Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Equity Bottom-Up

How would Samsung and Harman make synergies? This is the question that everyone is wondering about. Of course, this would not be such a difficult question either. Everyone knows "Smart Car" would be the keyword in this deal. Yes, Samsung acquired Harman mainly because it wanted to provide smart car solutions (automotive electronic components and solutions) to the world's top-tier car makers in a much more efficient way. But there are still some people wondering about Samsung's true intention. That is, there is a suspicion that Samsung itself may try to become an EV (electric vehicle) maker. Is it really so? Even if Samsung does not really want to be an EV maker, to what extent is Samsung planning to build its own automotive electronic component business in conjunction with Harman? On the surface, Samsung+Harman duo is not posing many difficult questions. But once we dig it a little deeper, we will soon find that there are several complicated aspects behind the matter.

How would Samsung and Harman make synergies? This is the question that everyone is wondering about. Of course, this would not be such a difficult question either. Everyone knows "Smart Car" would be the keyword in this deal. Yes, Samsung acquired Harman mainly because it wanted to provide smart car solutions (automotive electronic components and solutions) to the world's top-tier car makers in a much more efficient way. But there are still some people wondering about Samsung's true intention. That is, there is a suspicion that Samsung itself may try to become an EV (electric vehicle) maker. Is it really so? Even if Samsung does not really want to be an EV maker, to what extent is Samsung planning to build its own automotive electronic component business in conjunction with Harman? On the surface, Samsung+Harman duo is not posing many difficult questions. But once we dig it a little deeper, we will soon find that there are several complicated aspects behind the matter.

Event-Driven

Details of Agreement and Plan of Merger Between Samsung Electronics America and Harman International Industries<table class="table table-striped"><tbody>
<tr>
<td>Item</td>
<td>Detail</td>
</tr>
<tr>
<td>New Share Issuing Company</td>
<td>Harman International Industries, Incorporated</td>
</tr>
<tr>
<td>CEO</td>
<td>Dinesh Paliwal</td>
</tr>
<tr>
<td>Capital</td>
<td>₩1.64tril</td>
</tr>
<tr>
<td>Number of New Shares To Be Issued</td>
<td>101,157,320</td>
</tr>
<tr>
<td>Acquisition Amount</td>
<td>₩9.34tril (US$112 Per Share)</td>
</tr>
<tr>
<td>Stake %</td>
<td>100%</td>
</tr>
<tr>
<td>Acquisition Type</td>
<td>All Cash</td>
</tr>
<tr>
<td>Put/Call Option</td>
<td>N/A</td>
</tr>
</tbody></table><ul><li>Samsung Electronics America, Inc. ("SEA") will acquire 100% stake in Harman International through a merger of SEA's newly-established…</li></ul>

Details of Agreement and Plan of Merger Between Samsung Electronics America and Harman International Industries

Item
Detail


New Share Issuing Company
Harman International Industries, Incorporated


CEO
Dinesh Paliwal


Capital
₩1.64tril


Number of New Shares To Be Issued
101,157,320


Acquisition Amount
₩9.34tril (US$112 Per Share)


Stake %
100%


Acquisition Type
All Cash


Put/Call Option
N/A

Samsung Electronics America, Inc. ("SEA") will acquire 100% stake in Harman International through a merger of SEA's newly-established…

Details of Samsung-Harman Merger Agreement

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

<ul><li>The biggest SGX-listed stocks that respectively represent the hardware, software and semiconductors industries are Venture Corporation, Silverlake Axis and UMS Holdings. </li><li>These three stocks have averaged a 19.2% total return in the 2016 year-to-date.</li><li>These three current leaders of the Sector have also had to embrace innovation and transformation for the last 25-30 years. The foundations of the trio track back to the 1980s.</li></ul>

The biggest SGX-listed stocks that respectively represent the hardware, software and semiconductors industries are Venture Corporation, Silverlake Axis and UMS Holdings. These three stocks have averaged a 19.2% total return in the 2016 year-to-date.These three current leaders of the Sector have also had to embrace innovation and transformation for the last 25-30 years. The foundations of the trio track back to the 1980s.

