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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

Taeyoung Engineering & Construction / Event-Driven

<p>TY Holdings announce a tender offer to the shareholders of Tae Young E&amp;C.</p><p>It is a stock swap, not a cash offer. Yes, it is a well-anticipated event to complete the holding company conversion.</p><p>The target volume is 15.6M, 40.1% of the target company's SO. So, the holding company's stake will rise from 10.6% to 50.7% (ord).</p><p>The tender begins on December 28 and runs until January 18. FYI, no shareholder record date here. That is, you can buy and tender your shares even during the tendering period.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Overview"}'>Overview</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Type"}'>Type</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Exchange offer"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>Exchange offer</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Consideration"}'>Consideration</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Acquirer"}'>Acquirer</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"TY Holdings Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>TY Holdings Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Ticker"}'>- Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"363280"}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula='="363280"'>363280</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target company"}'>Target company</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Tae Young Engineering&amp;Constructin Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Tae Young Engineering&amp;Constructin Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Ticker"}'>- Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"009410"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="009410"'>009410</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - SO (ord)"}'>- SO (ord)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":38899098}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[-1]C[0], "shares")'>38,899,098</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Offering price"}'><strong>Offering price</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10245}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩10,245</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target volume"}'>Target volume</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15600000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>15,600,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of SO (ord)"}'><strong>- % of SO (ord)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.40103757675820656}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/R[-3]C[0]"><strong>40.10%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target value"}'><strong>Target value</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":159822000000}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-3]C[0]*R[-2]C[0]"><strong>₩159,822,000,000</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Stake % before tender (ord)"}'>Stake % before tender (ord)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.10628272151709019}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=4134302/R8C[0]">10.63%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Stake % after tender (ord)"}'>Stake % after tender (ord)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5073202982752968}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=19734302/R8C[0]">50.73%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Banker"}'>Banker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KIS"}'>KIS</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Timetable"}'>Timetable</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Announcement"}'>Announcement</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44161}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2020. 11. 26</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Tender offer begins"}'><strong>Tender offer begins</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44193}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2020. 12. 28</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Tender offer ends"}'><strong>Tender offer ends</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":43848}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2020. 1. 18</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Payment"}'>Payment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":43850}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2020. 1. 20</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

TY Holdings announce a tender offer to the shareholders of Tae Young E&amp;C.It is a stock swap, not a cash offer. Yes, it is a well-anticipated event to complete the holding company conversion.The target volume is 15.6M, 40.1% of the target company's SO. So, the holding company's stake will rise from 10.6% to 50.7% (ord).The tender begins on December 28 and runs until January 18. FYI, no shareholder record date here. That is, you can buy and tender your shares even during the tendering period.





Overview

Type
Exchange offer


Consideration
-


Acquirer
TY Holdings Co Ltd


- Ticker
363280


Target company
Tae Young Engineering&amp;Constructin Co Ltd


- Ticker
009410


- SO (ord)
38,899,098


Offering price
₩10,245


Target volume
15,600,000


- % of SO (ord)
40.10%


Target value
₩159,822,000,000


Stake % before tender (ord)
10.63%


Stake % after tender (ord)
50.73%


Banker
KIS

Source: DART







Timetable

Announcement
2020. 11. 26


Tender offer begins
2020. 12. 28


Tender offer ends
2020. 1. 18


Payment
2020. 1. 20

Source: DART



Tae Young E&C Tender Offer: Terms & Trading Situation

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<p>The Korea Exchange announced its KOSDAQ150 and KRX300 indices rebalances today. There were 17 new additions and 17 deletions for KOSDAQ150. </p><p>Most of the stocks that were expected to be included in KOSDAQ 150 were officially included in the rebalance. However there were a few surprises. For example <a href="https://www.smartkarma.com/entities/nanos-co-ltd" target="_blank" data-smartkarma-citation="entities:16796:1" rel="noopener">Nanos Co Ltd (151910 KS),</a>which was one of the stocks that was expected to be included in KOSDAQ150, did not get included in this indext this time. On the other hand, the following stocks including <a href="https://www.smartkarma.com/entities/sang-a-frontec-co-ltd" target="_blank" data-smartkarma-citation="entities:20692:1" rel="noopener">Sang A Frontec (089980 KS)</a>, Novarex (194700 KS(, CIS (222080 KS), MedPacto (215980 KS), <a href="https://www.smartkarma.com/entities/koreacenter-com-co-ltd" target="_blank" data-smartkarma-citation="entities:28329:1" rel="noopener">Koreacenter.com Co Ltd (290510 KS)</a>, and Soulbrain (357780 KS) which were not on the top of the lists of getting selected into the KOSDAQ150 index by the locals, were formally selected be part of the new KOSDAQ150 inclusions.  </p><p>The Korea Exchange also made changes to the KRX300 index. Although the KRX300 index is not currently as important as KOSPI200 and KOSDAQ150 indices, it is increasingly gaining in importance among the local institutional investors. The KRX300 had 33 new additions and 35 deletions. </p>

