Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The founder and former chairman and CEO of <a href="https://www.smartkarma.com/entities/nexon-co-ltd" target="_blank" data-smartkarma-citation="entities:16032:1" rel="noopener">Nexon (3659 JP)</a> passed away according to both Nexon and his holding company NXC. Both announced it late afternoon 1 March.</li>
<li>NXC - the near-parent  (47+% stake) of Nexon tried to sell Nexon/NXC in H1 2019 to no avail. Since then, profits have rebounded somewhat, and investments have multiplied. </li>
<li>The estate may wish to sell Nexon shares, or its entire stake, at some point near-term.</li>
</ul>


The founder and former chairman and CEO of Nexon (3659 JP) passed away according to both Nexon and his holding company NXC. Both announced it late afternoon 1 March.
NXC - the near-parent  (47+% stake) of Nexon tried to sell Nexon/NXC in H1 2019 to no avail. Since then, profits have rebounded somewhat, and investments have multiplied. 
The estate may wish to sell Nexon shares, or its entire stake, at some point near-term.


Nexon - Founder Kim Jung-Ju Passes, Raises Question if Nexon Deal Is Back In Play

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>As reported by a local news outlet (YTN), the Korean government will soon list the NXC stake on Onbid, the government's online auction system (www.onbid.co.kr).</li>
<li>If the right buyer acquires the 30% stake in NXC, the family members may also sell their stake, leading to an unexpected price impact for Nexon (3659 JP).</li>
<li>Timing is critical, and the Korean government must aim to list the stake on Onbid as soon as possible, given its current revenue shortfall issue.</li>
</ul>


As reported by a local news outlet (YTN), the Korean government will soon list the NXC stake on Onbid, the government's online auction system (www.onbid.co.kr).
If the right buyer acquires the 30% stake in NXC, the family members may also sell their stake, leading to an unexpected price impact for Nexon (3659 JP).
Timing is critical, and the Korean government must aim to list the stake on Onbid as soon as possible, given its current revenue shortfall issue.


Heads Up: Selling Event of a 30% Stake in NXC (Nexon Parent Company) Is Coming Soon

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>We discuss the potential additions and deletions in the upcoming June 2022 KOSDAQ150 rebalance. The ongoing war in Ukraine has impacted the potential additions/deletion candidates in KOSDAQ150.</li>
<li>The recent new additions (among potential inclusions) include Nexon GT Co Ltd (041140 KS) and Netgames (225570 KS), and SNK Corp (950180 KS).</li>
<li>The top 10 potential exclusions are down on average 25.7% YTD, underperforming KOSDAQ which is down 9.6% in the same period. </li>
</ul>


We discuss the potential additions and deletions in the upcoming June 2022 KOSDAQ150 rebalance. The ongoing war in Ukraine has impacted the potential additions/deletion candidates in KOSDAQ150.
The recent new additions (among potential inclusions) include Nexon GT Co Ltd (041140 KS) and Netgames (225570 KS), and SNK Corp (950180 KS).
The top 10 potential exclusions are down on average 25.7% YTD, underperforming KOSDAQ which is down 9.6% in the same period. 


KOSDAQ150 Rebalance in June 2022 Amid Ongoing War in Ukraine

<ul>
<li>There are three ways families can settle inheritance tax: 1. payment in Kind, 2. direct sale of the NXC stake, and 3. NXC sells its stake in Nexon Japan.</li>
<li>They have different ramifications from an investment point of view, and the third option is probably the one that the market desires most.</li>
<li>If the family goes for the third option, they will likely sell all of NXC's Nexon Japan stake (47.89%), which will lead to a TOB to Nexon Japan minority shareholders.</li>
</ul>


There are three ways families can settle inheritance tax: 1. payment in Kind, 2. direct sale of the NXC stake, and 3. NXC sells its stake in Nexon Japan.
They have different ramifications from an investment point of view, and the third option is probably the one that the market desires most.
If the family goes for the third option, they will likely sell all of NXC's Nexon Japan stake (47.89%), which will lead to a TOB to Nexon Japan minority shareholders.


Three Ways of Settling Nexon Inheritance Tax Payment: Each Way's Ramifications

<ul>
<li>We should pay the most attention to what choices and decisions the bereaved family will make concerning the stakes and management rights of the deceased in NXC.</li>
<li>This opens the possibility that the KJJ's stake sale event in 2019 will happen again in the foreseeable future.</li>
<li>Under these circumstances, there is a possibility that short-term momentum trading aimed at tender offers to minority shareholders following the sale of Nexon's major shareholder stake will surge.</li>
</ul>


We should pay the most attention to what choices and decisions the bereaved family will make concerning the stakes and management rights of the deceased in NXC.
This opens the possibility that the KJJ's stake sale event in 2019 will happen again in the foreseeable future.
Under these circumstances, there is a possibility that short-term momentum trading aimed at tender offers to minority shareholders following the sale of Nexon's major shareholder stake will surge.


The Passing of Nexon Founder KJJ & Controlling Stake Sale Event 2.0

South Korea

Nexon GT Co., Ltd. develops games. The Company develops online games, mobile games, and other related games. Nexon GT markets its products throughout South Korea.

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Nexon GT Co Ltd (041140 KS)

Nexon - Founder Kim Jung-Ju Passes, Raises Question if Nexon Deal Is Back In Play

Nexon's founder Kim Jung-ju has passed away. This raises the question of the disposition of the 47+% stake belonging to his holding company NXC. If...

Travis Lundy

Heads Up: Selling Event of a 30% Stake in NXC (Nexon Parent Company) Is Coming Soon

This post delivers today's news that the South Korean Ministry of Strategy and Finance is entering the process of selling its 30% stake in NXC...

Sanghyun Park

KOSDAQ150 Rebalance in June 2022 Amid Ongoing War in Ukraine

We discuss the potential additions and deletions in the upcoming June 2022 KOSDAQ150 rebalance. The ongoing war in Ukraine has impacted the...

Douglas Kim

Three Ways of Settling Nexon Inheritance Tax Payment: Each Way's Ramifications

This post examines three ways of the Nexon family settling the inheritance tax payment. They have different ramifications from a trading perspective.

Sanghyun Park

The Passing of Nexon Founder KJJ & Controlling Stake Sale Event 2.0

We should pay the most attention to what choices and decisions the bereaved family will make concerning the stakes and management rights of the...

Sanghyun Park

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