Innovative Transformation of Singapore's Technology Sector

WSJ reported that Samsung's GS8 will likely be released as late as April next year instead of next year's MWC (February). Traditionally, Samsung has released most of Galaxy S series at MWC. WSJ said this news was from one of Samsung's executives, who was quoted as saying that this delay is much needed to ensure that GS8 is a hit with consumers.<div style="text-align: left;" class="content-caption"><a href="http://www.wsj.com/articles/samsung-tests-button-for-improved-ai-feature-on-galaxy-s8-phone-1478516959" target="_blank">Samsung Tests Button for Improved AI Feature on Galaxy S8 Phone</a> (source: WSJ)</div>Obviously, this delay is quite understandable. Samsung needs to spend as much…

WSJ reported that Samsung's GS8 will likely be released as late as April next year instead of next year's MWC (February). Traditionally, Samsung has released most of Galaxy S series at MWC. WSJ said this news was from one of Samsung's executives, who was quoted as saying that this delay is much needed to ensure that GS8 is a hit with consumers.Samsung Tests Button for Improved AI Feature on Galaxy S8 Phone (source: WSJ)Obviously, this delay is quite understandable. Samsung needs to spend as much…

New Features on Samsung's GS8 & Possible Beneficiaries in Samsung Ecosystem

Small and mid-cap Asia, Thematic, Corporate Access, Glorious Day, Ltd.

Glorious Day Asia

Small and mid-cap Asia, Thematic, Corporate Access

Glorious Day, Ltd.

Global Wafer (6488 TT): Purchase of Sun Edison Semi (Semi US) will move GWC to #3 global supplier and 17% market share, after Shin-Etsu and Sumco and ahead of Siltronics (Wacker Chemie). Semi wafer prices are set to show a modest rebound on industry consolidation and no material increases in industry capacity. Industry growth and market addressing synergies from the merger offset the lack of initial profit accretion.

Global Wafer (6488 TT): Purchase of Sun Edison Semi (Semi US) will move GWC to #3 global supplier and 17% market share, after Shin-Etsu and Sumco and ahead of Siltronics (Wacker Chemie). Semi wafer prices are set to show a modest rebound on industry consolidation and no material increases in industry capacity. Industry growth and market addressing synergies from the merger offset the lack of initial profit accretion.

Global Wafer Corp (6488 TT): Imminent Industry Consolidation a Positive; Company Visit Note Summary

South Korea

Samsung SDI Co., Ltd. specializes in developing Lithium Ion Battery (LIB) technology.  The Company also manufactures cathode ray tubes (CRTs) for televisions and computer monitors.  Samsung SDI also produces liquid crystal display (LCD) components and rechargeable batteries for cellular phones , personal digital assistants (PDAs), Energy Storage Systems and solar panels.

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Samsung SDI (006400 KS)

Future of Samsung & Harman in IoT Market

How would Samsung and Harman make synergies? This is the question that everyone is wondering about. Of course, this would not be such a difficult...

Sanghyun Park

Details of Samsung-Harman Merger Agreement

Details of Agreement and Plan of Merger Between Samsung Electronics America and Harman International Industries Samsung Electronics America, Inc....

Sanghyun Park

Innovative Transformation of Singapore's Technology Sector

The biggest SGX-listed stocks that respectively represent the hardware, software and semiconductors industries are Venture Corporation, Silverlake...

Singapore Exchange Ltd (SGX)

New Features on Samsung's GS8 & Possible Beneficiaries in Samsung Ecosystem

WSJ reported that Samsung's GS8 will likely be released as late as April next year instead of next year's MWC (February). Traditionally, Samsung...

Sanghyun Park

Global Wafer Corp (6488 TT): Imminent Industry Consolidation a Positive; Company Visit Note Summary

Global Wafer (6488 TT): Purchase of Sun Edison Semi (Semi US) will move GWC to #3 global supplier and 17% market share, after Shin-Etsu and Sumco...

Glorious Day Asia

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