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

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

Below is the amount of inheritance tax for Samsung founding family members. They were given a five-year grace period. So, one-sixth was paid on April 30th this year, the due date of payment, and the remaining five-sixths have to be paid by the end of each year over five years.In the case of Lee Jae-yong, the total inheritance tax is ₩2.90T, and he paid ₩0.48T in April of this year. And he has to make a total of 5 payments of ₩ 0.48T for five years from the end of this year.









The inheritance tax burden for each family member
Lee Jae-yong
Hong Ra-hee
Lee Bu-jin
Lee Seo-hyun


Total
₩2.90T
₩3.10T
₩2.60T
₩2.40T

 

: Already-paid (one-sixth) at April-end of 2021
₩0.48T
₩0.52T
₩0.43T
₩0.40T


Remaining (five-sixths)
₩2.42T
₩2.58T
₩2.17T
₩2.00T


: Due at the yearend of 2021
₩0.48T
₩0.52T
₩0.43T
₩0.40T

Source: DART &amp; KRX FIND

Of course, the inheritance tax of this size is not a small amount for them either. Their wealth consists mostly of stocks. Artworks and real estate are difficult to liquidate. Most of the cash consists of dividends, but short-term cash holdings are estimated to be negligible.Below are the shares they each hold.









Stake holding in %
Lee Jae-yong
Hong Ra-hee
Lee Bu-jin
Lee Seo-hyun


Samsung Electronics Co Ltd
1.63%
2.30%
0.93%
0.93%


Samsung Electronics Co Ltd Preference Shares Non Voting
0.02%
0.03%
0.02%
0.02%


Samsung C&amp;T Corp
18.13%
0.97%
6.24%
6.24%


Samsung Life Insurance co., Ltd
10.44%
0.00%
6.92%
3.46%


Samsung SDS Co Ltd
9.20%
0.00%
3.90%
3.90%

Source: DART &amp; KRX FIND

And below is the current market value of these shares. If we look at the value of their stakes, it is enough to pay the inheritance tax.









Stake holding in value
Lee Jae-yong
Hong Ra-hee
Lee Bu-jin
Lee Seo-hyun


Samsung Electronics Co Ltd
₩6.84T
₩9.63T
₩3.89T
₩3.89T


Samsung Electronics Co Ltd Preference Shares Non Voting
₩0.01T
₩0.01T
₩0.01T
₩0.01T


Samsung C&amp;T Corp
₩4.07T
₩0.22T
₩1.40T
₩1.40T


Samsung Life Insurance co., Ltd
₩1.47T
₩0.00T
₩0.97T
₩0.49T


Samsung SDS Co Ltd
₩1.12T
₩0.00T
₩0.47T
₩0.47T



: Total
₩13.50T
₩9.87T
₩6.75T
₩6.26T

Source: DART &amp; KRX FIND

The problem, however, is to pay the inheritance tax without compromising the control of the group.First, they appear to have covered their first payment in April by using dividends and credit loans.And they recently announced that they plan to cover the second payment at the end of this year through the sale of their shares. As shown below, they seem to have carefully chosen which to sell. In the case of Lee Bu-jin and Lee Seo-hyun (the daughters), the amount to be paid in the first and second payments and the amount raised by this year are roughly the same. Hong Ra-hee (the spouse) raised money (₩2.40T) that was significantly more than the amount owed right away (₩0.96T). The reason for this has not yet been clearly disclosed.









Personal financings
Lee Jae-yong
Hong Ra-hee
Lee Bu-jin
Lee Seo-hyun


Bank lines of credit: April 2021
₩0.00T
₩1.00T
₩0.33T
₩0.39T


: Annual interest rate
-
3.79%
2.40%
2.52%


: Annual interest payment
-
₩37.92B
₩7.94B
₩9.74B


: Lenders

Woori Bank, Hana Bank, KIC, &amp; Meritz Securities
Hana Bank &amp; KIC
Hana Bank, KIC, &amp; Hana Securities



Stake disposal (trust contract): October~December 2021
₩0.00T
₩1.40T
₩0.24T
₩0.48T


: Stake for sale
-
Samsung Electronics (0.33%)
Samsung SDS (1.95%)
Samsung SDS (1.95%) &amp; Samsung Life (1.73%)


