Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Studio Dragon Block Deal Worth 170 Billion Won

Studio Dragon Placement - Long Awaited Selldown by CJ ENM

CJ ENM Selling 10-20% of Studio Dragon Stake: Strong Sentimental Booster for Both Stocks

CJ E&M: (Parasite = Oscar?) A Turnaround Play After Six Years of Pain

Equity Capital Markets

CJ ENM announces a well-expected stake sale for its cash-cow subsidiary, Studio Dragon. It put out 2.25M shares, which is 8% of the SO. The discount is generous at 7~9% to the last close (₩81,100). The deal value amounts to ₩166~170bil.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/126/824/original/1.png?1586211006" class="editor-image img-responsive" data-smartkarma-image-id="126824"></figure>The offered discount is 6~8% to the 1W VWAP. But the cut is pretty slim to the 1M VWAP. To the 6M VWAP, the discount is 4~6%.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/126/806/original/2.png?1586208634" class="editor-image img-responsive" data-smartkarma-image-id="126806"></figure><figure class="editor-figure mceNonEditable">The offered volume (8% of the SO) is indeed huge. To the 1W ADV, it is more than ten-folds. To the 6M ADV, it is like 15 times more.</figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/126/807/original/3.png?1586208642" class="editor-image img-responsive" data-smartkarma-image-id="126807"></figure>

CJ ENM announces a well-expected stake sale for its cash-cow subsidiary, Studio Dragon. It put out 2.25M shares, which is 8% of the SO. The discount is generous at 7~9% to the last close (₩81,100). The deal value amounts to ₩166~170bil.The offered discount is 6~8% to the 1W VWAP. But the cut is pretty slim to the 1M VWAP. To the 6M VWAP, the discount is 4~6%.The offered volume (8% of the SO) is indeed huge. To the 1W ADV, it is more than ten-folds. To the 6M ADV, it is like 15 times more.

Studio Dragon Block Deals: Details & Noteworthy Aspects