In today’s briefing:
- Interpreting Kumho Petro Chemical’s Unexpected Move to Cancel Treasury Shares
- Shinhan Financial Group Placement – Recent Selldowns Have Held up Since, Momentum Is Strong as Well
- Kumho Petrochemical – A Significant Shares Cancellation Announcement
- Block Deal Sale of About 400 Billion Won of Shinhan Financial by EQT Partners
- Angel Robotics: IPO Preview
Interpreting Kumho Petro Chemical’s Unexpected Move to Cancel Treasury Shares
- Kumho Petro Chemical (011780 KS) intends to retire 50% of its common shares, totaling 2,624,417 shares, starting from the 2024 fiscal year until the 2026 fiscal year.
- With the annual general meeting nearing, NPS hasn’t revealed its support, causing unease for Park Chan-gu. Considering NPS’s obligation to the Value-Up policy, cancellation seems inevitable for Park Chan-gu.
- Whether the battle persists hinges on NPS’s stance. If NPS backs Park Chan-gu, their stake surpassing 25% could deter the opposition’s financial strength. Conversely, NPS’s neutrality could escalate the battle.
Shinhan Financial Group Placement – Recent Selldowns Have Held up Since, Momentum Is Strong as Well
- EQT (EQT SS) , via Supreme, is looking to raise US$311m from selling its stake in Shinhan Financial (055550 KS).
- Momentum on the stock has been strong over the past few months, and the recent selldowns in the stock have held up by the end of the week.
- The share sale here will be a cleanup one, and a small one to digest at just 5.3 days of ADV.
Kumho Petrochemical – A Significant Shares Cancellation Announcement
- After the market close on 6 May, Kumho Petrochem announced a significant shares cancellation program which is likely to have a positive impact on its share price.
- The company announced that it will cancel 430 billion won worth of its common shares in the next three years, representing nearly 10.5% of its market cap.
- Park Chul Wan, nephew of Kumho Petrochem Chairman Park Chan Koo, has been very vocal about the need for Kumho Petrochem to improve its corporate governance in past several years.
Block Deal Sale of About 400 Billion Won of Shinhan Financial by EQT Partners
- EQT Partners announced that it is selling all of its remaining shares in Shinhan Financial for about 400 billion won in a block deal sale.
- The block deal sale price range is expected to be 43,776 won to 44,688 won, representing 2% to 4% discount to the closing price on 6 March (45,600 won).
- We would take the deal. The block deal discount is reasonable and Shinhan Financial continues to have attractive valuations and dividend yield despite recent share price appreciation.
Angel Robotics: IPO Preview
- Angel Robotics is getting ready to complete its IPO in KOSDAQ in March. The IPO price range is from 11,000 won to 15,000 won.
- The IPO offering amount is from 17.6 billion won to 24 billion won. At the IPO price range, the company’s valuation ranges from 154 billion won to 210 billion won.
- Angel Robotics is likely to be compared to Doosan Robotics and Rainbow Robotics.
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