Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>The tender offer period for Hanwha Galleria ended on 11 September. Its share price closed down 7.4% but still up 8.2% from its price prior to the tender offer announcement.</li>
<li>The local media accounts mentioned today that about 80-90% of the shares targeted in this tender offer have been filled.</li>
<li>If 90% of the tender offer is successful, Kim Dong-Sun's stake in the company will rise from 2.3% to 18.1%.</li>
</ul>


The tender offer period for Hanwha Galleria ended on 11 September. Its share price closed down 7.4% but still up 8.2% from its price prior to the tender offer announcement.
The local media accounts mentioned today that about 80-90% of the shares targeted in this tender offer have been filled.
If 90% of the tender offer is successful, Kim Dong-Sun's stake in the company will rise from 2.3% to 18.1%.


Kim Dong-Sun Likely to Purchase More Shares of Hanwha Galleria Post Tender Offer

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>Hanwha Galleria’s tender offer, led by Kim Dong-sun, closed today with a subscription rate just over 80%, according to the local brokerage after market close.</li>
<li>Retail investors in small caps like Hanwha Galleria often skip tender offers, hoping for price gains. Kim Dong-sun may try to buy the remaining 10-15% soon, possibly via open-market buys.</li>
<li>Watch for signs that Kim Dong-sun might go for a second tender to take Galleria private. He might be aiming to avoid taxes and boost his stake’s value.</li>
</ul>


Hanwha Galleria’s tender offer, led by Kim Dong-sun, closed today with a subscription rate just over 80%, according to the local brokerage after market close.
Retail investors in small caps like Hanwha Galleria often skip tender offers, hoping for price gains. Kim Dong-sun may try to buy the remaining 10-15% soon, possibly via open-market buys.
Watch for signs that Kim Dong-sun might go for a second tender to take Galleria private. He might be aiming to avoid taxes and boost his stake’s value.


Hanwha Galleria Tender Results Are in with No Proration Issue Despite a Fat Spread. What’s Next?

<ul>
<li>The Hanwha Galleria tender offer has no cancellation risk but carries proration risk, keeping the spread at around 7%.</li>
<li>For Hanwha Galleria, most floating shares are held by retail investors, and the smaller float size compared to Hansol Logistics further reduces proration risk.</li>
<li>Even though the actual trading volume might be a concern, it’s still worth thinking about going for an aggressive strategy to take advantage of the spread, which is around 7%.</li>
</ul>


The Hanwha Galleria tender offer has no cancellation risk but carries proration risk, keeping the spread at around 7%.
For Hanwha Galleria, most floating shares are held by retail investors, and the smaller float size compared to Hansol Logistics further reduces proration risk.
Even though the actual trading volume might be a concern, it’s still worth thinking about going for an aggressive strategy to take advantage of the spread, which is around 7%.


Examining the Severity of Proration Risk in the Hanwha Galleria Tender Offer

<ul>
<li>It was announced that a tender offer to purchase a 17.54% stake in Hanwha Galleria has been launched by Kim Dong-Sun (Vice President at Hanwha Galleria).</li>
<li>Tender offer price is 1,600 won per share, which is 22.8% higher than the closing price on 22 August. Tender offer amount is 54.4 billion won. </li>
<li>On 23 August, Hanwha Galleria's share price is likely to rise close to the tender offer price as many investors believe the tender offer is likely to be successful. </li>
</ul>


It was announced that a tender offer to purchase a 17.54% stake in Hanwha Galleria has been launched by Kim Dong-Sun (Vice President at Hanwha Galleria).
Tender offer price is 1,600 won per share, which is 22.8% higher than the closing price on 22 August. Tender offer amount is 54.4 billion won. 
On 23 August, Hanwha Galleria's share price is likely to rise close to the tender offer price as many investors believe the tender offer is likely to be successful. 


A Tender Offer to Purchase a 17.5% Stake in Hanwha Galleria by Kim Dong-Sun

<ul>
<li>In this insight, we review the major tender offers of Korean companies in 2024. The tender offers have mostly been profitable for the investors in these targeted companies.</li>
<li>What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week and month.</li>
<li>The number of tender offers in Korea increased from 6 in 2020 to 12 in 2021, 7 in 2022, 18 in 2023, and 28 in 2024.</li>
</ul>


In this insight, we review the major tender offers of Korean companies in 2024. The tender offers have mostly been profitable for the investors in these targeted companies.
What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week and month.
The number of tender offers in Korea increased from 6 in 2020 to 12 in 2021, 7 in 2022, 18 in 2023, and 28 in 2024.


A Review of Tender Offers in Korea in 2024

South Korea

Hanwha Galleria Co., Ltd. operates department stores. The Company retails clothing, cosmetics, shoes, household goods, foods, and other related goods. Hanwha Galleria also offers services worldwide.

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

Hanwha Galleria (452260 KS)

Kim Dong-Sun Likely to Purchase More Shares of Hanwha Galleria Post Tender Offer

The local media accounts mentioned today that about 80-90% of the shares targeted in this tender offer of Hanwha Galleria have been filled.

Douglas Kim

Hanwha Galleria Tender Results Are in with No Proration Issue Despite a Fat Spread. What’s Next?

This post just updates on the Hanwha Galleria tender offer subscription results that have come through the local market and explores upcoming...

Sanghyun Park

Examining the Severity of Proration Risk in the Hanwha Galleria Tender Offer

This post explores the proration risk in the Hanwha Galleria tender offer, where the spread remains attractively high at around 7%.

Sanghyun Park

A Tender Offer to Purchase a 17.5% Stake in Hanwha Galleria by Kim Dong-Sun

After the market close on 22 August, it was announced that a tender offer to purchase a 17.54% stake in Hanwha Galleria has been launched by Kim...

Douglas Kim

A Review of Tender Offers in Korea in 2024

In this insight, we review the major tender offers of Korean companies in 2024. The tender offers have mostly been profitable for the investors in...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)