: Trust institution
-
KB Bank
KB Bank
KB Bank


: Contract date
-
2021. 10. 05
2021. 10. 05
2021. 10. 05


: Contract ends
-
2022. 04. 25
2022. 04. 25
2022. 04. 25


: Disposal deadline
-
N/A
N/A
2021. 12. 24



: Total
₩0.00T
₩2.40T
₩0.57T
₩0.87T

Source: DART

And most importantly, Lee Jae-yong hasn't raised a dime this year. He appears to have made up his first payment with only the cash he had (probably financed mainly through dividends).Therefore, the market is interested in Lee Jae-yong's financing plan to pay the upcoming inheritance tax payments, which might have been one of the reasons why the stock prices of Samsung Electronics and Samsung SDS have continued to underperform the market.In the end, Jae-Yong Lee's only options for financing are dividends, bank loans, and the sale of shares. In the case of stake sale, Samsung Electronics and Samsung SDS are the only stakes that can be sold without damaging management rights.

Samsung Lee Family Inheritance Tax Payment Situation & Suggested Trading Positions

<div><p>Kakao Pay (KP), one of South Korea’s largest payment and financial services apps, aims to raise up to US$1.3bn in its South Korean IPO. Kakao held a 55% stake prior to listing, with Ant Financial holding the balance 45% stake.</p></div><div><p>We have covered most aspects of the deal in our earlier notes:</p></div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/kakao-pay-ipo-guided-by-ant-financial-to-be-a-mini-ant" target="_blank" rel="noopener">Kakao Pay IPO - Guided by Ant Financial to be a mini Ant,</a></li>
<li><a href="https://www.smartkarma.com/insights/kakao-pay-ipo-peer-comparison-local-and-international" target="_blank" rel="noopener">Kakao Pay IPO - Peer comparison - local and international, and</a></li>
</ul></div><div><ul style="list-style-type: disc;"><li><a href="https://www.smartkarma.com/insights/kakao-pay-ipo-valuation-and-likely-impact-of-latest-announcement" target="_blank" rel="noopener">Kakao Pay IPO - Valuation and Likely Impact of Latest Announcement</a></li></ul></div><ul><li><a href="https://www.smartkarma.com/insights/kakao-pay-ipo-low-end-still-appear-reasonable-but-stock-will-more-likely-be-driven-by-sentiment" target="_blank" rel="noopener">Kakao Pay IPO - Low-End Still Appear Reasonable but Stock Will More Likely Be Driven by Sentiment</a></li></ul><div><p>In this note we will compare KP with its sister company, Kakao Bank.</p></div>

Kakao Pay (KP), one of South Korea’s largest payment and financial services apps, aims to raise up to US$1.3bn in its South Korean IPO. Kakao held a 55% stake prior to listing, with Ant Financial holding the balance 45% stake.We have covered most aspects of the deal in our earlier notes:
Kakao Pay IPO - Guided by Ant Financial to be a mini Ant,
Kakao Pay IPO - Peer comparison - local and international, and
Kakao Pay IPO - Valuation and Likely Impact of Latest AnnouncementKakao Pay IPO - Low-End Still Appear Reasonable but Stock Will More Likely Be Driven by SentimentIn this note we will compare KP with its sister company, Kakao Bank.

