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

Thoughts on Capturing the 7% Doosan Swap Spread

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>The restructuring plan of Doosan Group announced today primarily consists of two merger events aimed at transferring the stake in Doosan Bobcat held by Doosan Enerbility to Doosan Robotics.</li>
<li>The 50% price cut on Doosan Enerbility's share price for merging with Doosan Robotics boosts Robotics' advantage. This resulted in a swap spread opening with Doosan Bobcat.</li>
<li>Considering an arbitrage strategy in the Doosan Robotics and Doosan Bobcat swap needs caution due to shareholder approval risks, especially with Doosan Enerbility's low controlling stake potentially complicating the process.</li>
</ul>


The restructuring plan of Doosan Group announced today primarily consists of two merger events aimed at transferring the stake in Doosan Bobcat held by Doosan Enerbility to Doosan Robotics.
The 50% price cut on Doosan Enerbility's share price for merging with Doosan Robotics boosts Robotics' advantage. This resulted in a swap spread opening with Doosan Bobcat.
Considering an arbitrage strategy in the Doosan Robotics and Doosan Bobcat swap needs caution due to shareholder approval risks, especially with Doosan Enerbility's low controlling stake potentially complicating the process.


Details of Two Doosan Mergers Involving Enerbility, Robotics, & Bobcat