Daily Brief South Korea: HMM Co., Ltd., Osstem Implant, Samsung C&T and more

In today’s briefing:

HMM Is Likely the First to Be Subject to the Mandatory Offer that Comes into Force
Osstem Implant: Details of Tender Offer & Chairman Choi’s Children Exchange CB Call Options for BWs
Using Smartkarma/OWL ESG Analytics to Narrow Down List of Corporate Activism Targets in Korea

HMM Is Likely the First to Be Subject to the Mandatory Offer that Comes into Force

KDB recently initiated the process of selecting an advisory firm to sell its stake in HMM, which will likely be the first to implement the mandatory offer rule.
Potential bidders include Hyundai Glovis, LX Holdings, and Samsung SDS. As for POSCO Holdings, it recently said that it is not considering acquiring HMM.
Given that HMM is the only national shipping company, there is a good chance that multiple bidders will appear, which will lead to a premium to the market price.

We provide details of the Osstem Implant tender offer as well as Chairman Choi’s children exchange of CB call options for BWs.
We believe that the majority of the minority shareholders in Osstem Implant are not likely to sell their shares at 190,000 won per share but hold on to it.
Over a longer time frame, Osstem’s share price could reach higher levels driven by its improving sales and profit growth, deep valuation discount to global peers, and further M&A fight.

We discuss how to use the OWL ESG Analytics (available on Smartkarma) to narrow down the list of companies that could be the next targets of corporate activism in Korea.
We go through in detail, step-by-step process of how to narrow down the list of companies, using the OWL ESG Analytics.
Corporate activism has been one of the most important, market moving factors moving the Korean stock market this year.

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