In today’s briefing:
- Shinhan Financial Group Placement – Another Selldown, Momentum Is Strong but Deal Is Large
- Block Deal Sale of 3.6% Stake in Shinhan Financial by BNP Paribas
- HanaTour Management Sale: Minority Shareholder Tender Offer & Price Premium Assessment
- Hanmi Science: NPS Sides With Mother (Chairwoman) And Daughter
- Hana Tour Service: Major Shareholders Including IMM PE Likely to Sell Their Shares
- W-Scope IPO Lock-Up – Part of the Parent’s Stake Will Be Freed, but It’s Been Adding Instead
Shinhan Financial Group Placement – Another Selldown, Momentum Is Strong but Deal Is Large
- BNP Paribas (BNP FP) is looking to raise around US$680m via selling 3.5% of its stake in Shinhan Financial (055550 KS).
- This will be the fourth selldown for the stock since the start of the year. It will also be the largest one of the lot, so far.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Block Deal Sale of 3.6% Stake in Shinhan Financial by BNP Paribas
- After the market close on 26 March, it was announced that BNP Paribas plans to sell its 3.6% stake in Shinhan Financial in a block deal sale 18.7 million shares).
- The block deal sale is estimated to be about 900 billion won, which would represent one of the largest block deal sales in Korea in the past several years.
- We have a Negative view on the Shinhan Financial Group block deal and we would not subscribe to it due to three major reasons.
HanaTour Management Sale: Minority Shareholder Tender Offer & Price Premium Assessment
- HanaTour seeks new ownership after 4 years under IMM PE. Despite COVID-19 setbacks, successful restructuring attracts attention from online travel and investment giants.
- Market rumors hint at Yanolja and Hotels.com interest, possibly intensifying acquisition competition, leading to a higher price premium. IMM’s 16.68% stake may value at ₩250B, a 35% premium.
- Last year’s mandatory tender offer for 50%+1 share awaits legislation. Unlikely to affect HanaTour sale. Nonetheless, potential acquirers may buy additional shares, suggesting further premium formation in share price.
Hanmi Science: NPS Sides With Mother (Chairwoman) And Daughter
- After the market close on 26 March, it was reported that NPS has decided it will side with Chairwoman Young-Sook Song (mother) and her daughter Ju-Hyun Lim.
- As a result, Chairwoman Young-Sook Song (mother) and Ju-Hyun Lim have secured 40.86% of the shares, which is slightly higher than the ownership of her two sons (38.4%).
- In the near term, this battle for the control of the company could have a positive impact on Hanmi Science’s share price.
Hana Tour Service: Major Shareholders Including IMM PE Likely to Sell Their Shares
- Hana Tour Service (039130 KS), the number one travel platform in Korea, announced that IMM PE (controlling shareholder of the company) is planning to sell its controlling stake.
- The total stake in the company that is up for sale could rise to 27.78%, including stakes held by Hana Tour founder Park Sang-hwan and co-founder Kwon Hee-seok.
- Potential buyers of the controlling stake in Hana Tour include Yanolja, Hotels.com, Booking.com, and Trip.com.
W-Scope IPO Lock-Up – Part of the Parent’s Stake Will Be Freed, but It’s Been Adding Instead
- WCP raised around US$314m via selling a mix of primary and secondary shares in its Korean IPO. The lockup on some of its parent’s stake will expire soon.
- WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
