Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Event-Driven

<ul>
<li>Hanil Holdings (003300 KS) targets a total 1,800,000 Hanil Cement (294870 KS) shares (43.43% of the total shares) at ₩154,350. <a href="http://kind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptno=20180910000387&amp;docno=&amp;viewerhost=&amp;viewerport=" target="_blank">Here is the link of the regulatory filing about this tender</a>. (Source: KIND)</li>
<li>The owner side owns a 44.26% stake in Cement even excluding 8.06% owned by Holdings. This is more than enough to meet the target. So, it is obvious that the company has no strong incentive to encourage Cement minority shareholders to tender.</li>
<li>At the current prices, swap ratio is at about 1.9 to 1. Holdings' NAV suggests about 1.7 to 1. Moreover, the major shareholder side wouldn't want a favorite swap ratio for Cement shareholders. So, there is room for short-term upside at Holdings. For hedge, I would short Cement at a 100% ratio to take advantage of this special situation (tender).</li>
</ul>


Hanil Holdings (003300 KS) targets a total 1,800,000 Hanil Cement (294870 KS) shares (43.43% of the total shares) at ₩154,350. Here is the link of the regulatory filing about this tender. (Source: KIND)
The owner side owns a 44.26% stake in Cement even excluding 8.06% owned by Holdings. This is more than enough to meet the target. So, it is obvious that the company has no strong incentive to encourage Cement minority shareholders to tender.
At the current prices, swap ratio is at about 1.9 to 1. Holdings' NAV suggests about 1.7 to 1. Moreover, the major shareholder side wouldn't want a favorite swap ratio for Cement shareholders. So, there is room for short-term upside at Holdings. For hedge, I would short Cement at a 100% ratio to take advantage of this special situation (tender).


한일홀딩스(003300): 공개매수 이벤트 요약