In today’s briefing:
- Solactive Global Uranium & Nuclear Components Index Rebalance: 6 Adds, 5 Deletes
- MBK/Unison Capital Korea Do a Deal for Osstem Implant (048260 KS) Thwarting Activist KCGI
- Samsung Electronics 1P Pushed to a Substantial Diversion (Below -2σ) Today
- Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023
Solactive Global Uranium & Nuclear Components Index Rebalance: 6 Adds, 5 Deletes
- Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index. There are 6 adds and 5 deletes with implementation at the close on 31 January.
- Estimated one-way turnover is in excess of 12% and will result in a one-way trade of US$207m. There are 11 stocks with estimated passive flows greater than 5x ADV.
- Some of the inclusions have had BIG rallies over the last couple of months and there could be profit taking on those names in the next few days.
MBK/Unison Capital Korea Do a Deal for Osstem Implant (048260 KS) Thwarting Activist KCGI
- Just over a year ago, leading Korean dental implant and dentistry supply company Osstem Implant (048260 KS) announced the largest-ever embezzlement case in Korea. The stock was suspended.
- There were fears about forced selling by the founder, and PE funds circled. Activist KCGI probably bought in Q3 but built a 5+% stake by end-December 2022.
- Korean PE Firms MBK and Unison Capital have now launched an MBO-style Tender Offer to buy 2.4-11.2mm shares in the company at a sharp premium to the pre-activism undisturbed price.
Samsung Electronics 1P Pushed to a Substantial Diversion (Below -2σ) Today
- SamE PREF’s relative underperformance compared to ORD has been getting a bit worse lately. And finally, today, it went down below -2.0σ on a 20-day moving average.
- This much diversion is the first in recent months, and the pref discount is close to last year’s peak. The dividend yield difference is also the widest in recent years.
- The current diversion appears to be a byproduct of the SamE overbuying amid the recent market rally, and we should expect a quick reversion.
Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023
- In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023.
- Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.
- We highlight 33 pair trades that involve Korean holdcos and opcos.
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