korea Zinc's 9.85% treasury shares might not be canceled and could be sold to employee stock ownership plans (ESOPs).</li>
<li>MBK may ramp up open market buying sooner and more aggressively than expected, likely already impacting Korea Zinc's stock price starting today.</li>
</ul>


There's still 13.67% of neutral votes up for grabs, sparking market chatter about a fresh tender. But Choi is focusing on reviving voting rights for treasury shares.
MBK stated today that Korea Zinc's 9.85% treasury shares might not be canceled and could be sold to employee stock ownership plans (ESOPs).
MBK may ramp up open market buying sooner and more aggressively than expected, likely already impacting Korea Zinc's stock price starting today.


Korea Zinc's Buyback Results and Price Actions from Potential Sale of 9.85% Treasury to ESOP

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/korea-zinc-co-ltd" target="_blank" data-smartkarma-citation="entities:17944:1" rel="noopener">Korea Zinc (010130 KS)</a>, in tandem with Bain Capital, <a href="https://englishdart.fss.or.kr/dsbh001/main.do?rcpNo=20241028000007" target="_blank" rel="noopener">purchased 11.26% of KZ</a>, lifting Choi Yoon-beom's stake, together with friendly hands, to ~35.4%, compared to MBK Partners-Young Poong consortium's 38.47%. </li>
<li>Preceding my comments on KZ and <a href="https://www.smartkarma.com/entities/young-poong-precision-corp" target="_blank" data-smartkarma-citation="entities:16188:1" rel="noopener">Young Poong Precision (036560 KS)</a> 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>



Korea Zinc (010130 KS), in tandem with Bain Capital, purchased 11.26% of KZ, lifting Choi Yoon-beom's stake, together with friendly hands, to ~35.4%, compared to MBK Partners-Young Poong consortium's 38.47%. 
Preceding my comments on KZ and Young Poong Precision (036560 KS) 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: Korea Zinc's Public Tender & Expected EGM

<ul>
<li>I tally 42 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>One new deals discussed this week: <a href="https://www.smartkarma.com/entities/cemex-holdings-philippines" target="_blank" data-smartkarma-citation="entities:22700:1" rel="noopener">Cemex Holdings Philippines (CHP PM)</a> low-balled MTO.</li>
<li>Key updates took place on: <a href="https://www.smartkarma.com/entities/fuji-soft-inc" target="_blank" data-smartkarma-citation="entities:17504:1" rel="noopener">Fuji Soft Inc (9749 JP)</a>, <a href="https://www.smartkarma.com/entities/shinko-electric-industries" target="_blank" data-smartkarma-citation="entities:15066:1" rel="noopener">Shinko Electric Industries (6967 JP)</a>, <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC Holdings (906 HK)</a>, <a href="https://www.smartkarma.com/entities/mphb-capital-bhd" target="_blank" data-smartkarma-citation="entities:8540:1" rel="noopener">MPHB Capital (MPHB MK)</a>, and <a href="https://www.smartkarma.com/entities/dyna-mac-holdings-ltd" target="_blank" data-smartkarma-citation="entities:16153:1" rel="noopener">Dyna Mac Holdings (DMHL SP)</a>.</li>
</ul>


I tally 42 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deals discussed this week: Cemex Holdings Philippines (CHP PM) low-balled MTO.
Key updates took place on: Fuji Soft Inc (9749 JP), Shinko Electric Industries (6967 JP), CPMC Holdings (906 HK), MPHB Capital (MPHB MK), and Dyna Mac Holdings (DMHL SP).


(Mostly) Asia-Pac M&A: CEMEX, Fuji Soft, Shinko Electric, CPMC, MPHB Capital, Dyna Mac

South Korea

Young Poong Precision Corporation manufactures centrifugal pumps, valves, and anti-corrosion equipment.  The Company also manufactures mold products, and retails various machine parts and motors.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Young Poong Precision (036560 KS)

FSS Briefing on Korea Zinc: Likely to Retract Rights Offering; Set up Trades for Passive Outflows

This post covers today’s FSS briefing on the Korea Zinc rights offering and explores the reasons behind the likely cancellation. It also highlights...

Sanghyun Park

Breaking Down the Details of Korea Zinc’s Shocking Capital Raise

This post dives into the details of Korea Zinc’s shocking capital raise announced this morning and breaks down what it all means from a trading...

Sanghyun Park

Korea Zinc's Buyback Results and Price Actions from Potential Sale of 9.85% Treasury to ESOP

This post covers Korea Zinc's buyback tender results and touches on stock price actions likely driven by the potential sale of the 9.85% treasury...

Sanghyun Park

StubWorld: Korea Zinc's Public Tender & Expected EGM

YPP is "cheap" on a implied stub angle; however YPP is no longer in play. KZ gained a staggering 46% after the close of Choi/Bain's tender offer. I...

David Blennerhassett

(Mostly) Asia-Pac M&A: CEMEX, Fuji Soft, Shinko Electric, CPMC, MPHB Capital, Dyna Mac

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)