In today’s briefing:
- Lock & Lock: Second Tender Offer by Affinity Equity Partners
- SK Group’s Restructuring Plans for SK IET and an Earnings Shock for SK IET in 1Q 2024
- Ecopro Materials Lockup Expiry – US$1.5bn Lock-Up Expiry, Can Expect Selling Pressure
Lock & Lock: Second Tender Offer by Affinity Equity Partners
- On 15 May, it was reported in the local media that Affinity Equity Partners (AEP) is expected to launch a second tender offer for Lock & Lock (115390 KS).
- The tender offer price in this second tender offer is 8,750 won (same as the first tender offer). The second tender offer will last from 16 May to 5 June.
- In the first tender offer, only about half of the target was reached. There was a strong backlash from investors due to low tender offer price.
SK Group’s Restructuring Plans for SK IET and an Earnings Shock for SK IET in 1Q 2024
- According to Maekyung Business Daily, SK Innovation maybe planning to sell its controlling interest in SK IE Technology (SK IET) which produces separators for rechargeable batteries.
- SK On is experiencing financial difficulties due to the sluggish demand for EVs. SK Innovation’s 61.2% stake in SK IET is worth 2.5 trillion won.
- SK IE Technology had an earnings shock in 1Q 2024. It had sales of 46.2 billion won (67.8% lower than consensus) and operating loss of 67.4 billion won 1Q 2024.
Ecopro Materials Lockup Expiry – US$1.5bn Lock-Up Expiry, Can Expect Selling Pressure
- EcoPro Materials (450080 KS) raised around US$320m in its Korean IPO, after pricing the deal at KRW36,200/share. Its six-month IPO lockup will expire on 17th May 2024.
- Ecopro Materials (EPM) manufactures and sells high-nickel precursors, one of the key materials for high-nickel cathode materials for secondary (rechargeable) batteries.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
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