Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>According to a local media outlet called ETNews, CJ ENM is considering on selling about half of its stake in Netmarble to potentially acquire the controlling stake in S.M. Entertainment.</li>
<li>Although CJ ENM is the lead candidate to acquire SM Entertainment, other contenders including Kakao Corp and Naver are not totally out of the M&amp;A race. </li>
<li>Overall, we would wait on buying CJ ENM at current levels. We think that the market is still concerned about CJ ENM overpaying for SM Entertainment.</li>
</ul>


According to a local media outlet called ETNews, CJ ENM is considering on selling about half of its stake in Netmarble to potentially acquire the controlling stake in S.M. Entertainment.
Although CJ ENM is the lead candidate to acquire SM Entertainment, other contenders including Kakao Corp and Naver are not totally out of the M&amp;A race. 
Overall, we would wait on buying CJ ENM at current levels. We think that the market is still concerned about CJ ENM overpaying for SM Entertainment.


CJ ENM: Potential Block Sale of Its Stake In Netmarble & Concerns About Corporate Reorganization

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>For this March rebalancing, the screening base date is January 28, which is the last trading day of January. So, the 3-month rebalancing review period is now done.</li>
<li>Other than LG Energy (+₩146,2B), we should pay the most attention to AfreecaTV (+1.70x), Chunbo (+0.36x), Douzone Bizon (-4.82x), and SoulBrain (-0.99x).</li>
<li>In addition, large-cap stocks such as SKIET (+0.25x), Ecopro BM (+0.10x), LG Chem (-0.62x), and Posco Chemical (-0.30x) will likely draw much attention.</li>
</ul>


For this March rebalancing, the screening base date is January 28, which is the last trading day of January. So, the 3-month rebalancing review period is now done.
Other than LG Energy (+₩146,2B), we should pay the most attention to AfreecaTV (+1.70x), Chunbo (+0.36x), Douzone Bizon (-4.82x), and SoulBrain (-0.99x).
In addition, large-cap stocks such as SKIET (+0.25x), Ecopro BM (+0.10x), LG Chem (-0.62x), and Posco Chemical (-0.30x) will likely draw much attention.


KRX K-New Deal Index Screening Period Ended: Rebalancing Changes & Passive Impacts Update

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Equity Capital Markets

<ul>
<li>Kakao Bank's six month IPO lock-up will end on 6th Feb 2022. </li>
<li>It will result in freeing up another US$2.5bn+ worth of shares held by a number of pre-IPO and local IPO investors.</li>
<li>In this note, we will talk about the upcoming lock-up expiry.</li>
</ul>


Kakao Bank's six month IPO lock-up will end on 6th Feb 2022. 
It will result in freeing up another US$2.5bn+ worth of shares held by a number of pre-IPO and local IPO investors.
In this note, we will talk about the upcoming lock-up expiry.


Kakao Bank Six-Month Lock-Up - Over US$2.5bn Stock Release Will Only Add to the Recent Rout

<ul>
<li>On 18 January, Microsoft Corp (MSFT US) announced that it will acquire Activision Blizzard (ATVI US) for $68.7 billion all-cash deal.</li>
<li>The acquisition of Activision Blizzard by Microsoft is likely to have a positive impact on the entire global game sector including in Korea. </li>
<li>This major acquisition of Activision Blizzard by Microsoft could rejuvenate the entire global game sector as it could signal greater M&amp;A interest in high-quality game companies.</li>
</ul>


On 18 January, Microsoft Corp (MSFT US) announced that it will acquire Activision Blizzard (ATVI US) for $68.7 billion all-cash deal.
The acquisition of Activision Blizzard by Microsoft is likely to have a positive impact on the entire global game sector including in Korea. 
This major acquisition of Activision Blizzard by Microsoft could rejuvenate the entire global game sector as it could signal greater M&amp;A interest in high-quality game companies.


Microsoft to Buy Activision Blizzard for $69 Billion: Impact on NCsoft, Krafton, & Netmarble

<ul>
<li>2021 has been a leapfrog year in terms of both major outbound and inbound M&amp;As in Korea.</li>
<li>Two of the biggest M&amp;A deals in 2021 include SK Hynix's acquisition of Intel's flash NAND and SSD business and Emart's purchase of Ebay Korea for $3 billion. </li>
<li>Some of the largest M&amp;A deals which could get completed in 2022 include Hanon Systems, Bodyfriend, Modern House, Hyundai LNG Shipping, and EMK.  </li>
</ul>


2021 has been a leapfrog year in terms of both major outbound and inbound M&amp;As in Korea.
Two of the biggest M&amp;A deals in 2021 include SK Hynix's acquisition of Intel's flash NAND and SSD business and Emart's purchase of Ebay Korea for $3 billion. 
Some of the largest M&amp;A deals which could get completed in 2022 include Hanon Systems, Bodyfriend, Modern House, Hyundai LNG Shipping, and EMK.  


Korea M&A Recap in 2021 - A Leapfrog Year

South Korea

Netmarble Corporation develops and publishes mobile games. The Company develops and publishes casual games, action, sports games, strategy, simulation games, and social casino games. Netmarble offers services worldwide.

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Netmarble (251270 KS)

CJ ENM: Potential Block Sale of Its Stake In Netmarble & Concerns About Corporate Reorganization

According to a local media outlet called ETNews, CJ ENM is considering on selling about half of its stake in Netmarble in a block deal to acquire...

Douglas Kim

KRX K-New Deal Index Screening Period Ended: Rebalancing Changes & Passive Impacts Update

The KRX K-New Deal Index's screening period ended last Friday. This post updates the screening results and passive impacts.

Sanghyun Park

Kakao Bank Six-Month Lock-Up - Over US$2.5bn Stock Release Will Only Add to the Recent Rout

Kakao Bank's six month IPO lock-up will end on 6th Feb 2022, releasing over US$2.5bn worth of shares. In this note, we will look at the lock-up...

Sumeet Singh

Microsoft to Buy Activision Blizzard for $69 Billion: Impact on NCsoft, Krafton, & Netmarble

Microsoft Corp announced that it will acquire Activision Blizzard for $68.7 billion all-cash deal. This is likely to have a positive impact on the...

Douglas Kim

Korea M&A Recap in 2021 - A Leapfrog Year

2021 has been a leapfrog year in terms of major M&As in Korea. Some of the largest M&A deals in 2022 could include Hanon Systems, Bodyfriend,...

Douglas Kim

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