Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Event-Driven

<ul>
<li>MBK launches a tender offer to acquire 14.6% of Korea Zinc at ₩660,000 per share, a ₩2T deal with an 18.7% premium. Offer runs from September 13 to October 4.</li>
<li>On top of that, MBK’s also rolling out a tender offer for Young Poong Precision at ₩20,000 per share—a hefty 113% premium over yesterday’s close.</li>
<li>Spread action is possible if the Choi family counters, driving volatility. The market’s watching for a higher bid, which could create trading opportunities amid rising spread volatility.</li>
</ul>


MBK launches a tender offer to acquire 14.6% of Korea Zinc at ₩660,000 per share, a ₩2T deal with an 18.7% premium. Offer runs from September 13 to October 4.
On top of that, MBK’s also rolling out a tender offer for Young Poong Precision at ₩20,000 per share—a hefty 113% premium over yesterday’s close.
Spread action is possible if the Choi family counters, driving volatility. The market’s watching for a higher bid, which could create trading opportunities amid rising spread volatility.


MBK’s Dual Tenders for Korea Zinc and Youngpoong Precision: The Largest Deal Ever in Korea

<ul>
<li>The market is watching closely for when Hyundai Motor might sell its 5% stake in Korea Zinc, with the lockup ending on October 7th.</li>
<li>Hyundai might mediate to end the lawsuit and lift the injunction, potentially agreeing to sell the stake to a third party or on the market.</li>
<li>The uncertainty around Hyundai’s Korea Zinc stake sale makes trading challenging, but its actions in Q4 could significantly affect Korea Zinc’s stock price and create trading opportunities.</li>
</ul>


The market is watching closely for when Hyundai Motor might sell its 5% stake in Korea Zinc, with the lockup ending on October 7th.
Hyundai might mediate to end the lawsuit and lift the injunction, potentially agreeing to sell the stake to a third party or on the market.
The uncertainty around Hyundai’s Korea Zinc stake sale makes trading challenging, but its actions in Q4 could significantly affect Korea Zinc’s stock price and create trading opportunities.


Trading Situation for Hyundai Motor's 5% Stake in Korea Zinc, Set to Be Unlocked in October

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>After the Kim family-backed Hanwha Energy completed <strong><a href="https://www.smartkarma.com/entities/hanwha-corporation" target="_blank" data-smartkarma-citation="entities:10619:1" rel="noopener">Hanwha Corporation</a></strong>'s Partial Offer last month, <strong><a href="https://www.smartkarma.com/entities/hanwha-galleria-corp" target="_blank" data-smartkarma-citation="entities:39998:1" rel="noopener">Hanwha Galleria (452260 KS)</a></strong>'s VP Kim Dong-seon has now launched a Partial Offer for 17.5% in Galleria. </li>
<li>Preceding my comments on Hanwha 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>


After the Kim family-backed Hanwha Energy completed Hanwha Corporation's Partial Offer last month, Hanwha Galleria (452260 KS)'s VP Kim Dong-seon has now launched a Partial Offer for 17.5% in Galleria. 
Preceding my comments on Hanwha 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: More Partial Offers In The Hanwha Group Complex

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Aug 16th which has an aggregated short interest worth USD5.3bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Sk Hynix (000660 KS).</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Aug 16th which has an aggregated short interest worth USD5.3bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Sk Hynix (000660 KS).


KRX Short Interest Weekly (Aug 16th): Sk Hynix

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>On 7 August, Korea Zinc (010130 KS) announced several impressive capital return plan that should help to increase shareholder value.</li>
<li>The separation of Korea Zinc between the Choi and Jang families has been in progress in the past several years. The exact timing of when this occurs remains uncertain. </li>
<li>Our NAV Analysis of Young Poong is NAV per share of 470,065 won, representing a 52% upside from current levels. </li>
</ul>


On 7 August, Korea Zinc (010130 KS) announced several impressive capital return plan that should help to increase shareholder value.
The separation of Korea Zinc between the Choi and Jang families has been in progress in the past several years. The exact timing of when this occurs remains uncertain. 
Our NAV Analysis of Young Poong is NAV per share of 470,065 won, representing a 52% upside from current levels. 


Korea Zinc: Impressive Capital Return Plans and a Big Price Gap Between Korea Zinc and Young Poong

South Korea

Korea Zinc Co., Ltd. specializes in non-ferrous metal smelting industry.  The Company manufactures zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper.  Korea Zinc provides its products to domestic and overseas markets.

Price Gauge
52-week Range	0.00 - 0.00
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Korea Zinc (010130 KS)

MBK’s Dual Tenders for Korea Zinc and Youngpoong Precision: The Largest Deal Ever in Korea

This post details MBK Parnters' dual tender offers for Korea Zinc and Youngpoong Precision, which is the largest deal ever in Korea’s stock market...

Sanghyun Park

Trading Situation for Hyundai Motor's 5% Stake in Korea Zinc, Set to Be Unlocked in October

This post explores the Korea Zinc proxy battle and examines how Hyundai Motor's 5% stake, set to be released in October, factors into the mix.

Sanghyun Park

StubWorld: More Partial Offers In The Hanwha Group Complex

Buy Hanwha Galleria at the current price of ₩1,507/share, as I type. Separately, Hanwha Corp is still trading cheap. Expect another Kim family-led...

David Blennerhassett

KRX Short Interest Weekly (Aug 16th): Sk Hynix

We analyzed KRX short interest report for the past week and highlighted short interest changes in Sk Hynix (ticker: 000660 KS).

Ke Yan, CFA, FRM

Korea Zinc: Impressive Capital Return Plans and a Big Price Gap Between Korea Zinc and Young Poong

Korea Zinc announces capital return plan to increase shareholder value, while separation between Choi and Jang families continues with uncertain...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

MBK’s Dual Tenders for Korea Zinc and Youngpoong Precision: The Largest Deal Ever in Korea

This post details MBK Parnters' dual tender offers for Korea Zinc and Youngpoong Precision, which is the largest deal ever in Korea’s stock market...

Sanghyun Park

Trading Situation for Hyundai Motor's 5% Stake in Korea Zinc, Set to Be Unlocked in October

This post explores the Korea Zinc proxy battle and examines how Hyundai Motor's 5% stake, set to be released in October, factors into the mix.

Sanghyun Park

StubWorld: More Partial Offers In The Hanwha Group Complex

Buy Hanwha Galleria at the current price of ₩1,507/share, as I type. Separately, Hanwha Corp is still trading cheap. Expect another Kim family-led...

David Blennerhassett

KRX Short Interest Weekly (Aug 16th): Sk Hynix

We analyzed KRX short interest report for the past week and highlighted short interest changes in Sk Hynix (ticker: 000660 KS).

Ke Yan, CFA, FRM

Korea Zinc: Impressive Capital Return Plans and a Big Price Gap Between Korea Zinc and Young Poong

​Korea Zinc announces capital return plan to increase shareholder value, while separation between Choi and Jang families continues with uncertain...

Douglas Kim

Korea Zinc announces capital return plan to increase shareholder value, while separation between Choi and Jang families continues with uncertain...