In today’s briefing:
- LG Chem: Still Cheap After LG Energy’s Big Debut
- Link Net (LINK IJ): Axiata’s MTO
- End of Mandatory Lock-Up Periods for 44 Stocks in Korea in February 2022
- Grifols/Biotest: Put Period
- Will Samsung Get EV Envy from LG Energy Solution Listing?
LG Chem: Still Cheap After LG Energy’s Big Debut
- Korean EV battery unit play LG Energy Solution (373220 KS) briefly doubled on its debut yesterday before closing 65.8% higher.
- Following that gain, LG Energy is now the second-largest company in KOSPI after Samsung Electronics (005930 KS).
- LG Chem Ltd (051910 KS) has given back all its gains from earlier this month, and currently trades at ~60% discount to NAV.
Link Net (LINK IJ): Axiata’s MTO
- Axiata Group (AXIATA MK) has entered into conditional SPAs with Asia Link Dewa and PT First Media to acquire 1.82 billion shares, or 66.03% in Link Net (LINK IJ).
- The purchase consideration is IDR4,800/share. Upon completion of the acquisition, Axiata will be obligated to make a mandatory tender offer (MTO).
- Axiata expects to complete the proposal, which is subject to regulatory and shareholder approvals, by the third quarter of 2022.
End of Mandatory Lock-Up Periods for 44 Stocks in Korea in February 2022
- In this insight, we discuss the end of the mandatory lock-up periods for 44 stocks in Korea in February 2022.
- Among these 44 stocks, 8 stocks are in KOSPI and 36 stocks are in KOSDAQ.
- These 44 stocks could be subject to further selling pressures in February and could on average underperform relative to the market.
Grifols/Biotest: Put Period
- The offer has been accepted by 96.2% of ordinary shares, 43.24% of the preferred shares and 69.7% of the total share capital. Acceptance for ordinary shares extended to 21 April.
- Grifols is addressing its leverage, although may not distribute cash dividends until 2024. The discount of B shares has tightened to 33.1%. Long GRFS US/short GRF SM.
- Short BIO3 GR, the shares should return to pre-bid levels (around €35/share), although borrow may be tight. Long BIO GR, and put the shares to Grifols (until 21 April).
Will Samsung Get EV Envy from LG Energy Solution Listing?
- Samsung Electronics (005930 KS) was rather stingy with their capital returns after a stellar 2021
- The longer term capital commitment plan of its 2 largest holdings gives a higher indication that M&A should be coming
- LG Energy Solution (373220 KS) and Samsung Electronics (005930 KS) account for nearly 30% of KOSPI weight. Talk about big fish small puddle
Before it’s here, it’s on Smartkarma
