In today’s briefing:
- Exploring Why Samsung Electronics’ Pref Discount Narrowing Took a Sharp Turn Yesterday
- Hanwha Galleria Tender Results Are in with No Proration Issue Despite a Fat Spread. What’s Next?
- The Born Korea IPO Valuation Vs Recent M&A Valuation of Compose Coffee by Jollibee Foods
- Kim Dong-Sun Likely to Purchase More Shares of Hanwha Galleria Post Tender Offer
Exploring Why Samsung Electronics’ Pref Discount Narrowing Took a Sharp Turn Yesterday
- Samsung’s preferred shares lagged significantly behind the common shares yesterday, showing the largest daily sigma move we’ve seen in a while.
- Samsung’s delayed value-up announcement, despite regulatory pressure, has fueled speculation about a potential Biologics stake purchase from C&T.
- It’s time to pause the trade on Samsung’s preferred discount narrowing that I highlighted in early August. The main inflection point will be when Samsung makes its value-up announcement.
Hanwha Galleria Tender Results Are in with No Proration Issue Despite a Fat Spread. What’s Next?
- Hanwha Galleria’s tender offer, led by Kim Dong-sun, closed today with a subscription rate just over 80%, according to the local brokerage after market close.
- Retail investors in small caps like Hanwha Galleria often skip tender offers, hoping for price gains. Kim Dong-sun may try to buy the remaining 10-15% soon, possibly via open-market buys.
- Watch for signs that Kim Dong-sun might go for a second tender to take Galleria private. He might be aiming to avoid taxes and boost his stake’s value.
The Born Korea IPO Valuation Vs Recent M&A Valuation of Compose Coffee by Jollibee Foods
- In this insight, we compare the IPO valuation of The Born Korea (475560 KS) versus the recent M&A valuation of Compose Coffee by Jollibee Foods (JFC PM).
- Using the recent M&A multiples of Compose Coffee by Jollibee Foods suggests an attractive upside to The Born Korea (relative to the IPO price range).
- No other listed company in Korea has a restaurant business model that is consistently profitable, with strong balance sheet, and solid sales growth as The Born Korea.
Kim Dong-Sun Likely to Purchase More Shares of Hanwha Galleria Post Tender Offer
- The tender offer period for Hanwha Galleria ended on 11 September. Its share price closed down 7.4% but still up 8.2% from its price prior to the tender offer announcement.
- The local media accounts mentioned today that about 80-90% of the shares targeted in this tender offer have been filled.
- If 90% of the tender offer is successful, Kim Dong-Sun’s stake in the company will rise from 2.3% to 18.1%.
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