Daily BriefsEvent-Driven

Event-Driven: SK IE Technology, Hanjin KAL Corp and more

In today’s briefing:

  • SK IE Technology IPO: Fast Index Entry Possibilities
  • Hanjin Kal Shorting Opportunity: Opposition Disbands, Loan Balance, & NAV Discount

SK IE Technology IPO: Fast Index Entry Possibilities

By Brian Freitas

SK ie technology (SKIET KS) is 90% owned by SK Innovation (096770 KS) and produces lithium ion battery separators (LiBS). The company was spun off from SK Innovation (096770 KS) in April 2019.

SK ie technology (SKIET KS) is looking to list on the Korea Stock Exchange Kospi Index (KOSPI INDEX) market. SK Innovation (096770 KS) will sell 12.834m shares in the IPO, and the company will issue 8.556m new shares. The offering price will be decided on 23 April based on institutional investor demand, and shares are expected to start trading on the KRX in the first half of May.

We see the stock as a high probability Fast Entry inclusion in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX). The listing day will determine if the stock gets Fast Entry into the index in June or December.

The Fast Entry into the MSCI Standard Index and the FTSE All-World index will depend on the lock up on institutional investor allocation. We see a very small possibility of the stock being included in the MSCI Standard index, while there is a slightly higher probability of the stock being included in the FTSE All-World index.

In this Insight, we take a look at the some of the IPO details and the possibility of the stock being included in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX), MSCI Standard and FTSE All World indices.


Hanjin Kal Shorting Opportunity: Opposition Disbands, Loan Balance, & NAV Discount

By Sanghyun Park

The three-party opposition, the KCGI (activist fund), Bando Group, and Cho Hyun-ah (the eldest sibling of the Hanjin owner family), ended their joint ownership of their stakes in Hanjin Kal.

The regulatory filings by all of the three parties were posted on DART last Thursday.

(Source: DART)

They signed the joint ownership agreement a year ago, and they appear to have agreed not to renew it.

Of course, it is no surprise. Ever since KDB came into the scene, the proxy fight must have been pretty much over. With the help of KDB, the Cho WT side now controls 47.41%, whereas the opposition remains at 40.40%.

The casting votes amount to 12.19%, but local retail has only about 4%. The other 8% are held by local institutions, many of which are pro-Cho WT.

Hanjin Kal proxy fightCho WTOppositionCasting votes
KDB10.66%
Cho WT5.82%
 – Jeongseok Inha AF (controlled by Cho WT)1.91%
 – Jeongseok LAF (controlled by Cho WT)0.96%
Cho Hyun-min5.78%
Lee Myung-hee4.74%
Other special affiliated persons0.84%
Delta Air Lines, Inc.13.31%
Korean Air ESOP (incl. self-ins. & CFA)3.39%
The KCGI (activist fund)17.54%
Bando17.15%
Cho Hyun-a5.71%
Other12.19%
– Total47.41%40.40%12.19%
Source: DART & FnGuide

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