In today’s briefing:
- NPS Cash Inflow Projections for KRX Value-Up Index & Surging Interest in KOSDAQ Stocks
- Shinsegae E&C (034300 KS)’s Delisting Offer
- End of Mandatory Lock-Up Periods for 39 Companies in Korea in October 2024
- (Mostly) Asia M&A, Sep 2024: GTJA/Haitong Sec, Korea Zinc/YPP, Hotel Property, Virgin Money, Raysum
NPS Cash Inflow Projections for KRX Value-Up Index & Surging Interest in KOSDAQ Stocks
- NPS will likely use the KRX Value-Up Index as its benchmark, with Long-Term Growth and Value categories likely to adopt it.
- When NPS shifts to the Value-Up Index, KOSDAQ stocks will likely drive significant flow impacts due to their lower overlap.
- These non-overlapping KOSDAQ stocks, attracting over 1 trillion won, could see significant price impacts as funds gradually flow in.
Shinsegae E&C (034300 KS)’s Delisting Offer
- Construction services play Shinsegae E&C (034300 KS) has announced a Tender Offer from E Mart (139480 KS) for 27.33% of shares out, at ₩18,300/share, a 14% premium to undisturbed.
- E Mart holds 70.46% – and the company holds 2.21% in treasuries – therefore, E Mart requires ~22% of the remaining ~27% held by minorities to tender and force delisting.
- Super clean deal. E Mart will acquire all shares tendered. The Offer kicks off today, and closes on the 29th October. There is no minimum tendering % condition.
End of Mandatory Lock-Up Periods for 39 Companies in Korea in October 2024
- We discuss the end of the mandatory lock-up periods for 39 stocks in Korea in October 2024, among which four are in KOSPI and 35 are in KOSDAQ.
- These 39 stocks on average could be subject to further selling pressures in October and could underperform relative to the market.
- The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in October are Korea Zinc, Doosan Robotics, and Kolon TissueGene.
(Mostly) Asia M&A, Sep 2024: GTJA/Haitong Sec, Korea Zinc/YPP, Hotel Property, Virgin Money, Raysum
- For the month of September 2024, 15 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$23bn.
- The average premium for the new transactions announced (or first discussed) in September was ~43%. The average premium YTD is ~44%
- This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.
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