Daily Brief Event-Driven: EOFlow Tender Offer: Preconditions for Closure and more

In today’s briefing:

EOFlow Tender Offer: Preconditions for Closure, Cancellation Risk, & Targetable Allocation
ISC’s Tender Offer Possibility Is Decreasing, Indicating a Potential Shorting Opportunity

EOFlow Tender Offer: Preconditions for Closure, Cancellation Risk, & Targetable Allocation

The likelihood of the merger review not being approved appears to be low. Additionally, the purchase of only 3.8M additional shares is required, leading to a negligible cancellation risk.
It is particularly noteworthy that the offering price of ₩30,000, targeting minority shareholders, may be adjusted upward depending on future share price increases.
While there is a potential allocation risk, as Medtronic aims to delist the company, they are unlikely to lower the target quantity in the tender offer to a risky level.

The possibility of SKC securing additional shares other than the planned 40% through a tender offer seems low. This is a basis for the recent short position build-up in ISC.
ISC began to experience an influx of short selling, leading to it being designated as an overheated short-selling stock, and short selling was restricted for one day on the 26th.
We need to pay attention to the potential disappointment in the market, which could lead to a sustained downward correction in the stock price.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network