Daily Brief South Korea: Lotte Rental, Gabia Inc, Hanyang Eng and more

• The next policy swing is mandatory tender offers (MTO), with the gov’t + ruling party pushing for passage this session, likely alongside the mandatory treasury-share cancellation.
• 2022 FSS/FSC 50%+1 trigger scrapped; 25% stays. Ruling party favors 50%+ MTO, base case 100%, but pushback may reduce to 70–80%.
• MTOs tighten discounts, benefit minority holders; focus on local holding firms, PE-backed exits, and parent-driven M&A prospects.

• In this insight, we review the major tender offers of Korean companies in 2025. Some of the major M&A tender offers in 2025 include HMM, Kolon Mobility Group, and VIOL.
• The tender offers have mostly been profitable for the investors in these targeted companies (especially those shareholders who owned these shares prior to the tender offer announcement).
• What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week.

• Hanyang Eng is a key enabler of the high-tech industry, specializing in the construction of facilities for semiconductor and display manufacturers, which positions it to benefit from the ongoing global investment in chip production.
• The company demonstrates strong financial health, characterized by consistent revenue growth, robust profitability, and a strong dividend profile, making it an attractive value and income investment.
• While heavily exposed to the cyclical nature of the semiconductor industry, Hanyang Eng is diversifying its business into bio-pharmaceuticals, aerospace, and green energy, potentially mitigating long-term risks and opening new growth avenues.

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