In today’s briefing:
- Celltrion Merger Announcement in July: Trading Angles Utilizing Appraisal Rights Exercise Dynamics
- SK Innovation: Rights Offering of 1.2 Trillion Won at a 21% Discount to Current Price
Celltrion Merger Announcement in July: Trading Angles Utilizing Appraisal Rights Exercise Dynamics
- According to Invest Chosun, Celltrion plans to submit a merger registration statement to the KRX in July, with Mirae Asset Securities acting as the lead underwriter.
- Given that the approximate timing of the merger registration statement submission has already been exposed to the market, we can track the difference between the spot and exercise prices.
- Celltrion Inc will likely attempt to minimize the appraisal rights price. We can consider capitalizing on this possibility by shorting Celltrion Inc while going long on the other two companies.
SK Innovation: Rights Offering of 1.2 Trillion Won at a 21% Discount to Current Price
- After the market close on 23 June, SK Innovation (096770 KS) announced that the company will conduct a rights offering worth 1.2 trillion won.
- We have a positive view on SK Innovation’s rights offering of 1.2 trillion won. The expected rights offering price is 143,800 won which is 21% discount to current price.
- Although we have a positive view of SK Innovation over the next 12 months, its share price could face some weakness in the near term due to this capital increase.
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