Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

SKT Split-Up Is Really Imminent - Likely Scenario & Price Upside Analysis

SK Telecom - Benchmarking Alphabet to Potentially Create SK Tomorrow

SK Group Restructuring - Local Institutions Are Already Making A Move

Toshiba Memory Company Deal Structure Breakdown - SK Hynix Regulatory Filings

SK Hynix Says It Will Not Give up Toshiba Voting Stakes - Why Hynix So Obsessed with Toshiba?

Event-Driven

<a href="https://www.smartkarma.com/entities/395" target="_blank" data-smartkarma-citation="entities:395:1">SK Telecom (017670 KS)</a> just announced in a regulatory filing that it will acquire the remaining stake of SK Telink to make it its wholly-owned subsidiary. SKT currently owns a 85.86% stake (as of Sep 29), so it will acquire the remaining 14.14% stake. SKT will pay ₩270,583 in cash for each share of Telink. This is a very interesting move. Why now? Is this part of the preparation to create SKT-centered intermediate holdco? If not, I don't really see any point of doing this at this point.<div class="content-highlight">SKT regulatory filing:<a href="https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170929000001" target="_blank">https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170929000001</a></div><table class="table table-striped"><tbody><tr><td colspan="2" style="width: 733px;">SKT-SK Telink share swap summary</td></tr><tr><td style="width: 343.9538269042969px;">Type</td><td style="width: 389.0461730957031px;">Small scale share swap</td></tr><tr><td style="width: 343.9538269042969px;">Tendering company</td><td style="width: 389.0461730957031px;"><a href="https://www.smartkarma.com/entities/395" target="_blank" data-smartkarma-citation="entities:395:1">SK Telecom (017670 KS)</a></td></tr><tr><td style="width: 343.9538269042969px;">Target company</td><td style="width: 389.0461730957031px;">SK Telink</td></tr><tr><td style="width: 343.9538269042969px;">Swap ratio</td><td style="width: 389.0461730957031px;">1 : 1.0687714</td></tr><tr><td style="width: 343.9538269042969px;">Proceeding</td><td style="width: 389.0461730957031px;">SKT will pay ₩270,583 in cash for each share of Telink.(No new right of SKT will be issued.)</td></tr><tr><td style="width: 343.9538269042969px;">Record date of the register of shareholders</td><td style="width: 389.0461730957031px;">Oct 13, 2017</td></tr><tr><td style="width: 343.9538269042969px;">Closing of the register of shareholders</td><td style="width: 389.0461730957031px;">Oct 16 - 18, 2017</td></tr><tr><td style="width: 343.9538269042969px;">Dissenting to the merger</td><td style="width: 389.0461730957031px;">Oct 13 - 27, 2017</td></tr><tr><td style="width: 343.9538269042969px;">EGM</td><td style="width: 389.0461730957031px;">Nov 9. 2017</td></tr><tr><td style="width: 343.9538269042969px;">Share swap/transfer</td><td style="width: 389.0461730957031px;">Dec 14, 2017</td></tr><tr><td colspan="2" style="width: 733px;">Source: DART</td></tr></tbody></table>

SK Telecom (017670 KS) just announced in a regulatory filing that it will acquire the remaining stake of SK Telink to make it its wholly-owned subsidiary. SKT currently owns a 85.86% stake (as of Sep 29), so it will acquire the remaining 14.14% stake. SKT will pay ₩270,583 in cash for each share of Telink. This is a very interesting move. Why now? Is this part of the preparation to create SKT-centered intermediate holdco? If not, I don't really see any point of doing this at this point.SKT regulatory filing:https://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170929000001SKT-SK Telink share swap summaryTypeSmall scale share swapTendering companySK Telecom (017670 KS)Target companySK TelinkSwap ratio1 : 1.0687714ProceedingSKT will pay ₩270,583 in cash for each share of Telink.(No new right of SKT will be issued.)Record date of the register of shareholdersOct 13, 2017Closing of the register of shareholdersOct 16 - 18, 2017Dissenting to the mergerOct 13 - 27, 2017EGMNov 9. 2017Share swap/transferDec 14, 2017Source: DART

SKT와 SK텔링크 주식 교환 계약 - 요약 및 결과