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>Samsung SDI's share price experienced sharp volatility yesterday. After the market closed on Wednesday, a local media outlet reported that Samsung SDI plans to spin out the battery business division. As a result, the share price of Samsung SDI fell more than 6% as soon as the market opened yesterday. Then, at 2:13 pm, Samsung SDI issued a public notice denying this report. So, the share price reduced the decline to some extent, but it ended with a drop of more than 3%.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/299/original/1.png?1631832824" class="editor-image img-responsive" data-smartkarma-image-id="230299"></figure></section><p><a href="https://engkind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptNo=20210916000166&amp;docno=&amp;formProcsCd=070&amp;language=english" target="_blank" rel="noopener">Below is the public notice filed by Samsung SDI to deny the spinout report (KRX KIND).</a></p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/300/original/2.png?1631832874" class="editor-image img-responsive" data-smartkarma-image-id="230300"></figure></section><hr><div class="content-highlight"><p><strong>The local media that reported this is a newspaper called The Elec. Although it is not a first-tier press, it specializes in the local tech sector, and its articles are highly reliable.</strong></p></div><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/301/original/3.png?1631833019" class="editor-image img-responsive" data-smartkarma-image-id="230301"></figure></section><p><a href="http://www.thelec.kr/news/articleView.html?idxno=14352" target="_blank" rel="noopener">Here is the link to the news article.</a> (English translation isn't available, but Google Translate will do the job nicely.)</p><p><strong>The main points of the article in this newspaper are as follows.</strong></p><div class="content-highlight"><ul>
<li><strong>Samsung SDI's key executives recently had a meeting to discuss the spin-off of the energy solution division responsible for the battery business. It is to attract investment in the battery business.</strong></li>
<li><strong>It is the first time within Samsung SDI that top management has discussed the spin-off of the battery business. However, a specific plan and schedule have not been decided yet.</strong></li>
<li><strong>Samsung SDI's management also discussed the sale of the electronic materials business, which accounts for about 20% of total sales, as another way to raise funds for investment.</strong></li>
</ul></div>

Samsung SDI's share price experienced sharp volatility yesterday. After the market closed on Wednesday, a local media outlet reported that Samsung SDI plans to spin out the battery business division. As a result, the share price of Samsung SDI fell more than 6% as soon as the market opened yesterday. Then, at 2:13 pm, Samsung SDI issued a public notice denying this report. So, the share price reduced the decline to some extent, but it ended with a drop of more than 3%.Below is the public notice filed by Samsung SDI to deny the spinout report (KRX KIND).The local media that reported this is a newspaper called The Elec. Although it is not a first-tier press, it specializes in the local tech sector, and its articles are highly reliable.Here is the link to the news article. (English translation isn't available, but Google Translate will do the job nicely.)The main points of the article in this newspaper are as follows.
Samsung SDI's key executives recently had a meeting to discuss the spin-off of the energy solution division responsible for the battery business. It is to attract investment in the battery business.
It is the first time within Samsung SDI that top management has discussed the spin-off of the battery business. However, a specific plan and schedule have not been decided yet.
Samsung SDI's management also discussed the sale of the electronic materials business, which accounts for about 20% of total sales, as another way to raise funds for investment.


Time to Short Samsung SDI on Inevitable ECO of Battery Unit or Massive Rights Offer