Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Aprogen Pharma Rights Offer: Today Is the Last Chance Before Ex-Rights

Event-Driven

<p>Aprogen is now in the middle of a merger involving the three companies. Aprogen KIC (007460) is the surviving entity, which will absorb Aprogen Corp (unlisted) and Aprogen H&amp;G (109960). So, the shareholders of both target companies will receive Aprogen KIC ordinary shares. Below is the merger swap terms for Aprogen H&amp;G shareholders. The swap ratio is 0.33593 based on the offering prices of ₩1,991 (KIC) and ₩676 (H&amp;G). We can then exercise the stock purchase rights at ₩2,116 (KC) and ₩672 (H&amp;G). The company set the ceiling at ₩30bil for each entity.</p><p>We have to buy shares until BOD+1 (April 27) and hold onto them until the day immediately before the ex-rights date (June 25) to be eligible to receive stock purchase rights. We then have to notify our dissenting opinion until the end of the dissenting opinion notice period (July 27~August 10). After then, we can exercise stock purchase rights on August 11~31. The trading suspension begins on September 29 and runs until October 20. </p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/134/013/original/1.png?1589746523" class="editor-image img-responsive" data-smartkarma-image-id="134013"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/134/037/original/9.png?1589749873" class="editor-image img-responsive" data-smartkarma-image-id="134037"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/134/015/original/3.png?1589746553" class="editor-image img-responsive" data-smartkarma-image-id="134015"></figure>

Aprogen is now in the middle of a merger involving the three companies. Aprogen KIC (007460) is the surviving entity, which will absorb Aprogen Corp (unlisted) and Aprogen H&amp;G (109960). So, the shareholders of both target companies will receive Aprogen KIC ordinary shares. Below is the merger swap terms for Aprogen H&amp;G shareholders. The swap ratio is 0.33593 based on the offering prices of ₩1,991 (KIC) and ₩676 (H&amp;G). We can then exercise the stock purchase rights at ₩2,116 (KC) and ₩672 (H&amp;G). The company set the ceiling at ₩30bil for each entity.We have to buy shares until BOD+1 (April 27) and hold onto them until the day immediately before the ex-rights date (June 25) to be eligible to receive stock purchase rights. We then have to notify our dissenting opinion until the end of the dissenting opinion notice period (July 27~August 10). After then, we can exercise stock purchase rights on August 11~31. The trading suspension begins on September 29 and runs until October 20. 

Aprogen Pharmaceuticals

Aprogen Merger Swap: Trading Angle