Daily BriefsSouth Korea

Daily Brief South Korea: SK Inc, SBI FinTech Solutions, Dong Il Corp, MNC Solution and more

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

By Sanghyun Park

  • 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

By Douglas Kim

  • 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

By Douglas Kim

  • 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

By Clarence Chu

  • 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.

💡 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