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

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Daelim Industrial Divestiture: Terms & Trading Situations (1P Diversion)

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KOSPI 200 Rebalancing Results: List, Volatility, Upside, & Liquidity

KOSPI 200 Rebalancing Trade Data: Recent Passive Flow, Volatility, Upside, & Liquidity

Event-Driven

<div><p>Daelim Industrial (000210) is about to complete the three-way demerger.</p></div><div>
<p>It is undergoing an equity spin-off at a split ratio of 0.44 to 0.56.</p>
<ol>
<li>DL Corp (holding company)</li>
<li>DL E&amp;C (operating company - construction)</li>
</ol>
</div><div><div><table class="table table-striped">
<colgroup>
<col width="300">
<col width="200">
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Overview"}'>Overview</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Surviving"}'><strong>Surviving</strong></td>
<td colspan="3" data-sheets-value='{"1":2,"2":"DL Corp"}'><strong>DL Corp</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Ticker"}'>- Ticker</td>
<td colspan="3" data-sheets-value='{"1":2,"2":"000210"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-2]C[0]">000210</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Bourse"}'>- Bourse</td>
<td colspan="3" data-sheets-value='{"1":2,"2":"KOSPI"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>KOSPI</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Ratio"}'>- Ratio</td>
<td colspan="3" data-sheets-value='{"1":3,"3":0.4437144}' data-sheets-numberformat='{"1":3,"2":"0.00000%","3":1}'>44.37144%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Type"}'>- Type</td>
<td colspan="3" data-sheets-value='{"1":2,"2":"Holding company"}'>Holding company</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Business"}'>- Business</td>
<td colspan="3" data-sheets-value='{"1":2,"2":"Subsidiary management &amp; investment"}'>Subsidiary management &amp; investment</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"New 1"}'><strong>New</strong></td>
<td colspan="3" data-sheets-value='{"1":2,"2":"DL E&amp;C Corp"}'><strong>DL E&amp;C Corp</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Type"}'>- Type</td>
<td colspan="3" data-sheets-value='{"1":2,"2":"Equity spin-off"}'>Equity spin-off</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Ticker"}'>- Ticker</td>
<td colspan="3" data-sheets-value='{"1":2,"2":"TBA"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>TBA</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Bourse"}'>- Bourse</td>
<td colspan="3" data-sheets-value='{"1":2,"2":"KOSPI"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>KOSPI</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Ratio"}'>- Ratio</td>
<td colspan="3" data-sheets-value='{"1":3,"3":0.5562856}' data-sheets-numberformat='{"1":3,"2":"0.00000%","3":1}'>55.62856%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Type"}'>- Type</td>
<td colspan="3" data-sheets-value='{"1":2,"2":"Operating company"}'>Operating company</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Business"}'>- Business</td>
<td colspan="3" data-sheets-value='{"1":2,"2":"Construction"}'>Construction</td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: DART"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>Source: DART</td></tr>
</tbody>
</table></div></div><div><p>The stock trading will get suspended from December 29 to January 22. The trading will resume on January 25.</p></div><div><div><table class="table table-striped">
<colgroup>
<col width="300">
<col width="200">
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="4" style="width: 723.727px;" data-sheets-note="Sang Hyun Park: We have to buy shares until BOD+1 and hold onto them until the day immediately before the ex-rights date to be eligible to receive stock purchase rights. We then have to notify our dissenting opinion until the end of dissenting opinion notice period." data-sheets-value='{"1":2,"2":"Timetable"}'>Timetable</td></tr>
<tr>
<td style="width: 278.542px;" data-sheets-value='{"1":2,"2":"Trade suspension begins"}'><strong>Trade suspension begins</strong></td>
<td colspan="3" style="width: 424.468px;" data-sheets-numberformat='{"1":5,"2":"[$-1009]mmmm\\ d\\,\\ yyyy","3":1}' data-sheets-value='{"1":3,"3":44194}'><strong>December 29, 2020</strong></td>
</tr>
<tr>
<td style="width: 278.542px;" data-sheets-value='{"1":2,"2":"Trade suspension ends"}'>Trade suspension ends</td>
<td colspan="3" style="width: 424.468px;" data-sheets-numberformat='{"1":5,"2":"[$-1009]mmmm\\ d\\,\\ yyyy","3":1}' data-sheets-value='{"1":3,"3":44218}'>January 22, 2021</td>
</tr>
<tr>
<td style="width: 278.542px;" data-sheets-value='{"1":2,"2":"Re-listing"}'><strong>Re-listing</strong></td>
<td colspan="3" style="width: 424.468px;" data-sheets-numberformat='{"1":5,"2":"[$-1009]mmmm\\ d\\,\\ yyyy","3":1}' data-sheets-value='{"1":3,"3":44221}'><strong>January 25, 2021</strong></td>
</tr>
<tr><td colspan="4" style="width: 723.727px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table></div></div><hr><p>Daelim Industrials is currently a proud member of KOSPI 200.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"KODEX 200 (₩B)"}'>Daelim Industrials in KOSPI 200 (₩B)</td></tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Weight"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>Weight</strong></td>
<td style="width: 350.909px;" data-sheets-value='{"1":3,"3":0.0021}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>0.21%</strong></td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Float MC"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'>Float MC</td>
<td style="width: 350.909px;" data-sheets-value='{"1":3,"3":2301.6}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'>2,301.6</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"MC"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'>MC</td>
<td style="width: 350.909px;" data-sheets-value='{"1":3,"3":3215.5}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'>3,215.5</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"120DA MC"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'>120DA MC</td>
<td style="width: 350.909px;" data-sheets-value='{"1":3,"3":2909.2}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'>2,909.2</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Float"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>Float</td>
<td style="width: 350.909px;" data-sheets-value='{"1":3,"3":0.7158}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>71.58%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Mirroring"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'><strong>Estimated passive money</strong></td>
<td style="width: 350.909px;" data-sheets-value='{"1":3,"3":126}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}'><strong>126.0</strong></td>
</tr>
<tr><td colspan="2" style="width: 351.818px;">Source: KRX</td></tr>
</tbody>
</table><p><strong>The KRX made it official yesterday that both DL Corp (the surviving entity) and DL E&amp;C will stay in KOSPI 200 after re-listing on January 25.</strong></p><p>Besides,</p><p>DL E&amp;C will be added to the KOSPI 200, KOSPI 200 Constructions, KRX300 and KRX300 Industrials.</p><div class="content-highlight">
<p><strong>Below is the corporate action schedule for DL E&amp;C (courtesy KRX).</strong></p>
<ul>
<li>Corporate action of DL E&amp;C will be applied after the close of trading on the first day from suspension.</li>
<li>The index market cap (index share and price) on the last trading day before the suspension will be applied in index calculation from December 29 to January 25.</li>
<li>The actual price and actual market cap will be reflected in calculating the Index on January 26.</li>
</ul>
</div>

