In today’s briefing:
- Fresh Intel Just in on KRX’s L2 Warning Revamp
- Sale of 1.1 Trillion Won Worth of Hanwha Energy by Kim Dong-Won and Kim Dong-Sun
- Vedanta’s Radical Split: 6 New Titans for a Post-Demerger World
- Comcast Spin-off (Versant) Spin-off Deep Dive
- Liquid Universe of European Ordinary and Preferred Shares: December’25 Report
- Shinsegae I&C – The Next Tender Offer Target by E-Mart?
- Zhejiang Sanhua Intelligent Controls IPO Lockup – US$800m Cornerstone Release
Fresh Intel Just in on KRX’s L2 Warning Revamp
- “Effective immediately” matters for L2 exit timing and re-flag risk; KRX confirmed year-end announcement with instant rollout, making year-end the key flow inflection if big L2 names get exempted.
- Large caps (₩10tn+ market cap) pulled from market-warning universe, with L2 tagging now factoring relative outperformance, not just absolute price gains, to curb overuse.
- Of 33 L2 names, five KOSPI blue chips see re-flag risk drop after their mandatory 10-day lockup; near-term trades focus on timing these expiries for relief rallies and flow resets.
Sale of 1.1 Trillion Won Worth of Hanwha Energy by Kim Dong-Won and Kim Dong-Sun
- Kim Dong-Won and Kim Dong-Sun decided to sell nearly 1.1 trillion won (US$750 million) worth of Hanwha Energy.
- Through this sale, Hanwha Energy’s value is estimated at approximately 5.5 trillion won.
- This large scale stake sale could result in negative sentiment/impact on Hanwha Corp and Hanwha Systems.
Vedanta’s Radical Split: 6 New Titans for a Post-Demerger World
- Vedanta Ltd (VEDL IN) will split into 5 independent listed entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel/Ferrous Materials, residual Vedanta Ltd (like zinc, silver).
- Existing shareholders will receive one share in each of the 4 demerged entities for every one share held in Vedanta Ltd (1:1 ratio).
- The Mumbai bench of NCLT approved Vedanta Ltd (VEDL IN) demerger plan on December 16 lead to streamline operations, improve management focus, and unlock shareholder value.
Comcast Spin-off (Versant) Spin-off Deep Dive
Comcast plans to spin off its cable networks business in early 2026, with regular-way trading expected to begin on January 6, 2026.
Versant generates meaningful adjusted EBITDA and free cash flow.
However, despite the cash generation, it is difficult to build conviction in the equity story.
Liquid Universe of European Ordinary and Preferred Shares: December’25 Report
- December spreads were technically noisy but structurally neutral: median unchanged, dispersion high, with year-end flows interrupting—but not invalidating—ongoing convergence across Europe’s dual-class universe.
- Marginal voting premia continue to erode where control is entrenched: Henkel, Grifols and Roche show further compression as governance risk fades and incremental voting rights lose economic relevance.
- Nordic anomalies remain unresolved: Handelsbanken’s >70% premium and SSAB’s anchored discount continue to reflect flow and structural frictions rather than voting economics, offering the clearest dispersion opportunities into 2026.
Shinsegae I&C – The Next Tender Offer Target by E-Mart?
- In the past two years, E Mart Inc (139480 KS) has announced two tender offers of its affiliates including Shinsegae E&C (September 2024) and Shinsegae Food (031440 KS) (December 2025).
- We believe the next target of a tender offer by E-Mart could be Shinsegae Information & Communication Co (035510 KS) in 2026/2027.
- We provide three main reasons why E-Mart may try to conduct a tender offer of Shinsegae I&C in 2026/2027.
Zhejiang Sanhua Intelligent Controls IPO Lockup – US$800m Cornerstone Release
- Zhejiang Sanhua Intelligent Controls (2050 HK), raised around US$1.4bn in its H-share listing. The lockup on its cornerstone investors is set to expire soon.
- ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
- In this note, we will talk about the lockup dynamics and possible placement.
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