Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Local Activist Fund Attacks Hyundai HS on Hanwha L&C Deal, But Market May React Differently

Value Partners Goes "Activist" On Hyundai Home Shopping

Event-Driven

<ul>
<li>For Hyundai Dept Store Group breaking up, two transactions must be carried out. The older brother owns a 12.67% stake in Greenfood. In contrast, Greenfood owns a 12.05% stake in Dept Store. these share holdings will have to be removed.</li>
<li>The older brother's 12.67% stake in Greenfood will likely be sold in block deals to third parties, whereas Greenfood's 12.05% stake in Dept Store will likely be sold to the older brother. As a result, Greenfood may face a negative sentiment mainly driven by stock overhang concern, whereas Dept Store has no such issue.</li>
<li>So, my trade idea that may seem plausible at least for the short-term during which this group breaking up issue ignited by the Hanwha L&amp;C acquisition is long <a href="https://www.smartkarma.com/entities/19098" target="_blank" data-smartkarma-citation="entities:19098:1">Hyundai Dept Store Co (069960 KS)</a> and short <a href="https://www.smartkarma.com/entities/19560" target="_blank" data-smartkarma-citation="entities:19560:1">Hyundai Greenfood (005440 KS)</a> until this breaking up based sentiment lasts.</li>
</ul>


For Hyundai Dept Store Group breaking up, two transactions must be carried out. The older brother owns a 12.67% stake in Greenfood. In contrast, Greenfood owns a 12.05% stake in Dept Store. these share holdings will have to be removed.
The older brother's 12.67% stake in Greenfood will likely be sold in block deals to third parties, whereas Greenfood's 12.05% stake in Dept Store will likely be sold to the older brother. As a result, Greenfood may face a negative sentiment mainly driven by stock overhang concern, whereas Dept Store has no such issue.
So, my trade idea that may seem plausible at least for the short-term during which this group breaking up issue ignited by the Hanwha L&amp;C acquisition is long Hyundai Dept Store Co (069960 KS) and short Hyundai Greenfood (005440 KS) until this breaking up based sentiment lasts.


Hyundai Home Shopping Network (057050 KS)

Hyundai Engineering & Construction (000720 KS)

HDC Hyundai Development Co-Engineering & Construction (294870 KS)

HDC Hyundai Development Co-Engineering & Construction

Hyundai HS Buying Hanwha L&C Creates Group Split Sentiment: LONG Dept Store & SHORT Greenfood