In today’s briefing:
- Backstory on the Hanmi Science Showdown & KKR’s Likely Tender Offer
- Hanmi Science: If Talks With Mum and Sister Break Down, Then KKR May Provide a Partial Tender Offer
- Hanwha Aerospace: Spin Off of Semiconductor Equipment and Video Surveillance Units
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Backstory on the Hanmi Science Showdown & KKR’s Likely Tender Offer
- The victorious brothers plan to join forces with KKR to secure over 51% ownership of Hanmi Science. They aim to persuade the mother and daughter to part with their shares.
- Should this negotiation fail, KKR is prepared to initiate a tender offer in the open market, intending to acquire an additional 10-15% of Hanmi Science’s shares.
- KKR can target a maximum of 16%. With 10-15% aimed for, this tender offer will cause significant price impact.
Hanmi Science: If Talks With Mum and Sister Break Down, Then KKR May Provide a Partial Tender Offer
- The 2024 AGM of Hanmi Science is over and the two Lim brothers have control of the company. Nonetheless, the fight for the control of Hanmi Science is not over.
- There is an increasingly probable scenario where the KKR private equity firm gets involved, joining hands with the Lim brothers.
- If mum and sister do not sell their shares (which seems to be the higher likely scenario), then KKR may issue a tender offer to the remaining minority shareholders.
Hanwha Aerospace: Spin Off of Semiconductor Equipment and Video Surveillance Units
- On 5 April, Hanwha Aerospace (012450 KS) formally announced that it will spin off its semiconductor equipment and video surveillance units which contributed to about 16% of its revenue.
- We are Negative on Hanwha Aerospace mainly due to valuations. Its share price has risen so much in the past year that its valuations are no longer attractive.
- Hanwha Aerospace is trading at premium valuation to Lockheed Martin on an EV/EBITDA basis. Despite its recent strong growth, Hanwha Aerospace is no Lockheed Martin.