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

Event-Driven

<p>Finally, after an extensive buyout deal negotiation, Dongwon Group's Dongwon Industries (006040) and Dongbu Express' owner consortium (KTB PE and Q Capital Partners) reached to an agreement on this buyout deal. In this agreement, Dongwon Industries agreed to pay ₩425bil (about ₩45bil lower than the initial price they had agreed on) for full stake in Dongbu Express from the consortium led by KTB PE and Q Capital Partners. As a result, KTB PE and Q Capital Partners made around ₩100bil in profits in two and half years (33.3% ROI - about 14% annualized ROI).</p>

Finally, after an extensive buyout deal negotiation, Dongwon Group's Dongwon Industries (006040) and Dongbu Express' owner consortium (KTB PE and Q Capital Partners) reached to an agreement on this buyout deal. In this agreement, Dongwon Industries agreed to pay ₩425bil (about ₩45bil lower than the initial price they had agreed on) for full stake in Dongbu Express from the consortium led by KTB PE and Q Capital Partners. As a result, KTB PE and Q Capital Partners made around ₩100bil in profits in two and half years (33.3% ROI - about 14% annualized ROI).

Dongwon Industries' Dongbu Express Acquisition Is Finalized - Deal Summary