Daily BriefsEvent-Driven

Daily Brief Event-Driven: Key Implications of SK Inc’s Disposal of SK Siltron and more

In today’s briefing:

  • Key Implications of SK Inc’s Disposal of SK Siltron
  • Abacus Storage King (ASK AU): Ki Corp/Public Storage’s NBIO at A$1.47
  • Potential Sale of a Controlling Stake in SK Siltron to Hahn & Co
  • Industrivärden’s Q1 2025: NAV Evolution, Discount, Target NAV, Replication


Key Implications of SK Inc’s Disposal of SK Siltron

By Sanghyun Park

  • SK Inc is selling SK Siltron to cut its 68% debt-to-equity ratio. The sale could reduce borrowings below ₩5T and lower debt ratio to 30-40%.
  • Chey Tae-won’s divorce lawsuit risks his majority stake in SK Inc. Selling Siltron helps raise ₩1T for alimony without touching his SK Inc shares, potentially reducing the holding company discount.
  • SK Inc-SK Square merger is unlikely soon, despite asset sales and preparation on both sides, as SK Square recently reaffirmed no current merger plans. Setting a position now seems premature.

Abacus Storage King (ASK AU): Ki Corp/Public Storage’s NBIO at A$1.47

By Arun George

  • On 7 April, Abacus Storage King (ASK AU) disclosed a non-binding proposal from Ki Corporation and Public Storage (PSA US) at A$1.47, a 26.7% premium to the undisturbed price.
  • While below NTA (implying a P/NTA of 0.92x), the offer is reasonable compared to peer multiples and historical trading ranges. It represents an all-time high. 
  • A binding offer is conditional on due diligence (expected to take six weeks) and Board recommendation. The Board should work to secure a binding offer closer to NTA.   

Potential Sale of a Controlling Stake in SK Siltron to Hahn & Co

By Douglas Kim

  • In this insight, we discuss about SK Inc (034730 KS) which is considering on selling the controlling stake of SK Siltron.
  • If SK is successful in selling 70.6% stake in SK Siltron for about 5 trillion won, it could result in more than 3 trillion won cash inflow for SK Inc. 
  • Our base case valuation of SK Inc is NAV of 13.9 trillion won (NAV per share of 192,217 won), representing a 61% upside from current levels.

Industrivärden’s Q1 2025: NAV Evolution, Discount, Target NAV, Replication

By Jesus Rodriguez Aguilar

  • Industrivärden offers cost-efficient, long-term exposure to Swedish industrial blue chips, with a high-quality balance sheet and 21% upside potential to our NAV-based target price of SEK 380.2.
  • While the portfolio remains concentrated in five core holdings, recent underperformance has opened a value gap; Volvo and Sandvik remain key drivers of upside in a cyclical rebound.
  • The current 5.5% NAV discount is below historical norms, but insider buying and improved fundamentals suggest scope for re-rating as market sentiment stabilizes around Industrivärden’s core assets.

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