Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

In my previous insight on SK restructuring, I said the the most likely scenario would be SKT split-up and SKT Holdco+SK Holdco merger. Why? It is because SK Group has to convert SKT's 12.5% treasury shares into common shares having voting rights. I still have this view. SK may afford to have more time than its chaebol peer (particularly Samsung) since SK may not be as desperate as Samsung when it comes to restructuring. Unlike Samsung, SK has already completed the major part of holdco structure conversion. So, SK's situation is little different from that of Samsung. Nonetheless, this does not necessarily mean that SK can delay another round of restructuring (involving SK Hynix) indefinitely. SK Hynix' memory chip business is currently undergoing an extremely important period for business fundamentals. That is, SK Hynix needs to do various expansion activities. This means SK Hynix needs to be placed directly under SK Holdco if the situation allows.

In my previous insight on SK restructuring, I said the the most likely scenario would be SKT split-up and SKT Holdco+SK Holdco merger. Why? It is because SK Group has to convert SKT's 12.5% treasury shares into common shares having voting rights. I still have this view. SK may afford to have more time than its chaebol peer (particularly Samsung) since SK may not be as desperate as Samsung when it comes to restructuring. Unlike Samsung, SK has already completed the major part of holdco structure conversion. So, SK's situation is little different from that of Samsung. Nonetheless, this does not necessarily mean that SK can delay another round of restructuring (involving SK Hynix) indefinitely. SK Hynix' memory chip business is currently undergoing an extremely important period for business fundamentals. That is, SK Hynix needs to do various expansion activities. This means SK Hynix needs to be placed directly under SK Holdco if the situation allows.

SK Restructuring Update - Gained Confidence About DRAM Biz (Daesung Industrial Gases Buyout Part 2)

Daesung Industrial Gases is up for sale. Sale price of this buyout deal is estimated at around ₩1.5tril. The gas supplier is owned by a consortium led by Goldman Sachs (62% stake) and the gas supplier’s parent Daesung Group Partners Co. (38% stake). The stakeholders of Daesung Industrial Gases sent the letter to invite buyers to the auction and reportedly received preliminary bids from more than 10 industrial companies and private equity funds at home and abroad. The stakeholders are planning to shortlist preferred bidders within next week. They are planning to complete this sale process by next February. Much attention is on SK Holdings who is viewed as the strongest contender in the bidding race.* In Part 1 (as below), I summarized this buyout deal with valuation related issues. In Part 2, I will specifically look into SK Group's intention to use this buyout deal to accelerate and facilitate its own restructuring process involving SKT split-up and SK Holdings+SKT Holdco merger.

Daesung Industrial Gases is up for sale. Sale price of this buyout deal is estimated at around ₩1.5tril. The gas supplier is owned by a consortium led by Goldman Sachs (62% stake) and the gas supplier’s parent Daesung Group Partners Co. (38% stake). The stakeholders of Daesung Industrial Gases sent the letter to invite buyers to the auction and reportedly received preliminary bids from more than 10 industrial companies and private equity funds at home and abroad. The stakeholders are planning to shortlist preferred bidders within next week. They are planning to complete this sale process by next February. Much attention is on SK Holdings who is viewed as the strongest contender in the bidding race.* In Part 1 (as below), I summarized this buyout deal with valuation related issues. In Part 2, I will specifically  look into SK Group's intention to use this buyout deal to accelerate and facilitate its own restructuring process involving SKT split-up and SK Holdings+SKT Holdco merger.

Daesung Industrial Gases Buyout Part 1 - Deal Summary and Valuation Issue

South Korea

Daesung Group Holdings Co., Ltd. purchases and distributes petroleum and gas products through its gasoline stations and propane gas filling stations. The Company also distributes electricity, offers construction services, and manufactures industrial machinery.  In addition, Daesung Industrial invests in venture capital through its subsidiary.

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Daesung Group Partners (005620 KS)

SK Restructuring Update - Gained Confidence About DRAM Biz (Daesung Industrial Gases Buyout Part 2)

In my previous insight on SK restructuring, I said the the most likely scenario would be SKT split-up and SKT Holdco+SK Holdco merger. Why? It is...

Sanghyun Park

Daesung Industrial Gases Buyout Part 1 - Deal Summary and Valuation Issue

Daesung Industrial Gases is up for sale. Sale price of this buyout deal is estimated at around ₩1.5tril. The gas supplier is owned by a consortium...

Sanghyun Park

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52-week Range

Market Cap (USDm)

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