Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Kakao Pay’s Unique Quick-Flip EB: Watch Hedges & Rolls for Trading Angle

Block Deal Sale of 2.2% of Kakao Pay by Alipay

Kakao Pay: Worsening Profit Margins Due to Heightened Competition

Douglas Research Advisory

Event-Driven

<ul>
<li>Alipay (second largest shareholder of Kakaopay (377300 KS)) is issuing an overseas exchangeable bonds (EB) worth 627 billion won (backed by its shares in Kakao Pay).</li>
<li>The exchange price of the EB is 54,744 won (4.5% discount to current price).  Total amount of EB issue is 627 billion won ($450 million). </li>
<li>This deal is basically a quasi-block deal. Alipay is trying to unload some of its stake in Kakao Pay to improve its finances.</li>
</ul>


Alipay (second largest shareholder of Kakaopay (377300 KS)) is issuing an overseas exchangeable bonds (EB) worth 627 billion won (backed by its shares in Kakao Pay).
The exchange price of the EB is 54,744 won (4.5% discount to current price).  Total amount of EB issue is 627 billion won ($450 million). 
This deal is basically a quasi-block deal. Alipay is trying to unload some of its stake in Kakao Pay to improve its finances.


Alipay: Issuing EB Worth 627 Billion Won Backed By Its Shares in Kakao Pay [A Quasi Block Deal Sale]