In today’s briefing:
- Korea Pushes to Expand Director’s Duty of Loyalty: Focus on Hostile Takeover-Risk Conglomerates
- SBI Fintech Solutions: Tender Offer and Delisting
- Di Dong Il Corp: Share Cancellation of 15% of Outstanding Shares
- MNC Solutions Pre-IPO – Momentum Has Been Very Strong, Although Some Corp Gov Issues to Watch For
Korea Pushes to Expand Director’s Duty of Loyalty: Focus on Hostile Takeover-Risk Conglomerates
- A Democratic Party insider noted some proposals need legal tweaks, so the December 10 deadline may slip, but they’re set on passing the expanded director loyalty duty.
- FKI analyzed top conglomerates’ shareholder structures and found four of the top 10 facing substantial risks.
- We need more clarity before jumping in, but with MBK driving Korea’s hostile M&A scene and the Commercial Act amendments, local chaebols facing control battles are a key KOSPI theme.
SBI Fintech Solutions: Tender Offer and Delisting
- After the market close on 14 November, SBI Fintech Solutions announced that the Japanese financial group SBI is pushing for a tender offer and delisting of SBI Fintech Solutions.
- The tender offer price is 5,000 won per share, which is 36% higher than the closing price on 14 November. The tender offer size amount is about 26 billion won.
- Given the relatively solid upside, we believe SBI Holdings is likely to successfully complete this tender offer and take the company private.
Di Dong Il Corp: Share Cancellation of 15% of Outstanding Shares
- On 14 November, Di Dong Il Corp (001530 KS) announced that it plans to cancel 3.78 million treasury shares (representing 15% of outstanding shares) on 29 November.
- The company currently has 5.84 million outstanding shares. Thus, the share cancellation of 3.78 million shares represent 65% of its treasury shares.
- The company is facing an investigation due to suspicions that it conducted a loan transaction with its largest shareholder, the Jung-Hun Foundation, without board approval.
MNC Solutions Pre-IPO – Momentum Has Been Very Strong, Although Some Corp Gov Issues to Watch For
- MNC Solution (MNC KS) MNC Solutions is looking to raise US$200m in its upcoming Korea IPO.
- MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
- In this note, we look at the firm’s past performance.
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