The Korea Exchange announced its KOSDAQ150 and KRX300 indices rebalances today. There were 17 new additions and 17 deletions for KOSDAQ150. Most of the stocks that were expected to be included in KOSDAQ 150 were officially included in the rebalance. However there were a few surprises. For example Nanos Co Ltd (151910 KS),which was one of the stocks that was expected to be included in KOSDAQ150, did not get included in this indext this time. On the other hand, the following stocks including Sang A Frontec (089980 KS), Novarex (194700 KS(, CIS (222080 KS), MedPacto (215980 KS), Koreacenter.com Co Ltd (290510 KS), and Soulbrain (357780 KS) which were not on the top of the lists of getting selected into the KOSDAQ150 index by the locals, were formally selected be part of the new KOSDAQ150 inclusions.  The Korea Exchange also made changes to the KRX300 index. Although the KRX300 index is not currently as important as KOSPI200 and KOSDAQ150 indices, it is increasingly gaining in importance among the local institutional investors. The KRX300 had 33 new additions and 35 deletions. 

KOSDAQ150 and KRX300 Indices Rebalances (Overlapping Additions & Deletions)

<p>KRX announced the rebalance to the KOSPI200 index today. There was not much surprise among the new 10 additions, which included stocks such as Samyang Foods, Zinus, and Kiwoom Securities. However, there was some surprises among the deletions including Unid, <a href="https://www.smartkarma.com/entities/dong-a-socio-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:4271:1" rel="noopener">Dong A Socio Holdings (000640 KS), </a>and <a href="https://www.smartkarma.com/entities/dong-a-st-co-ltd" target="_blank" data-smartkarma-citation="entities:16873:1" rel="noopener">Dong A St (170900 KS)</a>.</p><p>Among the newly included companies, in terms of their fundamental business outlook and reasonable valuations, we think Samyang Foods, Zinus, and Hanwha Systems fit into these categories. We would be cautious on Big Hit Entertainment, CS Wind, and Shinpoong Pharm as we think there could be some sellers on investors that trade on the "sell on news" strategy of being included in KOSPI 200.  </p>

KRX announced the rebalance to the KOSPI200 index today. There was not much surprise among the new 10 additions, which included stocks such as Samyang Foods, Zinus, and Kiwoom Securities. However, there was some surprises among the deletions including Unid, Dong A Socio Holdings (000640 KS), and Dong A St (170900 KS).Among the newly included companies, in terms of their fundamental business outlook and reasonable valuations, we think Samyang Foods, Zinus, and Hanwha Systems fit into these categories. We would be cautious on Big Hit Entertainment, CS Wind, and Shinpoong Pharm as we think there could be some sellers on investors that trade on the "sell on news" strategy of being included in KOSPI 200.  

KOSPI 200 Index Rebalances: No Surprises Among Additions, A Few Surprises Among Deletions

<p>Tae Young E&amp;C demerger got shareholder approval on July 15. More critically, it finally obtained regulatory approval (albeit conditional).</p><p>So, the demerger proceeds as scheduled at a 0.49:0.51 ratio.</p><p>E&amp;C will become an operating company carrying the same ticker, whereas we will be a newly spun-off company acting as a holding company.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/154/482/original/1.png?1598198017" class="editor-image img-responsive" data-smartkarma-image-id="154482"></figure><p>We have four more trading days before the trading suspension, August 28. September 22 will be for re-listing.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/154/483/original/2.png?1598198381" class="editor-image img-responsive" data-smartkarma-image-id="154483"></figure>

Tae Young E&amp;C demerger got shareholder approval on July 15. More critically, it finally obtained regulatory approval (albeit conditional).So, the demerger proceeds as scheduled at a 0.49:0.51 ratio.E&amp;C will become an operating company carrying the same ticker, whereas we will be a newly spun-off company acting as a holding company.We have four more trading days before the trading suspension, August 28. September 22 will be for re-listing.

