In today’s briefing:
- K-Pop Battle, Round 2: Kakao’s Tender Offer For S.M. Entertainment
- Doosan Bobcat: Block Deal Sale of 4.8% of Outstanding Shares
- Doosan Bobcat Placement – Past Deal Didn’t Do Well, This Time Could Be Different
K-Pop Battle, Round 2: Kakao’s Tender Offer For S.M. Entertainment
- Fresh after the courts rejected new share issuance, Kakao (035720 KS) has launched an Offer for S.M.Entertainment (041510 KS), less than a week after HYBE (352820 KS)‘s deal closed.
- Kakao, holding 4.9%, is seeking to lift its stake to ~40% via a tender offer at ₩150,000/share, a 25% premium to HYBE’s offer price.
- The key question is – will HYBE counter? I would not be so sure.
Doosan Bobcat: Block Deal Sale of 4.8% of Outstanding Shares
- On 7 March, Doosan Bobcat announced a block deal sale of 4.87 million shares, representing 4.8% of outstanding shares. The block deal discount range is from 6.11% to 8.03%.
- We have a Negative view on this block deal sale and we continue to have a Negative view on Doosan Bobcat’s shares.
- There are visible signs of the construction sector slowdown in North America and Europe driven by higher interest rates, housing price declines, and decline in the residential/commercial construction markets.
Doosan Bobcat Placement – Past Deal Didn’t Do Well, This Time Could Be Different
- A group of shareholders aim to raise around US$138m by selling all of their remaining stake in Doosan Bobcat.
- The same shareholders had earlier sold in Nov 22, see Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag. That deal didn’t do well.
- In this note, we will run the deal through our ECM framework and comment on other deal dynamics.
💡 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
