Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

Hyundai Construction Equipment / Event-Driven

<p>It was announced on 10 December that Hyundai Heavy Industries Group has been selected as the <a href="https://finance.naver.com/news/news_read.nhn?article_id=0004805146&amp;office_id=018&amp;mode=LSS2D&amp;type=0&amp;section_id=101&amp;section_id2=258&amp;section_id3=&amp;date=20201210&amp;page=2" target="_blank" rel="noopener">preferred bidder</a> to acquire the 35.4% controlling stake of <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS), </a>held by <a href="https://www.smartkarma.com/entities/doosan-heavy-industries-construction" target="_blank" data-smartkarma-citation="entities:7389:1" rel="noopener">Doosan Heavy Industries &amp; Construction (034020 KS)</a>. Doosan Infracore currently has a market cap of 1.9 trillion won. Hence, a 35.4% stake in the company would be worth 663 billion won. It has been reported that the consortium led by Hyundai Heavy Industries and KDB Investment bid about 900 billion won for Doosan Infracore. Hence, the potential acquisition price would be about 36% premium to current price of Doosan Infracore (8,670 won). The final acquisition price is not yet determined so this is subject to change. </p><div class="content-highlight"><p>In our view, there may be a bigger positive impact on Hyundai Construction Equipment if the HHI Group ends up acquiring Doosan Infracore. There are two major reasons. First, there are expected to some synergies between Doosan Infracore and Hyundai Construction Equipment that could have a bigger positive impact on Hyundai Construction Equipment. Second, the valuation gap between Doosan Infracore and Hyundai Construction Equipment may be reduced.</p></div>

It was announced on 10 December that Hyundai Heavy Industries Group has been selected as the preferred bidder to acquire the 35.4% controlling stake of Doosan Infracore (042670 KS), held by Doosan Heavy Industries &amp; Construction (034020 KS). Doosan Infracore currently has a market cap of 1.9 trillion won. Hence, a 35.4% stake in the company would be worth 663 billion won. It has been reported that the consortium led by Hyundai Heavy Industries and KDB Investment bid about 900 billion won for Doosan Infracore. Hence, the potential acquisition price would be about 36% premium to current price of Doosan Infracore (8,670 won). The final acquisition price is not yet determined so this is subject to change. In our view, there may be a bigger positive impact on Hyundai Construction Equipment if the HHI Group ends up acquiring Doosan Infracore. There are two major reasons. First, there are expected to some synergies between Doosan Infracore and Hyundai Construction Equipment that could have a bigger positive impact on Hyundai Construction Equipment. Second, the valuation gap between Doosan Infracore and Hyundai Construction Equipment may be reduced.

Korea M&A Spotlight: HHI Group Selected As Preferred Bidder for Doosan Infracore

<p>In this insight, we highlight 26 Korean companies that are/may be seeking to find new owners through M&amp;As in 2021. Key sectors of M&amp;A in Korea in 2021 include consumer and industrial. We also provide a review of our M&amp;A research in 2020. We wrote 29 reports about the M&amp;As in 2020. The M&amp;A market in Korea is estimated to be about 35 trillion won in 2020, down 8% YoY. The local media have mentioned that the M&amp;A market in Korea could be nearly <a href="https://finance.naver.com/news/news_read.nhn?article_id=0004711778&amp;office_id=009&amp;mode=LSS2D&amp;type=0&amp;section_id=101&amp;section_id2=258&amp;section_id3=&amp;date=20201207&amp;page=3" target="_blank" rel="noopener">45 trillion won</a> in 2021, up 29% YoY, which would surpass the all-time high of 38 trillion won in 2019.  </p>

In this insight, we highlight 26 Korean companies that are/may be seeking to find new owners through M&amp;As in 2021. Key sectors of M&amp;A in Korea in 2021 include consumer and industrial. We also provide a review of our M&amp;A research in 2020. We wrote 29 reports about the M&amp;As in 2020. The M&amp;A market in Korea is estimated to be about 35 trillion won in 2020, down 8% YoY. The local media have mentioned that the M&amp;A market in Korea could be nearly 45 trillion won in 2021, up 29% YoY, which would surpass the all-time high of 38 trillion won in 2019.  

