In today’s briefing:
- Reasons Why KT’s Foreign Room Is Likely to Fall Below the 3.75% Cutoff Level
- SK Innovation’s Merger with SK E&S: Bad Timing for SK Innovation and Higher Risks from RCPS
Reasons Why KT’s Foreign Room Is Likely to Fall Below the 3.75% Cutoff Level
- KT’s foreign room has been exhausted due to value-up trading inflows, NPS selling shares, and KT canceling treasury stocks.
- Hyundai Motor may sell 0.5% of its KT stake, likely to overseas investors. KT’s 700,000 share cancellation will lower foreign ownership to the low-4% range, possibly below 3.75% by November.
- Focus on the stock price surge from ETF recall requests around the effective date, and note that passive outflow corrections typically occur afterward.
SK Innovation’s Merger with SK E&S: Bad Timing for SK Innovation and Higher Risks from RCPS
- On 17 July, SK Innovation (096770 KS) officially announced a merger with SK E&S. The merger ratio between SK Innovation and SK E&S has been set at 1 to 1.1917417.
- We believe this is the wrong timing for this merger from SK Innovation’s point of view. SK Innovation is trading at near three year lows.
- This merger is likely to generate backlash from KKR which holds SK E&S redeemable convertible preferred stock (RCPS) worth 3.1 trillion won.
💡 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
