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

SM Entertainment: EXO's Contract Controversy and Repeated Working Condition Issues

SM Entertainment: Kakao's Tender Offer Proration Analysis

HYBE Gives Up the M&A Fight for SM Entertainment: Impact on Kakao's Tender Offer

Kakao's Tender Offer to SM Ent Shareholders: Key Details of Disclosure Filed This Morning

The Blockchain Delusion. A (Mostly) Bearish Investment Thesis.

Clepsydra Capital

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

Event-Driven

<ul>
<li>The target volume is 47.6% of the nominally estimated tendering pool size. It may go up due to retail investors' typically low participation in tendering.</li>
<li>Other factors MAY OFFSET this. Most notable is the tendering possibility of HYBE (18.45%) and Lee Soo-man (4.96%). Combining these, the allocation rate will likely be between 50% and 60%.</li>
<li>Using this 50-60% band as a reference point, we should assess the risk of mismatching between the degree of post-tendering price correction and our loss buffer range for non-tendered shares.</li>
</ul>


The target volume is 47.6% of the nominally estimated tendering pool size. It may go up due to retail investors' typically low participation in tendering.
Other factors MAY OFFSET this. Most notable is the tendering possibility of HYBE (18.45%) and Lee Soo-man (4.96%). Combining these, the allocation rate will likely be between 50% and 60%.
Using this 50-60% band as a reference point, we should assess the risk of mismatching between the degree of post-tendering price correction and our loss buffer range for non-tendered shares.


SM Ent Tendering P&L & Allocation Risk for a 30% Spread Opening

S.M.Entertainment Co

SM Ent Tendering P&L & Allocation Risk for a 30% Spread Opening