Review of Our M&A Research in 2020 & Korea M&A Market Outlook in 2021: What’s For Sale?

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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Equity Capital Markets

Doosan Enerbility / Equity Capital Markets

<p>We are not on Day 3 of the DHI's ₩1.3T rights offering.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Timetable"}'>Timetable</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"BOD meeting"}'>BOD meeting</td>
<td data-sheets-value='{"1":3,"3":44078}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'>September 4, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Preliminary pricing"}'>Preliminary pricing</td>
<td data-sheets-value='{"1":3,"3":44116}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'>October 12, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ex-rights date"}'>Ex-rights date</td>
<td data-sheets-value='{"1":3,"3":44118}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'>October 14, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Record date"}'>Record date</td>
<td data-sheets-value='{"1":3,"3":44119}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'>October 15, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Subscription rights trade beginning"}'><strong>Subscription rights trade beginning</strong></td>
<td data-sheets-value='{"1":3,"3":44153}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'><strong>November 18, 2020</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Subscription rights trade ending"}'><strong>Subscription rights trade ending</strong></td>
<td data-sheets-value='{"1":3,"3":44159}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'><strong>November 24, 2020</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Final pricing"}'>Final pricing</td>
<td data-sheets-value='{"1":3,"3":44165}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'>November 30, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Stockholder subscription"}'>Stockholder subscription</td>
<td data-sheets-value='{"1":3,"3":44168}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'>December 3, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Public subscription"}'>Public subscription</td>
<td data-sheets-value='{"1":3,"3":44173}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'>December 8, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Payment"}'>Payment</td>
<td data-sheets-value='{"1":3,"3":44176}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'>December 11, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Listing"}'>Listing</td>
<td data-sheets-value='{"1":3,"3":44189}' data-sheets-numberformat='{"1":5,"2":"mmmm\" \"d\", \"yyyy","3":1}'>December 24, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Record date for bonus shares"}'>Record date - bonus shares</td>
<td data-sheets-value='{"1":2,"2":"N/A"}'>N/A</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Listing - bonus shares"}'>Listing - bonus shares</td>
<td data-sheets-value='{"1":2,"2":"N/A"}'>N/A</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Overview"}'>Overview</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Issuer"}'>Issuer</td>
<td data-sheets-value='{"1":2,"2":"Doosan Heavy Industries Constrctn Co Ltd"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Doosan Heavy Industries Constrctn Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td data-sheets-value='{"1":2,"2":"034020"}' data-sheets-formula='="034020"'>034020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target"}'>Target</td>
<td data-sheets-value='{"1":2,"2":"Pubic offering of forfeited shares after offering to stockholders"}'>Pubic-offering of forfeited shares after offering to stockholders</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Transferability"}'>Transferability</td>
<td data-sheets-value='{"1":2,"2":"Renounceable"}'>Renounceable</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Volume"}'>Volume</td>
<td data-sheets-value='{"1":3,"3":121495330}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[15]C[0]">121,495,330</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Bonus issue volume"}'>Bonus issue volume</td>
<td data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Preliminary price"}'>Preliminary price</td>
<td data-sheets-value='{"1":3,"3":10700}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩10,700</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Preliminary value"}'>Preliminary value</td>
<td data-sheets-value='{"1":3,"3":1300000031000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-3]C[0]*R[-1]C[0]">₩1,300,000,031,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Oversubscription privilege"}'>Oversubscription privilege</td>
<td data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>20.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Banker"}'>Banker</td>
<td data-sheets-value='{"1":2,"2":"NH &amp; KIS"}'>NH &amp; KIS</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Underwriting type"}'>- Underwriting type</td>
