Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

Ssangyong Cement Industrial / Event-Driven

<ul>
<li>On 4 February, the local media reported that Hahn &amp; Co private equity firm is launching a tender offer on the remaining shares of Ssangyong Cement Industrial (003410 KS) (Ssangyong C&amp;E).</li>
<li>Tender offer price is 7,000 won (9.2% higher than the closing price on 2 February) and the tender offer amount is 702 billion won. </li>
<li>We believe Ssangyong C&amp;E's shares are likely close to the tender offer price today. We believe there is higher probability of Hahn &amp; Co successfully completing this tender offer. </li>
</ul>


On 4 February, the local media reported that Hahn &amp; Co private equity firm is launching a tender offer on the remaining shares of Ssangyong Cement Industrial (003410 KS) (Ssangyong C&amp;E).
Tender offer price is 7,000 won (9.2% higher than the closing price on 2 February) and the tender offer amount is 702 billion won. 
We believe Ssangyong C&amp;E's shares are likely close to the tender offer price today. We believe there is higher probability of Hahn &amp; Co successfully completing this tender offer. 


Hahn & Co Launches a Tender Offer on Remaining Shares of Ssangyong C&E

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Today, 5 February, PE-outfit Hahn &amp; Co commenced its Tender Offer for the 20.1% of shares not held in cement manufacturer <strong><a href="https://www.smartkarma.com/entities/ssangyong-cement-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:9345:1" rel="noopener">Ssangyong C&amp;E (003410 KS)</a></strong>.</li>
<li>The Tender Offer price is ₩7,000/share, a 9.2% premium to last close; although shares <em>did</em> gain ~12.2% just prior to the Offer.</li>
<li>There is no minimum acceptance condition. Hahn &amp; Co will purchase all shares tendered. Payment is the 8 March. This will trade tight. </li>
</ul>


Today, 5 February, PE-outfit Hahn &amp; Co commenced its Tender Offer for the 20.1% of shares not held in cement manufacturer Ssangyong C&amp;E (003410 KS).
The Tender Offer price is ₩7,000/share, a 9.2% premium to last close; although shares did gain ~12.2% just prior to the Offer.
There is no minimum acceptance condition. Hahn &amp; Co will purchase all shares tendered. Payment is the 8 March. This will trade tight. 


Ssangyong C&E (003410 KS): Hahn & Co's Tender Offer

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.

Lotte Non Life Insurance Co / Event-Driven

<ul>
<li>There is a high likelihood of information leaking through the lead securities firm when the tender offer prospectus is provided to branches about three days before the disclosure.</li>
<li>With the FSS's stricter stance, tender offer candidates may act swiftly before new regulations, prompting attention to potential surges in tender offers.</li>
<li>Our approach is clear: identify short-term tender offer candidates, monitor trading volumes for spikes, and use the three-day pre-disclosure surge to time our positions effectively.</li>
</ul>


There is a high likelihood of information leaking through the lead securities firm when the tender offer prospectus is provided to branches about three days before the disclosure.
With the FSS's stricter stance, tender offer candidates may act swiftly before new regulations, prompting attention to potential surges in tender offers.
Our approach is clear: identify short-term tender offer candidates, monitor trading volumes for spikes, and use the three-day pre-disclosure surge to time our positions effectively.


Chronic Insider Trading in the Korean Tender Offer Market & Time Positions for Short-Term Targets

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>There will be 6 additions and 6 deletions for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> at the June rebalance that will be implemented on 13 June.</li>
<li>The index committee has used a boatload of discretion in the inclusion of <a href="https://www.smartkarma.com/entities/cosmoam-t-co-ltd" target="_blank" data-smartkarma-citation="entities:10360:1" rel="noopener">CosmoAM&amp;T (005070 KS)</a> and the deletion of some of the stocks.</li>
<li>The adds and deletes from the Information Technology sector will also have passive flow from the sector ETF and will increase the impact of the changes.</li>
</ul>


There will be 6 additions and 6 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the June rebalance that will be implemented on 13 June.
The index committee has used a boatload of discretion in the inclusion of CosmoAM&amp;T (005070 KS) and the deletion of some of the stocks.
The adds and deletes from the Information Technology sector will also have passive flow from the sector ETF and will increase the impact of the changes.


KOSPI200 Index Rebalance: Index Committee Knows Best; Cosmo AM&T the Winner

Quantitative Equity Analyst, DMA

Charlotte van Tiddens, CFA

Quantitative Equity Analyst

Technology-First Company

DMA is a technology-first company that provides an end-to-end SaaS solution to institutional investors. DMA enables regulated entities like asset managers, wealth managers, investment managers and financial advisors to connect their front and back office, break silos and reduce headcount.

<ul>
<li>The KRX have announced the index changes for the KOSPI200 June review.</li>
<li>The index will be rebalanced in the closing auction on Thursday the 13th of June.</li>
<li>There will be 6 additions to the index and 6 deletions.</li>
</ul>


The KRX have announced the index changes for the KOSPI200 June review.
The index will be rebalanced in the closing auction on Thursday the 13th of June.
There will be 6 additions to the index and 6 deletions.


KOSPI200 June '24 Rebalance: Index Changes Released, 6 Additions & 6 Deletions

South Korea

Hanil Cement co.,Ltd. operates as a cement manufacturing company. The Company produces and sells cement, special cement, ready mixed concrete products, high solidity admixture, and other products. Hanil Cement markets its products throughout Korea.

