In today’s briefing:
- Why Samsung Fire Is Shaping Up to Be the Hottest Dividend Play Ahead of the Value-Up Disclosure
- Korea Investment Securities to Step up as the White Knight for Choi Family at Korea Zinc
- Main Takeaways from Today’s MBK Press Briefing About the Korea Zinc Tender
- Digging into the News Flow on KIS Jumping in as the White Knight for Choi in the Korea Zinc Deal
Why Samsung Fire Is Shaping Up to Be the Hottest Dividend Play Ahead of the Value-Up Disclosure
- With the 15% ownership cap complicating buybacks, Samsung Fire’s more likely to roll out a dividend-focused value-up play instead.
- They’ve flagged a mix of shareholder returns and investments, but the big question is how much will be funneled into returns this year.
- If Samsung Fire hits a 50% shareholder return this year, DPS could jump to ₩23,000–₩25,000 with a 6.5% yield, potentially boosting the stock price by 20–30%.
Korea Investment Securities to Step up as the White Knight for Choi Family at Korea Zinc
- Hankyung Business Daily reported that Korea Investment Securities (KIS) is in a serious discussion with the Choi family of Korea Zinc to step up as a white knight.
- KIS/Choi family are considering a plan to launch a counterbid against Jang family and MBK by investing around 2 trillion won+ along with other private equity funds.
- It is probable that tender offer price of Korea Zinc could be raised by 15-25% due to a likely counterbid and current price trading 7% higher than tender offer price.
Main Takeaways from Today’s MBK Press Briefing About the Korea Zinc Tender
- MBK’s funding plan for Korea Zinc involves using ₩1T from their 6th Buyout Fund and the rest via debt. This setup leaves room to potentially increase the tender price.
- The key question is if there’s enough upside at this price. MBK’s silence on abandoning Youngpoong suggests they’re unlikely to fully bail on Korea Zinc even if the tender fails.
- With MBK’s strategy leaked, institutions may hesitate, fearing less price drop risk, suggesting a proxy battle could heat up. We should consider spread trading and post-tender price moves.
Digging into the News Flow on KIS Jumping in as the White Knight for Choi in the Korea Zinc Deal
- The key issue is if KIS can form a consortium. PEFs are saying the timeline is too tight and are concerned about the unclear exit strategy.
- To make this work, PEFs need Choi’s 15.65% Korea Zinc stake as collateral, but much of it is already tied up, limiting cash-raising potential.
- They’ll likely continue to leak news to boost the price and buy time. But this will also push MBK to sweeten their offer sooner.
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