In today’s briefing:
- KRX New Deal Index Rebalance Preview: Some Big Impact Names
- Coway Is a Prime Candidate for Corporate Activism in Korea
- A Tender Offer of Osstem Implant by MBK & Unison Capital?
- Detailing Maekyung Report on MBK’s Tender Offer to Osstem Implant Shareholders at a 20% Premium
KRX New Deal Index Rebalance Preview: Some Big Impact Names
- The review period for the March rebalance ends on 31 January, the changes will be announced towards end February and implemented at the close of trading on 9 March.
- We forecast one add/delete for the Game Index, and a couple of adds/deletes for the BBIG Index. There will be a lot of capping changes.
- The largest inflows are expected on Posco Chemical (003670 KS) and Douzone Bizon (012510 KS); the largest outflows are expected on SK Innovation (096770 KS) and KMW (032500 KS).
Coway Is a Prime Candidate for Corporate Activism in Korea
- In this insight, we discuss the major reasons why Coway Co Ltd (021240 KS) is a prime candidate for corporate activism in Korea.
- Netmarble has done a poor job with Coway post its acquisition in 2019.
- An action plan for Coway is to return at least half of its net profit through dividends and share buybacks/cancellations.
A Tender Offer of Osstem Implant by MBK & Unison Capital?
- On 24 January, it was reported in Maeil Business Daily that MBK and Unison Capital are ready to take over the management rights of Osstem Implant through a tender offer.
- For now, Osstem Implant, MBK Partners, and Unison Capital have not confirmed on the validity of this news.
- We would attach a 70-90% probability that indeed MBK Partners and Unison Capital Korea are ready to launch a tender offer on Osstem Implant.
Detailing Maekyung Report on MBK’s Tender Offer to Osstem Implant Shareholders at a 20% Premium
- Maekyung exclusively reports MBK will do a tender offer to Osstem Implant shareholders at a 20% premium to buy a 15% stake.
- As Maekyung is a first-tier news outlet in Korea, we have to see enough credibility in this report. We should expect to see it in an official regulatory filing soon.
- We should design a play that actively utilizes the tender offer event very elaborately. Here, we need to consider immediate offerings and potential delisting from a longer-term perspective.
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