Kakao Pay IPO - Comparison with Kakao Bank and an Alternate Look at Valuation

<p>Below are the details of the disposal trust agreement that Samsung's Lee family members newly signed with the trust institution.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Disposal trust contract"}'>Disposal trust contract</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Lee Bu-jin (daughter)"}'>Lee Bu-jin (daughter)</td>
<td colspan="2" style="text-align: center;" data-sheets-value='{"1":2,"2":"Lee Seo-hyun (daughter)"}'>Lee Seo-hyun (daughter)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Hong Ra-hee (spouse)"}'>Hong Ra-hee (spouse)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Company"}'>Company</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Samsung SDS Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Samsung SDS</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Samsung Life Insurance co., Ltd"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Samsung Life Insurance</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Samsung SDS Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Samsung SDS</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Samsung Electronics</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"018260"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='="018260"'>018260</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"032830"}' data-sheets-formula='="032830"'>032830</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"018260"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='="018260"'>018260</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"005930"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='="005930"'>005930</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Disposition trust amount"}'>Disposition trust amount (shares)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1509430}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,509,430</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3459490}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,459,490</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1509430}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,509,430</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":19941860}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>19,941,860</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"% of the shares out"}'><strong>% of the shares out</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.019507274696359937}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]/googlefinance(R[-2]C[0], "shares")'><strong>1.95%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.01729745}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]/googlefinance(R[-2]C[0], "shares")'><strong>1.73%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.019507274696359937}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]/googlefinance(R[-2]C[0], "shares")'><strong>1.95%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.003340466731070464}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]/googlefinance(R[-2]C[0], "shares")'><strong>0.33%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":": Value"}'><strong>: Value (at the last close)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.242263515}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=R[-2]C[0]*googlefinance(R[-3]C[0], "price")/1000000000000'><strong>₩0.24T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.247353535}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=R[-2]C[0]*googlefinance(R[-3]C[0], "price")/1000000000000'><strong>₩0.25T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.242263515}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=R[-2]C[0]*googlefinance(R[-3]C[0], "price")/1000000000000'><strong>₩0.24T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.42584299}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=R[-2]C[0]*googlefinance(R[-3]C[0], "price")/1000000000000'><strong>₩1.43T</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Trust institution"}'>Trust institution</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KB Bank"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}'>KB Bank</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KB Bank"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}'>KB Bank</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KB Bank"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}'>KB Bank</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KB Bank"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}'>KB Bank</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Contract date"}'>Contract date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44474}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'>2021. 10. 05</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44474}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'>2021. 10. 05</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44474}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'>2021. 10. 05</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44474}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'>2021. 10. 05</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Contract ends"}'>Contract ends</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44676}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'>2022. 04. 25</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44676}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'>2022. 04. 25</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44676}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'>2022. 04. 25</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44676}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'>2022. 04. 25</td>
</tr>
<tr><td colspan="5"></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Disposal deadline"}'><strong>Disposal deadline</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"N/A"}'><strong>N/A</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44554}' data-sheets-numberformat='{"1":5,"2":"yyyy. mm. dd","3":1}'><strong>2021. 12. 24</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"N/A"}'><strong>N/A</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"N/A"}'><strong>N/A</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Purpose"}'><strong>Purpose</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"For inheritance tax payment"}'><strong>For inheritance tax payment</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"For inheritance tax payment"}'><strong>For inheritance tax payment</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"For inheritance tax payment"}'><strong>For inheritance tax payment</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"For inheritance tax payment"}'><strong>For inheritance tax payment</strong></td>
</tr>
<tr><td colspan="5" data-sheets-value='{"1":2,"2":"Source: KRX FIND &amp; Korean NTS"}'>Source: KRX KIND</td></tr>
</tbody>
</table><div class="content-highlight">
<p><strong>Key takeaways</strong></p>
<ul>
<li><strong>All the family members, except Lee Jae-yong, disclosed they had newly signed a disposal trust agreement on the same date (October 5) with the same trust institution, KB Bank.</strong></li>
<li><strong>However, all of these regulatory filings were published after the market closed last Friday. That is, the market only found it out late Friday, so whatever impact will likely be reflected in the price next trading day, which is next Tuesday.</strong></li>
<li><strong>All four trust contracts expire on April 25 next year. However, it does not necessarily mean that the deadline for the stake sale is April 25.</strong></li>
<li><strong>Only Samsung Life Insurance disclosed the deadline for sale to be December 24 of this year. But it strongly suggests that this December 24 will likely be the deadline for the other trust contrasts as well.</strong></li>
<li><strong>All four trust contracts clearly stated that the purpose was to pay inheritance tax.</strong></li>
</ul>
</div>

Below are the details of the disposal trust agreement that Samsung's Lee family members newly signed with the trust institution.









Disposal trust contract
Lee Bu-jin (daughter)
Lee Seo-hyun (daughter)
Hong Ra-hee (spouse)


Company
Samsung SDS
Samsung Life Insurance
Samsung SDS
Samsung Electronics


Ticker
018260
032830
018260
005930


Disposition trust amount (shares)
1,509,430
3,459,490
1,509,430
19,941,860


% of the shares out
1.95%
1.73%
1.95%
0.33%


: Value (at the last close)
₩0.24T
₩0.25T
₩0.24T
₩1.43T


Trust institution
KB Bank
KB Bank
KB Bank
KB Bank


Contract date
2021. 10. 05
2021. 10. 05
2021. 10. 05
2021. 10. 05


Contract ends
2022. 04. 25
2022. 04. 25
2022. 04. 25
2022. 04. 25



Disposal deadline
N/A
2021. 12. 24
N/A
N/A


Purpose
For inheritance tax payment
For inheritance tax payment
For inheritance tax payment
For inheritance tax payment

