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

Ecopro Tender Event: Pro-Ration Risk Analysis & Arb Spread Widening Possibilities

Ecopro Tender: Pro-Ration Results, KOSDAQ 150 Corporate Action & Est. Passive Impact

Ecopro Tender: Undertaking Is a Bit Different but Should Offer a Fairly Juicy Arb Setup

Clepsydra Capital

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

Event-Driven

<h2>Swap ratio finalized</h2><p>Ecopro (acquirer) finalized the swap price at ₩95,441 on October 7. It was based on the VWAP for the three trading days from October 5 to 7. The discount rate applied in this case was 0%.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/234/192/original/1.png?1633700911" class="editor-image img-responsive" data-smartkarma-image-id="234192"></figure><p></p></section><div>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/234/196/original/4.png?1633703258" class="editor-image img-responsive" data-smartkarma-image-id="234196"></figure><p>FYI, Ecopro HN (the target company)'s swap price was finalized at ₩110,500 based on the formula below.</p>
</div><div><ul style="list-style-type: disc;">
<li>September 3 is the reference date.</li>
<li>It was calculated through Min [Close on September 3, Average(Close on September 3, 1W VWAP, 1M VWAP)].</li>
<li>It is in accordance with the regulations of KRX.</li>
</ul></div><section><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/234/193/original/image?1633701146" class="editor-image img-responsive" data-smartkarma-image-id="234193"></figure></section><div>
<div class="content-highlight"><p><strong>So, the swap ratio got finalized at 1.1577833, meaning that you will swap your one share of Ecopro HN with 1.1577833 shares of Ecopro. The target number of shares remains the same at 6,121,973 shares, worth ₩676.5B.</strong></p></div>
<table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Overview"}'>Overview</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Acquirer"}'>Acquirer</td>
<td data-sheets-value='{"1":2,"2":"Ecopro Co., Ltd."}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Ecopro Co., Ltd. (086520)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Qty."}'>- Qty.</td>
<td data-sheets-value='{"1":3,"3":7087918}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>7,087,918</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Swap price"}'><strong>- Swap price</strong></td>
<td data-sheets-value='{"1":3,"3":95441}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩95,441</strong></td>
</tr>
<tr><td colspan="2"><strong> </strong></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target company"}'>Target company</td>
<td data-sheets-value='{"1":2,"2":"Ecopro HN Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Ecopro HN Co Ltd (383310)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Qty."}'><strong>- Qty.</strong></td>
<td data-sheets-value='{"1":3,"3":6121973}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>6,121,973</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Swap price"}'><strong>- Swap price</strong></td>
<td data-sheets-value='{"1":3,"3":110500}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}'><strong>₩110,500</strong></td>
</tr>
<tr><td colspan="2"></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Swap ratio"}'><strong>Swap ratio</strong></td>
<td data-sheets-value='{"1":3,"3":1.1577833}'><strong>1.1577833</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target volume as % of SO"}'>Target volume as % of SO</td>
<td data-sheets-value='{"1":3,"3":0.400000013067683}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-3]C[0]/googlefinance(R[-4]C[0], "shares")'>40.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Target value"}'><strong>Target value</strong></td>
<td data-sheets-value='{"1":3,"3":676477981838}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-8]C[0]*R[-7]C[0]"><strong>₩676,477,981,838</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Banker"}'>Banker</td>
<td data-sheets-value='{"1":2,"2":"Daishin"}'>Daishin</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
</div>

Swap ratio finalizedEcopro (acquirer) finalized the swap price at ₩95,441 on October 7. It was based on the VWAP for the three trading days from October 5 to 7. The discount rate applied in this case was 0%.
FYI, Ecopro HN (the target company)'s swap price was finalized at ₩110,500 based on the formula below.

September 3 is the reference date.
It was calculated through Min [Close on September 3, Average(Close on September 3, 1W VWAP, 1M VWAP)].
It is in accordance with the regulations of KRX.

So, the swap ratio got finalized at 1.1577833, meaning that you will swap your one share of Ecopro HN with 1.1577833 shares of Ecopro. The target number of shares remains the same at 6,121,973 shares, worth ₩676.5B.






Overview

Acquirer
Ecopro Co., Ltd. (086520)


- Qty.
7,087,918


- Swap price
₩95,441

 

Target company
Ecopro HN Co Ltd (383310)


- Qty.
6,121,973


- Swap price
₩110,500



Swap ratio
1.1577833


Target volume as % of SO
40.00%


Target value
₩676,477,981,838


Banker
Daishin

Source: DART




Ecopro Tender: Swap Ratio Finalized, Still Juicy Spread, & We Can Buy/Tender Now