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

Korea Small Cap Gem #59: Shinsegae I&C [10 Trillion Won Investment in AI Data Center in Korea]

Lee Myung-Hee Transfers All of Her 10.2% Stake In Shinsegae to Her Daughter Chung Yoo-Kyung

E-Mart: A Stock Swap with Shinsegae Food for a Final Delisting

Shinsegae I&C - The Next Tender Offer Target by E-Mart?

Douglas Research Advisory

Event-Driven

<ul>
<li>On 11 June, it was reported that the Shinsegae Group plans to acquire entire remaining stake in SSG.com held by financial investors (Olympus No 1 Co.) for 1.3 trillion won.</li>
<li>I am turning Negative on Shinsegae. There are three major reasons. First, I think valuations are unattractive. Second, I think the company is overpaying for the remaining stake in SSG.com. </li>
<li>Third, although the company has been one of the beneficiaries of the stock market wealth effect in the past year, the sustainability of continued booming stock market remains suspect.  </li>
</ul>


On 11 June, it was reported that the Shinsegae Group plans to acquire entire remaining stake in SSG.com held by financial investors (Olympus No 1 Co.) for 1.3 trillion won.
I am turning Negative on Shinsegae. There are three major reasons. First, I think valuations are unattractive. Second, I think the company is overpaying for the remaining stake in SSG.com. 
Third, although the company has been one of the beneficiaries of the stock market wealth effect in the past year, the sustainability of continued booming stock market remains suspect.  


Shinsegae Information & Communication Co (035510 KS)

Shinsegae Group to Acquire Entire Remaining Stake in SSG.com for 1.3 Trillion Won