Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

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Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<p>SK Chemicals will spin out the electricity and steam (utility) supply business unit through a physical division, which means the newly created entity will be SK Chemicals' wholly-owned subsidiary. The name of the subsidiary is SK Multi-Utility Co., Ltd. (tentative name).</p><div class="content-highlight"><p><strong>This announcement came out at 4:30 pm after the market close today.</strong></p></div><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/229/531/original/Screen+Shot+2021-09-13+at+8.19.49+AM.png?1631536475" class="editor-image img-responsive" data-smartkarma-image-id="229531"></figure></section><p>SK Multi-Utility has been producing the energy necessary for plant operation at the SK Chemicals Ulsan plant. It<span> has been supplying the energy needed for the Ulsan plant and selling the surplus energy to SK chemicals' affiliates. Last year, the division's sales were ₩37.3B. </span>If the spin-off is approved at the SK Chemicals extraordinary general meeting held on October 25, SK multi-utility will be officially launched on December 1.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/229/550/original/Screen+Shot+2021-09-13+at+9.04.36+AM.png?1631538429" class="editor-image img-responsive" data-smartkarma-image-id="229550"></figure></section><p><strong>Then, the closing date of the shareholder register for the general meeting was set as September 28.</strong></p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/229/552/original/Screen+Shot+2021-09-13+at+9.03.31+AM.png?1631538441" class="editor-image img-responsive" data-smartkarma-image-id="229552"></figure></section><p>In addition, SK Chemicals announced that after this split, SK Multi-Utility would invest ₩428.1B in facilities to convert the current business structure to an eco-friendly business structure. This investment will begin in May next year.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/229/553/original/Screen+Shot+2021-09-13+at+9.09.51+AM.png?1631538608" class="editor-image img-responsive" data-smartkarma-image-id="229553"></figure></section>

SK Chemicals will spin out the electricity and steam (utility) supply business unit through a physical division, which means the newly created entity will be SK Chemicals' wholly-owned subsidiary. The name of the subsidiary is SK Multi-Utility Co., Ltd. (tentative name).This announcement came out at 4:30 pm after the market close today.SK Multi-Utility has been producing the energy necessary for plant operation at the SK Chemicals Ulsan plant. It has been supplying the energy needed for the Ulsan plant and selling the surplus energy to SK chemicals' affiliates. Last year, the division's sales were ₩37.3B. If the spin-off is approved at the SK Chemicals extraordinary general meeting held on October 25, SK multi-utility will be officially launched on December 1.Then, the closing date of the shareholder register for the general meeting was set as September 28.In addition, SK Chemicals announced that after this split, SK Multi-Utility would invest ₩428.1B in facilities to convert the current business structure to an eco-friendly business structure. This investment will begin in May next year.

SK Chemicals' Timely Spinoff Announcement Amid Metrica's Activist Move: What to Make of It