In today’s briefing:
- Final Samsung Electronics Stake Sale: Overhang Risk, Control Optics, & Clean Pref Reversion Trade
- SHORT ESR Kendall Square REIT: Korea Logistics Oversupply & K-REIT Funding
Final Samsung Electronics Stake Sale: Overhang Risk, Control Optics, & Clean Pref Reversion Trade
- Near‑term flow looks muted: Shinhan likely drips ~0.3% SO stake into liquid tape, not a block. With ₩2tn daily turnover, market easily absorbs without price shock.
- Top‑holder stake dips 20.14→19.84% post‑sale, but ₩10tn buyback cancels ~1.5ppt float, restoring 20.14%. The 0.3% selldown’s pre‑calculated; no real trading juice, flow impact minimal.
- Inheritance‑tax overhang done, buyback cycle fading. Gov’t pressure plus family’s last selldown point to dividend ramp. Prefs at 23% discount vs 10% target set up clean reversion trade.
SHORT ESR Kendall Square REIT: Korea Logistics Oversupply & K-REIT Funding
- Despite having strong operational performances, we think ESR KS REIT is currently facing 2 headwinds, 1 structural issue and 1 cyclical issue
- Korea listed companies are generally suffering from under-valuation and excessive equity raise. The equity raises, which are done at discount to NAV, is value destructive
- In the physical market, we think the logistics market is facing oversupply issue, slow absorption and protected recovery.
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