In today’s briefing:
- VIOL (335890 KS): VIG Partners’ Tender Offer And DMS’ Strategic Exit
- Samsung F&M (000815 KS) Vs. Woori (316140 KS): No Mean Reversion (Yet), Time to Reassess the Pair
VIOL (335890 KS): VIG Partners’ Tender Offer And DMS’ Strategic Exit
- VIG Partners, a PE-outfit, is seeking to delist VIOL (335890 KS), an aesthetic medical devices manufacturer, whose major shareholder, DMS (068790 KS), faces allegations of unfair internal transactions.
- VIG first acquired 7% of DMS (068790 KS)’s 34.76% controlling stake in VIOL, following which, DMS contributed the remaining 27.76% in-kind to VIG’s SPV at a valuation of ₩12,500/share.
- VIG’s SPV’s tender offer launched on 18th June, also at ₩12,500/share, and runs until the 7th July 7. The Offer is conditional on a minimum acceptance threshold of 20.76%.
Samsung F&M (000815 KS) Vs. Woori (316140 KS): No Mean Reversion (Yet), Time to Reassess the Pair
- Context: This article provides an update on a previously identified pair trading opportunity between Samsung Fire & Marine Insuranc (000815 KS) and Woori Financial Group (316140 KS).
- Key Insights: The pair has not mean-reverted. This Insight discusses the use of a Stop Loss in a statistical pair trading context and why one might be considered at this point.
- Why Read It: For investors interested in quantitative strategies, this article demonstrates some of the mechanics of statistical arbitrage and which indicators can be used to decide on exiting a position.
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