In today’s briefing:
- KRX’s Plan to Integrate KOSPI & KOSDAQ into a Tiered System: Trading Considerations
- Kakao’s Kim Beom-Su Arrested: Analyzing Its Impact on Related Companies
- Robotics+Bobcat Merger: Merger Ratio Revision Possibility & Arb Spread Recalculations
- Block Deal Sale of Kumho Tire: More Shares Likely to Be Sold by Creditors
KRX’s Plan to Integrate KOSPI & KOSDAQ into a Tiered System: Trading Considerations
- The major framework of this realignment is likely decided, integrating KOSPI and KOSDAQ into a tiered system based on liquidity, market cap, and financial status, with periodic replacements.
- The KOSPI 200’s continued existence is uncertain under the new realignment plan, which may shift its role to the value-up index, resembling Japan’s market restructuring model.
- The first-tier market’s entry requirements will likely reflect value-up index criteria, suggesting greater speculative money movement toward the value-up index starting in September.
Kakao’s Kim Beom-Su Arrested: Analyzing Its Impact on Related Companies
- Kakao’s Kim Beom-su has been arrested over alleged stock price manipulation in the SM Entertainment buyout, marking a new peak in the company’s legal troubles.
- Kakao Corp’s stock might drop due to the absence of a key figure. KakaoBank could also struggle from uncertainty about its largest shareholder and weakened business ties.
- Kakao’s potential sale of SM Entertainment shares could initially hurt the stock price, but potential bidding interest might boost it.
Robotics+Bobcat Merger: Merger Ratio Revision Possibility & Arb Spread Recalculations
- During Kim Byung-hwan’s hearing, he acknowledged market concerns about the Doosan merger, increasing skepticism about Doosan’s ability to maintain the original merger ratio.
- Calculating Bobcat’s net asset value using the net asset value method yields approximately ₩6.1T, derived from ₩5.95T in year-end equity plus ₩0.13T in adjustments.
- Reassess arb trading opportunities; with no short hedge for Robotics, consider an outright long position in Bobcat if its swap price is revised and the spread widens.
Block Deal Sale of Kumho Tire: More Shares Likely to Be Sold by Creditors
- Woori Bank completed a block deal sale of 11 million shares of Kumho Tire Co (073240 KS) (3.83% of outstanding shares) on 18 July.
- After the recent sales by Woori Bank and the Export-Import Bank of Korea, the creditors’ stakes in Kumho Tire has been reduced to 19.17%.
- Despite Kumho Tire’s recent improvement in financial performance, we are more concerned about the additional stake sale by the financial institutions that still own 19.2% stake in the company.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