Daelim Industrial (000210) is about to complete the three-way demerger.
It is undergoing an equity spin-off at a split ratio of 0.44 to 0.56.

DL Corp (holding company)
DL E&amp;C (operating company - construction)









Overview

Surviving
DL Corp


- Ticker
000210


- Bourse
KOSPI


- Ratio
44.37144%


- Type
Holding company


- Business
Subsidiary management &amp; investment


New
DL E&amp;C Corp


- Type
Equity spin-off


- Ticker
TBA


- Bourse
KOSPI


- Ratio
55.62856%


- Type
Operating company


- Business
Construction

Source: DART

The stock trading will get suspended from December 29 to January 22. The trading will resume on January 25.







Timetable

Trade suspension begins
December 29, 2020


Trade suspension ends
January 22, 2021


Re-listing
January 25, 2021

Source: DART

Daelim Industrials is currently a proud member of KOSPI 200.





Daelim Industrials in KOSPI 200 (₩B)

Weight
0.21%


Float MC
2,301.6


MC
3,215.5


120DA MC
2,909.2


Float
71.58%


Estimated passive money
126.0

Source: KRX

The KRX made it official yesterday that both DL Corp (the surviving entity) and DL E&amp;C will stay in KOSPI 200 after re-listing on January 25.Besides,DL E&amp;C will be added to the KOSPI 200, KOSPI 200 Constructions, KRX300 and KRX300 Industrials.
Below is the corporate action schedule for DL E&amp;C (courtesy KRX).

Corporate action of DL E&amp;C will be applied after the close of trading on the first day from suspension.
The index market cap (index share and price) on the last trading day before the suspension will be applied in index calculation from December 29 to January 25.
The actual price and actual market cap will be reflected in calculating the Index on January 26.



DL Corp Stays & DL E&C Newly Joins KOSPI 200: Trade DL E&C on Inclusion

DL Holdings Co

DL Corp Stays & DL E&C Newly Joins KOSPI 200: Trade DL E&C on Inclusion