Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>In this insight, we discuss the five most aggressive corporate activist firms that have been moving the Korean equity market in the past year.</li>
<li>They include Align Partners Capital Management, KCGI, Flashlight Capital Partners, Truston, and LIFE Asset Management.</li>
<li>Share prices of 15 companies that the corporate activist firms have invested in Korea are up on average 9.7% YTD, outperforming KOSPI which is up 7.1% in the same period.</li>
</ul>


In this insight, we discuss the five most aggressive corporate activist firms that have been moving the Korean equity market in the past year.
They include Align Partners Capital Management, KCGI, Flashlight Capital Partners, Truston, and LIFE Asset Management.
Share prices of 15 companies that the corporate activist firms have invested in Korea are up on average 9.7% YTD, outperforming KOSPI which is up 7.1% in the same period.


Five Most Aggressive Corporate Activists Moving the Korean Market: Align, KCGI, FCP, Truston, & LIFE

Equity Bottom-Up

<ul>
<li>Align Partners Capital Management (APCM) held a media presentation and a Q&amp;A session with both the investors community and the media today.</li>
<li>Align Partners' corporate activism of the Korean banks has been one of the biggest stories in the Korean stock market this year.</li>
<li>The Korean banks are likely to outperform the market in 1H23. Nonetheless, if there are further signs of housing price declines in Korea, this outperformance may not continue in 2H23. </li>
</ul>


Align Partners Capital Management (APCM) held a media presentation and a Q&amp;A session with both the investors community and the media today.
Align Partners' corporate activism of the Korean banks has been one of the biggest stories in the Korean stock market this year.
The Korean banks are likely to outperform the market in 1H23. Nonetheless, if there are further signs of housing price declines in Korea, this outperformance may not continue in 2H23. 


Align Partners' Corporate Activism on Korean Banks: A Media Presentation and Q&A Session

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-holdings-inc" target="_blank" data-smartkarma-citation="entities:10928:1" rel="noopener">SBI Holdings (8473 JP)</a> is still expected to buy out <a href="https://www.smartkarma.com/entities/sbi-shinsei-bank-ltd" target="_blank" data-smartkarma-citation="entities:16897:1" rel="noopener">SBI Shinsei Bank (8303 JP)</a> minorities sooner rather than later</li>
<li>Not one to rest on its laurels, Hancock immediately bumped its Offer for <a href="https://www.smartkarma.com/entities/warrego-energy-ltd-082ab214-f4bb-4224-b321-8977486cd661" target="_blank" data-smartkarma-citation="entities:7808:1" rel="noopener">Warrego Energy (WGO AU)</a> to A$0.36/share, up from A$0.28/share, provided it gets to 40%. We need more popcorn.</li>
<li>APCM reckons Korean banks can pay out more than 50% of net income to their shareholders annually.   </li>
</ul>



SBI Holdings (8473 JP) is still expected to buy out SBI Shinsei Bank (8303 JP) minorities sooner rather than later
Not one to rest on its laurels, Hancock immediately bumped its Offer for Warrego Energy (WGO AU) to A$0.36/share, up from A$0.28/share, provided it gets to 40%. We need more popcorn.
APCM reckons Korean banks can pay out more than 50% of net income to their shareholders annually.   


Last Week In SPACE: Shinsei Bank, Warrego Energy, Korean Bank Activism, Japfa

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>TPG and Anchor experienced EOD risk due to the recent plunge in Kakao Bank's stock price. So, they will sell shares if the current price rise continues a little further.</li>
<li>All three PEs of Shinhan Financial are currently expected to be seeking an early exit although they expressed last year that they would remain strategic shareholders.</li>
<li>Other notable targets are Hahn &amp; Co's Hanon Systems and K Car and MBK Partners' ConnectWave, likely via a phased stake sale in tranches.</li>
</ul>


TPG and Anchor experienced EOD risk due to the recent plunge in Kakao Bank's stock price. So, they will sell shares if the current price rise continues a little further.
All three PEs of Shinhan Financial are currently expected to be seeking an early exit although they expressed last year that they would remain strategic shareholders.
Other notable targets are Hahn &amp; Co's Hanon Systems and K Car and MBK Partners' ConnectWave, likely via a phased stake sale in tranches.


Potential Block Deal Targets in Korea for a Preemptive Position Buildup

<ul>
<li>On 2 January, Align Partners Capital Management (APCM) started to go activist on seven leading Korean banking group companies.</li>
<li>According to APCM, the major Korean banking groups could pay out at least half of their net income to their shareholders, which would be more than double the current levels.</li>
<li>Korean banks are trading at deep discount to global peers, now trading at PBR of 0.2~0.4x whereas global peers trade at 1.3x. </li>
</ul>


On 2 January, Align Partners Capital Management (APCM) started to go activist on seven leading Korean banking group companies.
According to APCM, the major Korean banking groups could pay out at least half of their net income to their shareholders, which would be more than double the current levels.
Korean banks are trading at deep discount to global peers, now trading at PBR of 0.2~0.4x whereas global peers trade at 1.3x. 


Align Partners Goes Activist on Seven Banking Group Companies in Korea

South Korea

Shinhan Financial Group Co., Ltd., a holding company, provides a full range of consumer and commercial banking-related financial services.  The company's main businesses include banking, securities brokerage, trust banking, and assets management to individuals, businesses, and other financial institutions.

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Shinhan Financial Group Adr (SHG US)

Five Most Aggressive Corporate Activists Moving the Korean Market: Align, KCGI, FCP, Truston, & LIFE

In this insight, we discuss the five most aggressive corporate activist firms that have been moving the Korean equity market in the past year.

Douglas Kim

Align Partners' Corporate Activism on Korean Banks: A Media Presentation and Q&A Session

Align Partners Capital Management (APCM) held a media presentation and a Q&A session with both the investors community and the media today.

Douglas Kim

Last Week In SPACE: Shinsei Bank, Warrego Energy, Korean Bank Activism, Japfa

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Potential Block Deal Targets in Korea for a Preemptive Position Buildup

This post screens potential block deal targets in Korea, which we should consider a preemptive position buildup in the short-term.

Sanghyun Park

Align Partners Goes Activist on Seven Banking Group Companies in Korea

On 2 January, Align Partners Capital Management (APCM) started to go activist on seven leading Korean banking group companies.

Douglas Kim

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