Source: KRX KIND


Key takeaways

All the family members, except Lee Jae-yong, disclosed they had newly signed a disposal trust agreement on the same date (October 5) with the same trust institution, KB Bank.
However, all of these regulatory filings were published after the market closed last Friday. That is, the market only found it out late Friday, so whatever impact will likely be reflected in the price next trading day, which is next Tuesday.
All four trust contracts expire on April 25 next year. However, it does not necessarily mean that the deadline for the stake sale is April 25.
Only Samsung Life Insurance disclosed the deadline for sale to be December 24 of this year. But it strongly suggests that this December 24 will likely be the deadline for the other trust contrasts as well.
All four trust contracts clearly stated that the purpose was to pay inheritance tax.



Samsung Founding Family's Stake Sale: Impact on SamE Share Buyback Vs. Special Dividend

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<p>It was announced today that Samsung's Lee Jae-Yong will get out of jail as the Korean government will release him on parole this week after he spent 18 months in prison. The total original sentence time was for 30 months so Lee will no longer need to serve the remaining one year of jail time. Lee joins 800+ other convicts who will be released from various prisons in Korea on Friday. </p><p>In our view, this could <strong>accelerate</strong> some of Samsung's major investment plans globally and could also have a positive impact on the Samsung Group companies. Lee Jae-Yong joins a long-list of Korean chaebol family members that have served some time in prison. </p><div class="content-highlight">
<p>Overall, we believe that there could be more investors' interest in Samsung C&amp;T with the release of Lee Jae-Yong from jail. Although he remains a figurehead, the persistent negative press on him will likely be relieved and there could be more pressure to improve various ESG metrics of the Samsung Group companies even further. As such, we believe this will have a positive impact on the Samsung Group companies, especially on Samsung C&amp;T. </p>
<p>Our <strong>base case NAV</strong> valuation of Samsung C&amp;T is 202,593 won per share, representing 42.2% higher than current share price. In our base case valuation, we used the current market cap/prices of its ownership in major affiliates including Samsung Electronics, Samsung Biologics, and Samsung Life Insurance. We also used a 40% holdco discount in our valuations. </p>
</div>

It was announced today that Samsung's Lee Jae-Yong will get out of jail as the Korean government will release him on parole this week after he spent 18 months in prison. The total original sentence time was for 30 months so Lee will no longer need to serve the remaining one year of jail time. Lee joins 800+ other convicts who will be released from various prisons in Korea on Friday. In our view, this could accelerate some of Samsung's major investment plans globally and could also have a positive impact on the Samsung Group companies. Lee Jae-Yong joins a long-list of Korean chaebol family members that have served some time in prison. 
Overall, we believe that there could be more investors' interest in Samsung C&amp;T with the release of Lee Jae-Yong from jail. Although he remains a figurehead, the persistent negative press on him will likely be relieved and there could be more pressure to improve various ESG metrics of the Samsung Group companies even further. As such, we believe this will have a positive impact on the Samsung Group companies, especially on Samsung C&amp;T. 
Our base case NAV valuation of Samsung C&amp;T is 202,593 won per share, representing 42.2% higher than current share price. In our base case valuation, we used the current market cap/prices of its ownership in major affiliates including Samsung Electronics, Samsung Biologics, and Samsung Life Insurance. We also used a 40% holdco discount in our valuations. 


Samsung's Lee Jae-Yong Gets Out of Jail (Again) & NAV Analysis of Samsung C&T

South Korea

Samsung C&T Corporation conducts diversified business support services and resort operation activities. The Company offers a range of services in areas including clothing retail, construction, energy, real estate, food service, and resort accommodations. Samsung C&T also operates a resort with amusement rides, a zoo, water park, golf clubs, and restaurants.

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Samsung C&T (028260 KS)

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

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Kakao Pay IPO - Comparison with Kakao Bank and an Alternate Look at Valuation

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Samsung's Lee Jae-Yong Gets Out of Jail (Again) & NAV Analysis of Samsung C&T

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