<td data-sheets-value='{"1":2,"2":"Standby"}'>Standby</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>The 1st round pricing was ₩9,640.</p><p>The pricing will get finalized on November 30. At the current price, ₩9,640 will be a likely price for a subscription.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"1st round pricing"}'>1st round pricing</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Date"}'>Date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44116}' data-sheets-numberformat='[null,5,"mmmm\" \"d\", \"yyyy",1]' data-sheets-formula="=Terms!R[27]C[0]">October 12, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1st round price"}'>1st round price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9640}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>₩9,640</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"2nd round pricing"}'>2nd round pricing</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Date"}'>Date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44165}' data-sheets-numberformat='[null,5,"mmmm\" \"d\", \"yyyy",1]' data-sheets-formula="=Terms!R[15]C[0]">November 30, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Close"}'>Close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":14800}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula='=googlefinance(Terms!R[-33]C[0], "price")'>₩14,800</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1W VWAP"}'>1W VWAP</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":14800}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula='=googlefinance(Terms!R[-34]C[0], "price")'>?</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Reference price"}'>Reference price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":14800}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=min(R[-2]C[0], R[-1]C[0])">₩14,800</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2nd round price"}'>2nd round price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11900}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=ceiling.math(R[-1]C[0]*(1-R[-26]C[0]), 100)">₩11,900</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'><p>Source: DART</p></td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Pricing"}'>Pricing</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1st round"}'>1st round</td>
<td data-sheets-value='{"1":2,"2":"RP × (1 - 20%) / [1 + (48% × 20%)]"}' data-sheets-formula='="RP × (1 - "&amp;(R[11]C[0]*100&amp;"%")&amp;") / [1 + ("&amp;(R[12]C[0]*100&amp;"%"&amp;" × "&amp;(R[11]C[0]*100&amp;"%"&amp;")]"))'>RP × (1 - 20%) / [1 + (48% × 20%)]</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference price (RP)"}'>- Reference price (RP)</td>
<td data-sheets-value='{"1":2,"2":"Min [Close, Avg (Close, 1W VWAP, 1M VWAP)]"}'>Min [Close, Avg (Close, 1W VWAP, 1M VWAP)]</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td data-sheets-value='{"1":3,"3":44116}' data-sheets-numberformat='[null,5,"mmmm\" \"d\", \"yyyy",1]' data-sheets-formula="=Terms!R[41]C[0]">October 12, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ex-rights base price"}'>Ex-rights base price</td>
<td data-sheets-value='{"1":2,"2":"[RP + (1st × 48%)] / (1 + 48%)"}' data-sheets-formula='="[RP + (1st × "&amp;R[9]C[0]*100&amp;"%"&amp;")] / (1 + "&amp;R[9]C[0]*100&amp;"%"&amp;")"'>[RP + (1st × 48%)] / (1 + 48%)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference price (RP)"}'>- Reference price (RP)</td>
<td data-sheets-value='{"1":2,"2":"Previous close"}'>Previous close</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td data-sheets-value='{"1":3,"3":44118}' data-sheets-numberformat='[null,5,"mmmm\" \"d\", \"yyyy",1]' data-sheets-formula="=Terms!R[39]C[0]">October 14, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2nd round"}'>2nd round</td>
<td data-sheets-value='{"1":2,"2":"RP × (1 - 20%)"}' data-sheets-formula='="RP × (1 - "&amp;(R[5]C[0]*100&amp;"%")&amp;")"'>RP × (1 - 20%)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference price (RP)"}'>- Reference price (RP)</td>
<td data-sheets-value='{"1":2,"2":"Min [Close, Avg (Close, 1W VWAP)]"}'>Min [Close, Avg (Close, 1W VWAP)]</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td data-sheets-value='{"1":3,"3":44165}' data-sheets-numberformat='[null,5,"mmmm\" \"d\", \"yyyy",1]' data-sheets-formula="=Terms!R[40]C[0]">November 30, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Final"}'>Final</td>
<td data-sheets-value='{"1":2,"2":"Max [Min (1st, 2nd), 3D VWAP × 60%]"}'>Max [Min (1st, 2nd), 3D VWAP × 60%]</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td data-sheets-value='{"1":3,"3":44165}' data-sheets-numberformat='[null,5,"mmmm\" \"d\", \"yyyy",1]' data-sheets-formula="=Terms!R[38]C[0]">November 30, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Discount rate"}'>Discount rate</td>
<td data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='[null,3,"0.00%",1]'>20.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital increase rate"}'>Capital increase rate</td>
<td data-sheets-value='{"1":3,"3":0.48}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=LEFT(Terms!R[11]C[0],6)*100/100">48.00%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

We are not on Day 3 of the DHI's ₩1.3T rights offering.





