In today’s briefing:
- SKT Foreign Room Heating Up — Time to Front-Run?
- Pacific Industrial (7250 JP): MBO at JPY2,050 Is Light but Likely Done
SKT Foreign Room Heating Up — Time to Front-Run?
- SKT’s foreign room jumped from 12% to 20% in two months; if the pace holds, 25% is in play by next review, with ongoing foreign outflows from the SIM leak.
- FOL shifts from foreign room swings have been a classic long-short play in Korea telcos — and the current setup looks similar, with most SIM leak risks already priced in.
- If SKT’s foreign room nears 25%, expect front-running and passive flow imbalances to kick in — a familiar long-short setup that’s historically moved the telco tape early.
Pacific Industrial (7250 JP): MBO at JPY2,050 Is Light but Likely Done
- Pacific Industrial (7250 JP) has recommended an MBO at JPY2,050, a 16.4% premium to the last close price and a 40.3% premium to the undisturbed price.
- While the offer is below book value (P/B of 0.71x), it represents an all-time high and is above the mid-point of the IFA DCF valuation range.
- Pacific Industrial has no history of activism. Therefore, the offer will succeed at current terms unless there is vocal opposition or an activist becomes a substantial shareholder.
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