Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>The minority shareholders of DB Hitek have started to go activist on the company. They are initially requesting the company to get access to its shareholder list.</li>
<li>Many minority shareholders are suspicious that DB Inc may be trying to intentionally lower the share price of DB Hitek through a physical division split off.</li>
<li>DB Hitek's share price has declined nearly 48% since its 52 week highs in January 2022. The valuation multiples of the company have declined to more attractive levels. </li>
</ul>


The minority shareholders of DB Hitek have started to go activist on the company. They are initially requesting the company to get access to its shareholder list.
Many minority shareholders are suspicious that DB Inc may be trying to intentionally lower the share price of DB Hitek through a physical division split off.
DB Hitek's share price has declined nearly 48% since its 52 week highs in January 2022. The valuation multiples of the company have declined to more attractive levels. 


Minority Shareholders Go Activist on DB Hitek

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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>DB was notified of the conversion to a holding company by the Korea FTC. DB must complete the conversion to a holding company by January 1, 2024.</li>
<li>DB has no option but to ECO DB HiTek, the same trick employed for LG Energy Solution, to meet the 30% stake obligation for DB HiTek.</li>
<li>There are still opportunities for outright shorting on DB HiTek as DB will likely announce DB HiTek split before August 12.</li>
</ul>


DB was notified of the conversion to a holding company by the Korea FTC. DB must complete the conversion to a holding company by January 1, 2024.
DB has no option but to ECO DB HiTek, the same trick employed for LG Energy Solution, to meet the 30% stake obligation for DB HiTek.
There are still opportunities for outright shorting on DB HiTek as DB will likely announce DB HiTek split before August 12.


Understanding DB HiTek Shorting Event Amid DB's Holdco Conversion

South Korea

DB Inc. provides IT services including application outsourcing, infrastructure outsourcing, cloud service and integrated maintenance and repair. The Company also operates trading business and manufacures electronic material s such as adhesives and magnetic powder cores.

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DB Inc (012030 KS)

Minority Shareholders Go Activist on DB Hitek

The minority shareholders of DB Hitek have started to go activist on the company. They are initially requesting the company to get access to its...

Douglas Kim

Understanding DB HiTek Shorting Event Amid DB's Holdco Conversion

This post investigates the DB HiTek shorting event triggered by DB Co., Ltd.'s obligatory holdco conversion, which was officially ordered by Korea...

Sanghyun Park

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