Daily Brief Event-Driven: Fresh Policy Momentum Hitting Korea Tape: Trade Is Lining up Around 13 Holdcos with CVC Exposure and more

In today’s briefing:

Fresh Policy Momentum Hitting Korea Tape: Trade Is Lining up Around 13 Holdcos with CVC Exposure
Joy City (207 HK): 17th November Vote On COFCO’s Offer
Joy City Property (207 HK): Wide Spread Ahead of the 17 November Scheme Vote

Fresh Policy Momentum Hitting Korea Tape: Trade Is Lining up Around 13 Holdcos with CVC Exposure

Gov’t likely to ease CVC rules; street chatter sees high odds. Tied to KRW150tn Growth Fund push, with corporates lobbying—cleanest path to juice capital flow.
Holdcos at center of CVC‑easing; scrapping disclosure rule unlocks external capital. Street read: fast flip from control towers to re‑rating plays as real investment shops with growth portfolios.
KFTC flags 177 holdcos, 14 with CVCs (13 listed). Street sees momentum flows hitting these 13 names; play via basket/overweight, with Doosan, Hyosung, LX as preferred plays.

On the 31sr July, Chinese property play Joy City (207 HK) announced a Scheme buyback, @ $0.62/share (declared final), a 67.57% premium; but arguably a 158% premium to undisturbed.
Yes, this was a ~70% discount to NAV. However, Joy City had traded at P/B of 0.14x, on average, the past five years. Earnings have trended south in that timeframe.
The Scheme Document’s now out, with a Court Meeting on the 17th November and expected payment around the 4th December. The IFA (Somerley) says “fair & reasonable”. It probably is.

Joy City Property (207 HK)’s IFA opines that the share buyback by way of a scheme at HK$0.62 is fair and reasonable. The vote is on 17 November.
While the offer implies a P/B of 0.29x, it is reasonable compared to peer multiples and historical trading ranges. No disinterested shareholder holds a blocking stake.
Nevertheless, there remains vote risk and caution is warranted. At the current price and for a 4 December payment, the gross/annualised spread is 8.8%/103.6%.

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