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

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hanwha-corporation" target="_blank" data-smartkarma-citation="entities:10619:1" rel="noopener">Hanwha Corporation (000880 KS)</a> is "expensive" on my monitor. But that doesn't paint the whole picture. And what's up with <a href="https://www.smartkarma.com/entities/genscript-biotech-corp" target="_blank" data-smartkarma-citation="entities:21041:1" rel="noopener">Genscript Biotech (1548 HK)</a>'s deconsolidation of <a href="https://www.smartkarma.com/entities/legend-biotech-corp" target="_blank" data-smartkarma-citation="entities:28963:1" rel="noopener">Legend Biotech (LEGN US)</a>?</li>
<li>Preceding my comments on Hanwha and Genscript Biotech/Legend Biotech are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



Hanwha Corporation (000880 KS) is "expensive" on my monitor. But that doesn't paint the whole picture. And what's up with Genscript Biotech (1548 HK)'s deconsolidation of Legend Biotech (LEGN US)?
Preceding my comments on Hanwha and Genscript Biotech/Legend Biotech are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Hanwha Corp; Genscript Biotech/Legend Biotech

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.

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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

StubWorld: Hanwha Corp; Genscript Biotech/Legend Biotech

Hanwha Corp appears attractive here. The pushback is that HC is thinly traded. And Genscript’s deconsolidation has minimal impact on financials...

David Blennerhassett

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