Hanil Holdings Co.,Ltd. manufactures cement products. The Company produces and sells cement, ready-mixed concrete, ready-mixed dry mortar, and other related products. Hanil Holdings also provides information technology services and construction services.

Asia Cement Co., Ltd. manufactures cement and aggregate products.  The Company produces and sells cement, ready-mix concrete, and dry mortar. Asia Cement offers its products to construction industry in Korea.

SAMPYO Cement Co., Ltd. manufactures and distributes cement products. The Company produces slag cement, low heat cement, and other related products. SAMPYO Cement markets its products worldwide.

Eugene Corp. manufactures and markets ready mixed concrete and asphalt concrete. The Company handles pavement works and constructs commercial and residential buildings.

Dong Won Co., Ltd. owns and operates coal mines in South Korea.  The Company's products include hard coal for industrial and household uses.  Dong Won also develops overseas oil and gas fields, especially in South America.

Hanil Hyundai Cement Co.,Ltd manufactures and distributes cement products. The Company produces portland cement, slag cement, and other related products. Hanil Hyundai Cement also operates traveler accommodation businesses.

Sungshin Cement Co., Ltd. manufactures cement, ready-mixed concrete, clinker, and dry ready-mixed cement mortar.  The Company provides its products mainly to domestic market.

Korea Petroleum Industrial Co., Ltd. manufactures and markets asphalt used in constructions.  The Company also produces solvents, waterproofing sheets, and synthetic resins for the building contractors and manufacturers of paint, tire, and pharmaceuticals.  In addition, Korea Petroleum Industrial distributes gasoline, kerosene, and other chemicals.

Baek Kwang Mineral Products Co., Ltd. manufactures quicklime, calcium hydroxide, granular calcium oxide, and calcium hydroxide fertilizer.

The Ramco Cements Limited manufactures cement, ready mix concrete and dry mix products.  The Company also exports  cement and owns and operates a private sector wind mill power generating farm.

Gansu Qilianshan Cement Group Co.,Ltd manufactures cement products. The Company produces portland cements, low alkali cements, sulphate resistant cements, cement clinkers, and other products. Gansu Qilianshan Cement Group also produces cement equipment.

China Resources Cement Holdings Limited, through its subsidiaries, produces, distributes and sells cement, clinker and concrete.

Goldsun Building Materials Co., Ltd. manufactures building materials. The Company produces pre-mixed concrete, corrugated asbestos sheets, and concrete products. The Company also operates in the real estate development business.

Taiwan Goldsun Building Materials (2504 TT)

PT Semen Indonesia (Persero) Tbk manufactures cement including portland cement, oil well cement, and mixed cement. Through its subsidiaries, the Company also develops and operates an industrial estate, mines limestone and clay, and packages and distributes cement.

United States Lime & Minerals, Inc. supplies lime and limestone products to the steel, paper, agriculture, environmental protection, and construction industries.  The Company operates plants in Texas and Arkansas.

Vicat S.A. manufactures and sells cements, ready-mix concrete, aggregates and concrete pipes, as well as stucco and mortar for use in building construction internationally.  The Company also produces a variety of papers, medium-to-large capacity paper bags and chemicals and provides freight transportation services.

BBMG Corporation has operation in manufacturing and sales of cement and modern building materials. The Company also operates in property development, property investment and provision of property management services in China.

CSG Holding Co. Ltd.  manufactures raw sheets of high-grade float glass, archite ctural glass, delicacy glass, automotive glass, new-typed electronic components, and structure ceramic materials. The Company also operates in real estate development.

Cementos Argos SA is a cement and concrete producer and marketer, covering  several markets such as Colombia, Caribbean and Central America, and United  States.

Ssangyong Cement Industrial Co., Ltd. produces cement and ready-mixed concrete. The Company also manufactures fine ceramics for industrial uses and ferrite magnets for components used in audio equipment.  In addition, Ssangyong Cement Industrial develops housing, plant engineering, environmental resources, and leisure businesses.

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Ssangyong Cement Industrial (003410 KS)

Hahn & Co Launches a Tender Offer on Remaining Shares of Ssangyong C&E

The deadline period for the tender offer of Ssangyong C&E ends on 6 March. Tender offer price is 7,000 won. Current price is 6,970 won. Even if the...

Douglas Kim

Ssangyong C&E (003410 KS): Hahn & Co's Tender Offer

Currently trading (expectedly) tight at a gross spread of 1%. If not already in, with taxes in mind, there's not a lot of juice at these levels. ...

David Blennerhassett

Chronic Insider Trading in the Korean Tender Offer Market & Time Positions for Short-Term Targets

This post examines the persistent issue of insider trading in the Korean tender offer market and discusses how we should time positions for short...

Sanghyun Park

KOSPI200 Index Rebalance: Index Committee Knows Best; Cosmo AM&T the Winner

The KOSPI200 rebalance takes place at the close tomorrow. Cosmo AM&T is up ~25% since the surprise inclusion and there could be a reversal in the...

Brian Freitas

KOSPI200 June '24 Rebalance: Index Changes Released, 6 Additions & 6 Deletions

The KRX have released the index changes for the KOSPI200 June review. The index will be rebalanced in the closing auction on Thursday the 13th of...

DMA

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