Timetable

BOD meeting
September 4, 2020


Preliminary pricing
October 12, 2020


Ex-rights date
October 14, 2020


Record date
October 15, 2020


Subscription rights trade beginning
November 18, 2020


Subscription rights trade ending
November 24, 2020


Final pricing
November 30, 2020


Stockholder subscription
December 3, 2020


Public subscription
December 8, 2020


Payment
December 11, 2020


Listing
December 24, 2020


Record date - bonus shares
N/A


Listing - bonus shares
N/A

Source: DART







Overview

Issuer
Doosan Heavy Industries Constrctn Co Ltd


Ticker
034020


Target
Pubic-offering of forfeited shares after offering to stockholders


Transferability
Renounceable


Volume
121,495,330


Bonus issue volume
0


Preliminary price
₩10,700


Preliminary value
₩1,300,000,031,000


Oversubscription privilege
20.00%


Banker
NH &amp; KIS


- Underwriting type
Standby

Source: DART

The 1st round pricing was ₩9,640.The pricing will get finalized on November 30. At the current price, ₩9,640 will be a likely price for a subscription.





1st round pricing

Date
October 12, 2020


1st round price
₩9,640

Source: DART







2nd round pricing

Date
November 30, 2020


Close
₩14,800


1W VWAP
?


Reference price
₩14,800


2nd round price
₩11,900

Source: DART







Pricing

1st round
RP × (1 - 20%) / [1 + (48% × 20%)]


- Reference price (RP)
Min [Close, Avg (Close, 1W VWAP, 1M VWAP)]


- Reference date
October 12, 2020


Ex-rights base price
[RP + (1st × 48%)] / (1 + 48%)


- Reference price (RP)
Previous close


- Reference date
October 14, 2020


2nd round
RP × (1 - 20%)


- Reference price (RP)
Min [Close, Avg (Close, 1W VWAP)]


- Reference date
November 30, 2020


Final
Max [Min (1st, 2nd), 3D VWAP × 60%]


- Reference date
November 30, 2020


Discount rate
20.00%


Capital increase rate
48.00%

Source: DART



Doosan Heavy Offering: Subs Rights Trading at a 3+% Spread, Not Adjusting Oversubscription

Doosan Fuel Cell   / Equity Capital Markets

<p>The major shareholder put up a total of 19.7% stake in block deals.</p><p>But only half of the target went through despite a hefty discount. That is, 5.6M shares out of 10.9M found buyers. 4M went to overseas institutions, and the remaining 1.6M found local investors.</p><p>The offering price was fixed at the lower end of the suggested price band (₩35,465), so the final discount was 18% to the previous closing price.</p><p>The major shareholder is now left with 5.3M shares (9.6%).</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Overview"}'>Block deal terms &amp; outcome</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Date"}'>Date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44109}' data-sheets-numberformat='{"1":5,"2":"mmmm d, yyyy","3":1}'>October 5, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target"}'>Target</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Doosan Fuel Cell Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Doosan Fuel Cell Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"336260"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="336260"'>336260</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Seller"}'>Seller</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"The major shareholder"}'>The major shareholder</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offer size"}'>Offer size</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10927270}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>10,927,270</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of SO"}'>- % of SO</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.19691000744840959}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]/googlefinance(R[-3]C[0], "shares")'>19.69%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value"}'>Value (₩B)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":387.53563055}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-2]C[0]*R[4]C[0]/1000000000">387.5</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Last close"}'>Last close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":43250}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩43,250</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Indicative price - ceiling"}'>Indicative price - ceiling</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":37628}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩37,628</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % to last close"}'>- % to the last close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1299884393063584}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-2]C[0]-R[-1]C[0])/R[-2]C[0]">13.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Indicative price - Floor"}'>Indicative price - Floor</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":35465}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'>₩35,465</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % to last close"}'>- % to the last close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.18}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-4]C[0]-R[-1]C[0])/R[-4]C[0]">18.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Final price"}'><strong>Final price</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":35465}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩35,465</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Final quantity (sold)"}'><strong>Final quantity (sold)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5600000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>5,600,000</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Overseas"}'><strong>- Overseas</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4000000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>4,000,000</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Local"}'><strong>- Local</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1600000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[-2]C[0]-R[-1]C[0]"><strong> 1,600,000</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: Hankyung &amp; FnGuide"}'><em>Source: Hankyung &amp; FnGuide</em></td></tr>
</tbody>
</table>

