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.

Event-Driven

<ul>
<li>Korea Zinc’s delisting daily trading volume cutoff is 20K, about 0.12% of the total. We might see volumes plummet, making it tough to maintain even that 20K level.</li>
<li>Keep an eye on trading opportunities; we have some time with delisting risks, but low trading volume could lead to being booted from the KOSPI 200 and Global Index.</li>
<li>This sell-off could spike short-term volatility and create great entry points for trading, especially after the court approved the buyback tender, denying MBK's injunction.</li>
</ul>


Korea Zinc’s delisting daily trading volume cutoff is 20K, about 0.12% of the total. We might see volumes plummet, making it tough to maintain even that 20K level.
Keep an eye on trading opportunities; we have some time with delisting risks, but low trading volume could lead to being booted from the KOSPI 200 and Global Index.
This sell-off could spike short-term volatility and create great entry points for trading, especially after the court approved the buyback tender, denying MBK's injunction.


Entry Opportunities from Delisting Risk Due to Korea Zinc's Post-Buyback Volume Drying Up

<ul>
<li>NPS is now viewing their voting rights on Korea Zinc purely from a returns angle, shifting from earlier expectations of siding with Choi due to political pressure.</li>
<li>We need a tendering strategy for a 20% proration risk, focusing on when MBK will buy that extra 3.7% stake to cut losses on untendered shares.</li>
<li>MBK will aim to buy leftover shares cheaply. Their approach depends on the progress of Choi and Trafigura's talks</li>
</ul>


NPS is now viewing their voting rights on Korea Zinc purely from a returns angle, shifting from earlier expectations of siding with Choi due to political pressure.
We need a tendering strategy for a 20% proration risk, focusing on when MBK will buy that extra 3.7% stake to cut losses on untendered shares.
MBK will aim to buy leftover shares cheaply. Their approach depends on the progress of Choi and Trafigura's talks


Need a Game Plan to Tackle Korea Zinc's Buyback Tender with a 20% Proration Risk

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months after treasury shares acquisition.</li>
<li>It would be nearly impossible for Korea Zinc to sell 2.4% of its treasury stock to an external friendly force and transform it into a friendly stake by February 2025.</li>
<li>Although MBK/Young Poong Alliance has the advantage right now in this M&amp;A battle for Korea Zinc, it is by no means over.</li>
</ul>


Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months after treasury shares acquisition.
It would be nearly impossible for Korea Zinc to sell 2.4% of its treasury stock to an external friendly force and transform it into a friendly stake by February 2025.
Although MBK/Young Poong Alliance has the advantage right now in this M&amp;A battle for Korea Zinc, it is by no means over.


Korea Zinc's 2.4% Treasury Shares - Devil Is In the Legal Loophole

<ul>
<li>We discuss the next steps in the fight for the control of Korea Zinc, after the completion of the tender offer by the MBK Partners and Young Poong alliance. </li>
<li>After the tender offer, MBK and Young Poong's stake in Korea Zinc increased from 33.13% to 38.47%, coming close to more than half of the voting rights.</li>
<li>We continue to believe that at current stage, MBK/Young Poong alliance has the advantage in the fight for the control of Korea Zinc. </li>
</ul>


We discuss the next steps in the fight for the control of Korea Zinc, after the completion of the tender offer by the MBK Partners and Young Poong alliance. 
After the tender offer, MBK and Young Poong's stake in Korea Zinc increased from 33.13% to 38.47%, coming close to more than half of the voting rights.
We continue to believe that at current stage, MBK/Young Poong alliance has the advantage in the fight for the control of Korea Zinc. 


Scenario Analysis of Korea Zinc's Share Buyback, Cancellation, and Tender Offer + NPS's Five Options

<ul>
<li>Korea Zinc raised the share buyback and tender offer price from 830,000 won to 890,000 won. Korea Zinc's share price closed up by only 0.6% today to 794,000 won. </li>
<li>As a result, the amount of capital involved in this share buyback and tender offer would increase from 2.7 trillion won to 3.2 trillion won.</li>
<li>Despite higher share buyback/tender offer of Korea Zinc by Choi family, we believe that this fight for the control of Korea Zinc is increasingly in favor of MBK/Jang family. </li>
</ul>


Korea Zinc raised the share buyback and tender offer price from 830,000 won to 890,000 won. Korea Zinc's share price closed up by only 0.6% today to 794,000 won. 
As a result, the amount of capital involved in this share buyback and tender offer would increase from 2.7 trillion won to 3.2 trillion won.
Despite higher share buyback/tender offer of Korea Zinc by Choi family, we believe that this fight for the control of Korea Zinc is increasingly in favor of MBK/Jang family. 


Korea Zinc Raises Share Buyback and Tender Offer Price to 890,000 Won

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
Market Cap (USDm)	0.00
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Korea Zinc (010130 KS)

Entry Opportunities from Delisting Risk Due to Korea Zinc's Post-Buyback Volume Drying Up

This post explores trading entry opportunities that could pop up from the delisting risk linked to Korea Zinc's trading volume drying up after the...

Sanghyun Park

Need a Game Plan to Tackle Korea Zinc's Buyback Tender with a 20% Proration Risk

This post explains why we need a game plan for Korea Zinc's buyback tender offer, keeping that 20% proration risk in mind.

Sanghyun Park

Korea Zinc's 2.4% Treasury Shares - Devil Is In the Legal Loophole

Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Entry Opportunities from Delisting Risk Due to Korea Zinc's Post-Buyback Volume Drying Up

This post explores trading entry opportunities that could pop up from the delisting risk linked to Korea Zinc's trading volume drying up after the...

Sanghyun Park

Need a Game Plan to Tackle Korea Zinc's Buyback Tender with a 20% Proration Risk

This post explains why we need a game plan for Korea Zinc's buyback tender offer, keeping that 20% proration risk in mind.

Sanghyun Park

Korea Zinc's 2.4% Treasury Shares - Devil Is In the Legal Loophole

Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months...

Douglas Kim

Scenario Analysis of Korea Zinc's Share Buyback, Cancellation, and Tender Offer + NPS's Five Options

We discuss the next steps in the fight for the control of Korea Zinc, after the completion of the tender offer by the MBK Partners and Young Poong...

Douglas Kim

Korea Zinc Raises Share Buyback and Tender Offer Price to 890,000 Won

MBK acquired 5.34% additional shares of Korea Zinc through its tender offer. MBK alliance’s stake in Korea Zinc increased from 33.13% to 38.47%....

Douglas Kim