Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Wonik Merger Stock Swap: Summary & Trading Opportunities

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/26912" target="_blank" data-smartkarma-citation="entities:26912:1">Wonik IPS (240810 KS)</a> / Wonik Tera Semicon (123100 KS) merger got shareholder approval yesterday. Spread now stands at 4.28%. Spread peaked at 5.12% on Dec 12. Dividend-adjusted spread is 4.17%.</li>
<li>Tera Semicon is a bit of a concern. Its stock purchase price is 1.38% higher than current price. Worst case would be half of the minority shareholders claiming rights. Even if so, this would be less than ₩60bil. The company is liquid enough to absorb it.</li>
<li>Local institutional arb traders have been seen doing this trade, at least partly. I'd make this trade when spread widens to 5~6%. I expect it to get to this level very soon. </li>
</ul>



Wonik IPS (240810 KS) / Wonik Tera Semicon (123100 KS) merger got shareholder approval yesterday. Spread now stands at 4.28%. Spread peaked at 5.12% on Dec 12. Dividend-adjusted spread is 4.17%.
Tera Semicon is a bit of a concern. Its stock purchase price is 1.38% higher than current price. Worst case would be half of the minority shareholders claiming rights. Even if so, this would be less than ₩60bil. The company is liquid enough to absorb it.
Local institutional arb traders have been seen doing this trade, at least partly. I'd make this trade when spread widens to 5~6%. I expect it to get to this level very soon. 


원익 합병 스왑: 배당금 조정 수익률 현재 4.17% - 취소 위험은 낮음

Wonik Ips

원익 합병 스왑: 배당금 조정 수익률 현재 4.17% - 취소 위험은 낮음