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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

This post is a summary of Hansol Technics's ₩52bil rights offer. Capital increases by 45.23%. Stockholders get new shares at a 0.37353 to 1 ratio. This is a standby underwriting. There is no cancellation risk. More details on this event are as follows.

This post is a summary of Hansol Technics's ₩52bil rights offer. Capital increases by 45.23%. Stockholders get new shares at a 0.37353 to 1 ratio. This is a standby underwriting. There is no cancellation risk. More details on this event are as follows.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

In 2018, we started to see a pick-up in corporate activism in Korea as evidenced by several high-profile cases including the Hyundai Motor Group vs. Elliott Mgmt, <a href="https://www.smartkarma.com/entities/9484" target="_blank" data-smartkarma-citation="entities:9484:1">Macquarie Korea Infra Fund (088980 KS)</a> vs. Platform Partners, and most recently <a href="https://www.smartkarma.com/entities/19086" target="_blank" data-smartkarma-citation="entities:19086:1">Hanjin Kal Corp (180640 KS)</a> vs. KCGI. Although <a href="https://www.smartkarma.com/entities/155" target="_blank" data-smartkarma-citation="entities:155:1">Hyundai Motor Co (005380 KS)</a> and  <a href="https://www.smartkarma.com/entities/6089" target="_blank" data-smartkarma-citation="entities:6089:1">Hyundai Mobis (012330 KS)</a> have under-performed the market this year, stocks such as <a href="https://www.smartkarma.com/entities/9484" target="_blank" data-smartkarma-citation="entities:9484:1">Macquarie Korea Infra Fund (088980 KS)</a>, <a href="https://www.smartkarma.com/entities/19086" target="_blank" data-smartkarma-citation="entities:19086:1">Hanjin Kal Corp (180640 KS)</a>, and <a href="https://www.smartkarma.com/entities/12583" target="_blank" data-smartkarma-citation="entities:12583:1">Hanjin Transportation Co (002320 KS)</a> have out-performed the market this year, driven by increased efforts by the corporate activists to realize higher value for these companies. 
We believe that the momentum of corporate activism will likely accelerate in Korea next year, driven by the increased adoption of the Stewardship Code among many institutional asset management companies investing in Korean companies. In addition, the Korea National Pension Service (NPS) finally selected its new CIO Ahn Hyo-Joon in October 2018 after much delay. The NPS has been relatively quiet with regards to corporate activism in Korea. However, with the new CIO in place coupled with weak investment performance in the local equity investments, the NPS will likely to become more active in driving greater positive changes in corporate governance in Korea next year. 
In this report, we highlight the top seven companies (with market cap of at least $200 million) that could be targets of corporate activism in Korea next year.

In 2018, we started to see a pick-up in corporate activism in Korea as evidenced by several high-profile cases including the Hyundai Motor Group vs. Elliott Mgmt, Macquarie Korea Infra Fund (088980 KS) vs. Platform Partners, and most recently Hanjin Kal Corp (180640 KS) vs. KCGI. Although Hyundai Motor Co (005380 KS) and  Hyundai Mobis (012330 KS) have under-performed the market this year, stocks such as Macquarie Korea Infra Fund (088980 KS), Hanjin Kal Corp (180640 KS), and Hanjin Transportation Co (002320 KS) have out-performed the market this year, driven by increased efforts by the corporate activists to realize higher value for these companies. 
We believe that the momentum of corporate activism will likely accelerate in Korea next year, driven by the increased adoption of the Stewardship Code among many institutional asset management companies investing in Korean companies. In addition, the Korea National Pension Service (NPS) finally selected its new CIO Ahn Hyo-Joon in October 2018 after much delay. The NPS has been relatively quiet with regards to corporate activism in Korea. However, with the new CIO in place coupled with weak investment performance in the local equity investments, the NPS will likely to become more active in driving greater positive changes in corporate governance in Korea next year. 
In this report, we highlight the top seven companies (with market cap of at least $200 million) that could be targets of corporate activism in Korea next year. 

Top Seven Korean Stocks for Corporate Activists in 2019

South Korea

Hansol Homedeco Co., Ltd. manufactures and sells a variety of wood products, such as medium density fiberboards (MDF), particle boards, laminated flooring, and lumber products.  The Company also produces interior decorating materials and provides interior construction services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hansol Homedeco (025750 KS)

Hansol Technics Rights Offer Summary

This post is a summary of Hansol Technics's ₩52bil rights offer. Capital increases by 45.23%. Stockholders get new shares at a 0.37353 to 1 ratio....

Sanghyun Park

Top Seven Korean Stocks for Corporate Activists in 2019

In 2018, we started to see a pick-up in corporate activism in Korea as evidenced by several high-profile cases including the Hyundai Motor Group...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)