In today’s briefing:
- HHI–Mipo Merger Swap: Deal Mechanics & Spread Play Opportunities
- A Merger Between HD Hyundai Heavy Industries and HD Hyundai Mipo
- Korean Air: A Major Rights Offering Capital Raise Likely In Next 1-2 Years
HHI–Mipo Merger Swap: Deal Mechanics & Spread Play Opportunities
- HHI–Mipo merger spread looks minimal, but today’s MASGA-driven pop signals momentum flows—likely to mean-revert toward appraisal rights once the theme dissipates.
- Froth lifted prices past fundamentals—once it unwinds, HHI–Mipo could diverge from swap ratio, creating the spread window where traders can get paid.
- This isn’t classic merger arb—it’s about fading a policy-fueled pop, riding the snapback toward appraisal baseline, with flow-driven swings creating short-term tactical arb setups.
A Merger Between HD Hyundai Heavy Industries and HD Hyundai Mipo
- It was announced today that HD Hyundai Heavy Industries will merge with HD Hyundai Mipo. The merger ratio between HD Hyundai Heavy Industries and HD Hyundai Mipo is 1:0.4059146.
- HD Korea Shipbuilding & Offshore Engineering (009540 KS) will own a 66.29% stake in the merged entity.
- HD KSOE is proceeding with this merger of its two major subsidiaries ahead of the full-scale launch of the MASGA (“Make America Shipbuilding Great Again”) project.
Korean Air: A Major Rights Offering Capital Raise Likely In Next 1-2 Years
- We believe a major rights offering capital raise is likely for Korean Air Lines (003490 KS) in the next 1-2 years.
- On 25 August, Korean Air announced a 70 trillion won investment plan in the United States. This plan is likely to have been pressured heavily by the Korean government.
- A big problem with this plan is Korean Air does not produce enough cash flow and its balance sheet is not strong enough to invest such huge amounts of capital.
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