Daily Brief Event-Driven: HD Merger: Overblown Policy Risk Creates a Convergence Play Opportunity and more

In today’s briefing:

HD Merger: Overblown Policy Risk Creates a Convergence Play Opportunity
Makus: A Textbook Case Study of How Improving Shareholder Value Leads to Surging Share Price
M&A of Hyundai Hyms – Who Will Buy Controlling Stake?

HD Merger: Overblown Policy Risk Creates a Convergence Play Opportunity

NAV sets the floor under the proposed bill. That’d cut the swap ratio from 1:0.162 to 1:0.128 — meaning Infracore holders get fewer CE shares than under market pricing.
Unlike the Doosan deal, this one’s unlikely to get walked back. With wide spreads and HD setting a 10% SO cap, the dislocation looks tradable despite appraisal right overhang.
Top holders/NPS hold ~50%, local instos 20%, foreigners 15% and retail the rest. Sentiment’s cautious but not hostile; appraisal risk looks manageable, making this spread a potential convergence play.

Makus Inc (093520 KS) is a textbook case study in Korea of how improving shareholder value leads to surging share price. Its example is simple and beautiful.
Makus announced that it will cancel a total of 6 million treasury shares (37% of outstanding shares) in the next three years until 2027 to increase shareholder value.
Applying a 15x P/E on EPS of 2,788 won (2027E) results in implied target price of 41,820 won per share, which would be a 67% further upside from current levels.

The management ownership stake of Hyundai Hyms is up for sale. J&P Private Equity firm which owns 52.88% stake in Hyundai Hyms has sent out teaser letters to potential buyers.
Including a management premium ranging from 30% to 50%, the potential acquisition price (including management premium) could be worth about 481 billion won to 555 billion won.
Since the second largest shareholder, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) (20.89% stake), has the right of first negotiation, the selling side must first negotiate with HD KSOE.

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