Tae Young E&C Demerger: Value Accretion Checkup

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<p>The KRX announced the list of inclusions and exclusions to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" rel="noopener" data-smartkarma-citation="entities:26021:1">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.</p><p>There are 11 inclusions and 11 exclusions in the June 2020 review with an estimated one-way turnover of 0.87%.</p><p>The inclusions and exclusions are tabulated here.</p><table class="table table-striped">
<colgroup><col span="4"></colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 96pt;" colspan="2">INCLUSIONS</td>
<td style="text-align: center; width: 96pt;" colspan="2">EXCLUSIONS</td>
</tr>
<tr>
<td>003670.KS</td>
<td>Posco Chemical Co Ltd</td>
<td>001520.KS</td>
<td>Tongyang Inc</td>
</tr>
<tr>
<td>007700.KS</td>
<td>F&amp;F Co Ltd</td>
<td>002960.KS</td>
<td>Hankook Shell Oil Co Ltd</td>
</tr>
<tr>
<td>009410.KS</td>
<td>Taeyoung Engineering &amp; Construction Co Ltd</td>
<td>003620.KS</td>
<td>Ssangyong Motor Co Ltd</td>
</tr>
<tr>
<td>011200.KS</td>
<td>HMM Co Ltd</td>
<td>003920.KS</td>
<td>Namyang Dairy Products Co Ltd</td>
</tr>
<tr>
<td>016380.KS</td>
<td>KG DongbuSteel Co Ltd</td>
<td>005850.KS</td>
<td>SL Corp</td>
</tr>
<tr>
<td>020560.KS</td>
<td>Asiana Airlines Inc</td>
<td>006840.KS</td>
<td>AK Holdings Inc</td>
</tr>
<tr>
<td>032350.KS</td>
<td>Lotte Tour Development Co Ltd</td>
<td>008060.KS</td>
<td>Daeduck Co Ltd</td>
</tr>
<tr>
<td>180640.KS</td>
<td>Hanjin Kal</td>
<td>025540.KS</td>
<td>Korea Electric Terminal Co Ltd</td>
</tr>
<tr>
<td>192080.KS</td>
<td>DoubleU Games Co Ltd</td>
<td>079430.KS</td>
<td>Hyundai Livart Furniture Co Ltd</td>
</tr>
<tr>
<td>241590.KS</td>
<td>Hwaseung Enterprise Co Ltd</td>
<td>096760.KS</td>
<td>JW Holdings Corp</td>
</tr>
<tr>
<td>284740.KS</td>
<td>Cuckoo Homesys Co Ltd</td>
<td>298040.KS</td>
<td>Hyosung Heavy Industries Corp</td>
</tr>
</tbody>
</table><p>There are 11 days trading days to implementation day and there is significant volume to trade on quite a few of the inclusions and exclusions, so there will be a fair bit of volatility and opportunities to make money.</p>

The KRX announced the list of inclusions and exclusions to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.There are 11 inclusions and 11 exclusions in the June 2020 review with an estimated one-way turnover of 0.87%.The inclusions and exclusions are tabulated here.



INCLUSIONS
EXCLUSIONS


003670.KS
Posco Chemical Co Ltd
001520.KS
Tongyang Inc


007700.KS
F&amp;F Co Ltd
002960.KS
Hankook Shell Oil Co Ltd


009410.KS
Taeyoung Engineering &amp; Construction Co Ltd
003620.KS
Ssangyong Motor Co Ltd


011200.KS
HMM Co Ltd
003920.KS
Namyang Dairy Products Co Ltd


016380.KS
KG DongbuSteel Co Ltd
005850.KS
SL Corp


020560.KS
Asiana Airlines Inc
006840.KS
AK Holdings Inc


032350.KS
Lotte Tour Development Co Ltd
008060.KS
Daeduck Co Ltd


180640.KS
Hanjin Kal
025540.KS
Korea Electric Terminal Co Ltd


192080.KS
DoubleU Games Co Ltd
079430.KS
Hyundai Livart Furniture Co Ltd


241590.KS
Hwaseung Enterprise Co Ltd
096760.KS
JW Holdings Corp


284740.KS
Cuckoo Homesys Co Ltd
298040.KS
Hyosung Heavy Industries Corp


There are 11 days trading days to implementation day and there is significant volume to trade on quite a few of the inclusions and exclusions, so there will be a fair bit of volatility and opportunities to make money.

South Korea

Taeyoung Engineering & Construction provides civil engineering, architectural, and plant construction services.  The Company concentrates on public civil engineering projects including highways, water drainage systems, and bridges. Taeyoung also operates leisure and broadcasting businesses through its affiliate s, such as Taeyoung Leisure, and Seoul Broadcasting System (SBS) Production.

Taeyoung Engineering & Construction (009410 KS)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Taeyoung Engineering & Construction (009410 KS)

Tae Young E&C Tender Offer: Terms & Trading Situation

TY Holdings announces a well-anticipated stock-swap tender offer to Tae Young E&C. It is to complete the holding company conversion.

Sanghyun Park

KOSDAQ150 and KRX300 Indices Rebalances (Overlapping Additions & Deletions)

We highlight the KOSDAQ150 and KRX300 indices rebalances. There are some interesting new names, especially among those that are over lapping in...

Douglas Kim

KOSPI 200 Index Rebalances: No Surprises Among Additions, A Few Surprises Among Deletions

KRX anounced its KOSPI200 index rebalance. There were no surprises among the new additions but a few surprises among the deletions.

Douglas Kim

Tae Young E&C Demerger: Value Accretion Checkup

Tae Young E&C demerger got shareholder approval on July 15. More critically, it finally obtained regulatory approval (albeit conditional).So,...

Sanghyun Park

KOSPI200 Index Review - A Few Surprises

The KRX announced the list of inclusions and exclusions to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) today. The rebalance is...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)