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

A Tender Offer to Purchase a 17.5% Stake in Hanwha Galleria by Kim Dong-Sun

StubWorld: More Partial Offers In The Hanwha Group Complex

Hanwha Energy Acquires An Additional 5.2% of Hanwha Corp Through a Tender Offer

Clepsydra Capital

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

Event-Driven

<ul>
<li>The Hanwha Galleria tender offer has no cancellation risk but carries proration risk, keeping the spread at around 7%.</li>
<li>For Hanwha Galleria, most floating shares are held by retail investors, and the smaller float size compared to Hansol Logistics further reduces proration risk.</li>
<li>Even though the actual trading volume might be a concern, it’s still worth thinking about going for an aggressive strategy to take advantage of the spread, which is around 7%.</li>
</ul>


The Hanwha Galleria tender offer has no cancellation risk but carries proration risk, keeping the spread at around 7%.
For Hanwha Galleria, most floating shares are held by retail investors, and the smaller float size compared to Hansol Logistics further reduces proration risk.
Even though the actual trading volume might be a concern, it’s still worth thinking about going for an aggressive strategy to take advantage of the spread, which is around 7%.


Examining the Severity of Proration Risk in the Hanwha Galleria Tender Offer