Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Daeduck Merger Event Back in Action: Spread Is at a 5~6% Level

Daeduck Merger Update: Stock Swap Spread Is Still at 4%

Daeduck Electronics Announces the Establishment of a Holding Company Structure

Daeduck Merger Event - Aug 9 Local Institutional Trades Review

Daeduck Merger Event - Spread Is Currently at 4+%, Why Not Enjoying It

Daeduck Electronics Announces A Merger with Daeduck GDS

Event-Driven

<ul>
<li>Some local public offering funds have just continued arb trades on the Daeduck duo throughout last week at a ratio of 1.54173, which is pretty much the same as the swap ratio of 1.60727.</li>
<li>Swap yield has been kept at above 4% throughout last week. Of course, this isn't really glamorous, but it seems enough to trigger these (several) local public offering funds to act on it.</li>
<li>At this point, it seems that both won't have any hard time getting shareholder approval on Oct 30. Similarly, there is a higher chance that the total cost of stock purchase will be kept under ₩85bil.</li>
<li>My advise is clear and straightforward. If you think you can be happy with a 4% spread, then you shouldn't miss out on this opportunity.</li>
</ul>


Some local public offering funds have just continued arb trades on the Daeduck duo throughout last week at a ratio of 1.54173, which is pretty much the same as the swap ratio of 1.60727.
Swap yield has been kept at above 4% throughout last week. Of course, this isn't really glamorous, but it seems enough to trigger these (several) local public offering funds to act on it.
At this point, it seems that both won't have any hard time getting shareholder approval on Oct 30. Similarly, there is a higher chance that the total cost of stock purchase will be kept under ₩85bil.
My advise is clear and straightforward. If you think you can be happy with a 4% spread, then you shouldn't miss out on this opportunity.


Daeduckとの合併は依然として4%のスプレッドを維持、現地ファンドはアービトラージを継続（議決権/株式購入コスト予測）