Brief Event-Driven: POSCO Chemtech: Merger, Renaming, KOSPI Move & Joining KOSPI 200 and more

In this briefing:

1. POSCO Chemtech: Merger, Renaming, KOSPI Move & Joining KOSPI 200

1. POSCO Chemtech: Merger, Renaming, KOSPI Move & Joining KOSPI 200

• POSCO Chemtech (003670 KS) is to merge with one of the affiliated companies, POSCO ESM through stock swap at a ratio of 1 to 0.2172865. It will change its corporate name from POSCO Chemtech to POSCO Chemical. It is also planning KOSPI move.
• KOSPI 200 inclusion is a done deal. Just, timing is in question. New passive money flowing into POSCO Chemtech is estimated at ₩68bil. This represents 1.69% of MC and 4.82% of float MC. This is less than twice total daily trade value.
• If KOSPI 200 inclusion happens for this annual rebalancing cycle, it will be June. If not, we will have to wait another year. This explains current ‘dull’ price movement. I’d keep an eye on this event. ₩68bil passive money would still become a price shaker.