In today’s briefing:
- Holdco NAV Discount Compression Play on Korea’s Next Policy Narrative: Mandatory Tender Offers
- Shibaura Electronics (6957 JP): Signed, Sealed, Delivered as Yageo Secures FEFTA Approval
- Alipay: Issuing EB Worth 627 Billion Won Backed By Its Shares in Kakao Pay [A Quasi Block Deal Sale]
- Mixue (2097 HK): Lock-Up Expiry. After Doubling Post-IPO, Is the Fizz Running Out?
- ZEEKR (ZK US): Widening Scrip Spread Ahead Of Geely EGM Vote
- Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (July and August 2025)
Holdco NAV Discount Compression Play on Korea’s Next Policy Narrative: Mandatory Tender Offers
- Korean equities are stalled; macro catalysts are absent. Street focus shifts from treasury share cancellations to next year’s mandatory tender offers, now seen as the top policy driver.
- Pre-MTO trades focus on holding companies with wide NAV discounts or low controlling stakes, front-running policy-driven re-ratings before minority shareholders capture control premiums.
- Focus on 32 Korean holding companies >KRW 500B; those with wide NAV discounts and lighter controlling stakes—SK’s holding companies, Samsung C&T, Hanwha, LG, LS—are prime re-rating plays.
Shibaura Electronics (6957 JP): Signed, Sealed, Delivered as Yageo Secures FEFTA Approval
- Yageo Corporation (2327 TT) has finally secured FEFTA approval for its JPY7,130 offer for Shibaura Electronics (6957 JP). The close of the tender offer has been extended to 18 September.
- The Board has opposed the Yageo offer due to synergies, dis-synergies and cultural differences. However, on 29 August, the Board’s update suggested a possible pathway to recommend Yageo’s offer.
- Despite Minebea Mitsumi (6479 JP)’s tendency to go against its declarations and increase its offer on several occasions, this time it is different. Minebea is likely to exit.
Alipay: Issuing EB Worth 627 Billion Won Backed By Its Shares in Kakao Pay [A Quasi Block Deal Sale]
- Alipay (second largest shareholder of Kakaopay (377300 KS)) is issuing an overseas exchangeable bonds (EB) worth 627 billion won (backed by its shares in Kakao Pay).
- The exchange price of the EB is 54,744 won (4.5% discount to current price). Total amount of EB issue is 627 billion won ($450 million).
- This deal is basically a quasi-block deal. Alipay is trying to unload some of its stake in Kakao Pay to improve its finances.
Mixue (2097 HK): Lock-Up Expiry. After Doubling Post-IPO, Is the Fizz Running Out?
- The expiry of cornerstone investors’ lock-up today modestly increases Mixue Group (2097 HK)’s free float, which still remains below 10%.
- Mixue’s 1H2025 results show limited overseas scale-up, with growth driven entirely by the domestic market, raising concerns over long-term growth prospects from new markets.
- At 22x forward earnings, Mixue trades at a premium to HK-listed F&B peers, reflecting market optimism for above-consensus growth.
ZEEKR (ZK US): Widening Scrip Spread Ahead Of Geely EGM Vote
- On the 15th July, Geely Auto (175 HK), China’s second-largest carmaker, firmed a cash or scrip Offer for 62.8%-held ZEEKR (ZK US), a premium Chinese electric vehicle manufacturer
- ZEEKR has traded through the cash terms US$26.87/ADS from the onset; but at a discount to the scrip terms. The scrip spread has widened recently.
- The Offer is low-balled. However, Geely’s stake plus Li Shufu (founder)’s 10.61% holdings push the Offer through. Geely’s EGM is this Friday (7th July). Li (41.34%) is required to abstain.
Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (July and August 2025)
- In this insight, we discuss the alpha generation through companies that announced share buybacks in the Korean stock market in July and August 2025.
- We provide a list of 29 companies in the Korean stock market that have announced share buyback programs in July and August 2025.
- There were three companies with more than 1 trillion won in market cap that announced share buybacks in the past two months with at least 1% of outstanding shares.
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