In today’s briefing:
- Woori Financials Placement – Almost a Clean-Up Although past Deals Haven’t Done Much
- Block Deal Sale of Woori Financial Group
- Sampyo Cement: Likely Exit from KOSDAQ150 & Move to KOSPI
Woori Financials Placement – Almost a Clean-Up Although past Deals Haven’t Done Much
- KDIC is looking to sell around half of its remaining stake in Woori Financial Group (WFG).
- This is almost a clean-up trade considering that KDIC had a stake of nearly 18% at the start of 2021 and will now be reduced to a less than 2%.
- In this note, we will run the deal through our ECM framework.
Block Deal Sale of Woori Financial Group
- After the market close today, it was announced that KDIC will sell its 1.81% stake of Woori Financial Group.
- The block deal price will range from 15,229 won to 15,700 won (0 to 3% discount) and we would take the deal even at little discount.
- Woori Financial Group’s share price continues to trade at deep valuation multiples as it is trading at P/B of 0.4x and P/E of 3.9x (using 2022 consensus earnings estimates).
Sampyo Cement: Likely Exit from KOSDAQ150 & Move to KOSPI
- Sampyo Cement which is currently included in KOSDAQ150 is likely to be removed from this index in the coming months as the company wants to move to KOSPI.
- If Sampyo Cement is excluded from KOSDAQ150, we estimate there could be about 9 billion won worth of passive funds which could exit the stock. ADTV is 1.6 billion won.
- Therefore, we believe Sampyo Cement’s shares could face further weakness in the next several months. It will hold an EGM to vote on the move to KOSPI on 4 July.
Before it’s here, it’s on Smartkarma
