Brief Industrials: HDC Holdings Goes Activist on Samyang Foods and more

In this briefing:

1. HDC Holdings Goes Activist on Samyang Foods
2. Last Week in GER Research: API/Sigma, M1, Eclipx/Mcmillan and Hansoh IPO

1. HDC Holdings Goes Activist on Samyang Foods

• We have a really interesting and unusual situation in Korea right now with HDC Holdings (012630 KS) going activist on Samyang Foods (003230 KS). HDC Holdings is the second largest owner of Samyang Foods.
• HDC Holdings is recommending that the company should exclude executive directors that have been sentenced to imprisonment on cases such as embezzlement and extreme negligence resulting in significant losses for Samyang Foods. This is an agenda which will be discussed in the Samyang Foods’ AGM next month on March 22nd.
• HDC Holdings is taking a very unusual move right now in going against the traditional “save face” mentality in the Korea Inc. and trying to publicly urge Samyang Foods to make changes to its BOD. 

2. Last Week in GER Research: API/Sigma, M1, Eclipx/Mcmillan and Hansoh IPO

In this version of the GER weekly research wrap, we assess the bump prospects in the Australian Pharma Industries (API AU) / Sigma Healthcare (SIG AU) potential merger. Arun updates on M1 Ltd (M1 SP) which could be delisted following an unconditional offer. In addition, we dig into the trading update for Eclipx (ECX AU) and assess the risks that Mcmillan Shakespeare (MMS AU) could walk away from the deal. Finally, we initiate on the IPO of Hansoh Pharmaceutical (HANSOH HK). A calendar of upcoming catalysts is also attached. 

More details can be found below. 

Best of luck for the new week – Rickin, Venkat and Arun