In today’s briefing:
- Market Information About Samsung Electronics’ Shareholder Return
- SK Rent A Car: SK Networks’ Tender Offer
- SK Networks Launches a Tender Offer for SK Rent-A-Car
- Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It
- Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]
Market Information About Samsung Electronics’ Shareholder Return
- The local market is increasingly convinced that Samsung Electronics’ quarterly dividends for the latter half of this year will experience a reduction.
- Samsung Electronics plans to apply the updated regulations from the 2024 1st quarter dividends, following the conclusion of the capital market law revision at the end of this year.
- It might be prudent to refrain from trading that bets on a reduction in the 1P discount in the first half of this year.
SK Rent A Car: SK Networks’ Tender Offer
- Korean car rental play SK Rent A Car (068400 KS) has announced a Tender Offer from SK Networks (001740 KS), its largest shareholder with ~76%.
- SK Rent shareholders have the option of receiving cash or SK Networks scrip. Appraisal rights are also afforded.
- The shareholder vote is a lock. The current trade is the cash offer, which is trading tight to terms.
SK Networks Launches a Tender Offer for SK Rent-A-Car
- We have a positive view of SK Networks’ tender offer of SK Rent-A-Car.
- SK Networks is trying to buy the entire SK Rent-A-Car which is enjoying solid growth in sales and profits. SK Networks plans to eventually delist SK Rent-A-Car.
- The shareholders of SK Rent-A-Car have a choice of tendering their shares receiving cash (at the tender offer price of 13,500 won) or receiving shares in SK Networks.
Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It
- Multiple local news outlets reported Hanwha Ocean is undergoing a 2.5 trillion won equity increase. The official disclosure regarding this matter is expected to be released within this month.
- We have repeatedly observed a pattern of testing the waters through leaks to the local media. The case of Hanwha Ocean can also be seen in this light.
- It’s challenging to envision this magnitude being absorbed seamlessly by the market. There is a considerable likelihood that both issuers and bankers will aggressively attract inflows of arbitrage-seeking hot money.
Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]
- After the market close on 21 August, it was reported that Harim Group, Dongwon Group, LX Group, and Hapag-Lloyd have been short-listed as preliminary bidders for HMM.
- KDB and KOBC are selling 38.9% stake in HMM on a fully diluted basis. The local media have mentioned that the potential sales price could be about 5-6 trillion won.
- We continue to have a Negative view of HMM. e expect additional 20-30%+ downside risk over the next 6-12 months.
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