The major shareholder put up a total of 19.7% stake in block deals.But only half of the target went through despite a hefty discount. That is, 5.6M shares out of 10.9M found buyers. 4M went to overseas institutions, and the remaining 1.6M found local investors.The offering price was fixed at the lower end of the suggested price band (₩35,465), so the final discount was 18% to the previous closing price.The major shareholder is now left with 5.3M shares (9.6%).





Block deal terms &amp; outcome

Date
October 5, 2020


Target
Doosan Fuel Cell Co Ltd


Ticker
336260


Seller
The major shareholder


Offer size
10,927,270


- % of SO
19.69%


Value (₩B)
387.5


Last close
₩43,250


Indicative price - ceiling
₩37,628


- % to the last close
13.00%


Indicative price - Floor
₩35,465


- % to the last close
18.00%


Final price
₩35,465


Final quantity (sold)
5,600,000


- Overseas
4,000,000


- Local
 1,600,000

Source: Hankyung &amp; FnGuide



Doosan Fuelcell: Block Deals Outcome on Rights Offer

<p>It was announced after the market close today that <a href="https://www.smartkarma.com/entities/doosan-fuel-cell-co-ltd" target="_blank" data-smartkarma-citation="entities:29252:1" rel="noopener">Doosan Fuel Cell Co Ltd (336260 KS)</a> will conduct a big block deal of 10.927 million shares. Doosan Fuel Cell currently has 55.493 million shares so the block deal would represent <a href="https://finance.naver.com/news/news_read.nhn?article_id=0004426670&amp;office_id=015&amp;mode=LSS2D&amp;type=0&amp;section_id=101&amp;section_id2=258&amp;section_id3=&amp;date=20201005&amp;page=1" target="_blank" rel="noopener">19.7%</a> of total shares outstanding. About 10 major shareholders (including Doosan Corp, Doosan Group Chairman Park Jung-Won, and Doosan Heavy Industries Chairman Park Ji-Won) are selling part of their shares in this block deal. </p><div class="content-highlight">
<p><strong>We would take this block deal due to the following three main reasons:</strong></p>
<p><strong>1) Big discount</strong><strong>&amp; reduced valuations</strong></p>
<p><strong>2) A leading, profitable player in the fuel cell industry in Korea</strong></p>
<p><strong>3) Inclusion in BBIG and Korean New Deal Funds</strong></p>
</div>

It was announced after the market close today that Doosan Fuel Cell Co Ltd (336260 KS) will conduct a big block deal of 10.927 million shares. Doosan Fuel Cell currently has 55.493 million shares so the block deal would represent 19.7% of total shares outstanding. About 10 major shareholders (including Doosan Corp, Doosan Group Chairman Park Jung-Won, and Doosan Heavy Industries Chairman Park Ji-Won) are selling part of their shares in this block deal. 
We would take this block deal due to the following three main reasons:
1) Big discount&amp; reduced valuations
2) A leading, profitable player in the fuel cell industry in Korea
3) Inclusion in BBIG and Korean New Deal Funds


Doosan Fuel Cell Big Block Deal Placement

South Korea

Doosan Enerbility Co., Ltd. manufactures and distributes construction machines. The Company produces gas turbines, engines, turbine generators, boilers, power plant equipment, and other related products. Doosan Enerbility also offers energy solutions for thermal power, nuclear power, and renewable energy.

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Doosan Fuel Cell Big Block Deal Placement

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