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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Clepsydra Capital

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

Event-Driven

<p>For those who aren't familiar with this Hanssem deal, here is a quick summary:</p><ul>
<li><strong>In July, Hanssem's major shareholder signed an MOU to sell a 30.21% stake to IMM PE for 1.5 trillion won.</strong></li>
<li><strong>And Lotte Shopping will participate as a strategic investor (SI) by investing 299.5 billion won in a fund created by IMM PE for the acquisition.</strong></li>
</ul><section class="figure"><hr>
<p><a href="https://www.koreatimes.co.kr/www/biz/2021/07/602_312155.html" target="_blank" rel="noopener">Here is the link to the news article about the MOU (source: Korea Times). </a></p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/229/771/original/Screen+Shot+2021-09-14+at+1.03.41+PM.png?1631639045" class="editor-image img-responsive" data-smartkarma-image-id="229771"></figure></section><p><a href="https://koreajoongangdaily.joins.com/2021/09/10/business/industry/lotte-shopping-hanssem-imm/20210910193400446.html" target="_blank" rel="noopener">Here is the link to the news article about Lotte Shopping investing in the fund created by IMM PE for the acquisition (source: JoongAng Daily).</a></p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/229/772/original/Screen+Shot+2021-09-14+at+1.06.00+PM.png?1631639174" class="editor-image img-responsive" data-smartkarma-image-id="229772"></figure></section><hr><p><strong>Now, an unexpected event occurred in this deal that was expected to be completed smoothly. Teton Capital Partners, Hanssem's second-largest shareholder, has taken legal action.</strong></p><p>Teton Capital first purchased Hanssem shares in October 2009. At that time, the stock price of Hanssem was 9,900 won. Teton expanded its stake to 5% in September 2011 and became subject to the disclosure of changes in its stake. As of the end of June this year, Teton's stake was 8.43%.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/229/774/original/Screen+Shot+2021-09-14+at+12.54.53+PM.png?1631639664" class="editor-image img-responsive" data-smartkarma-image-id="229774"></figure></section><p>So what are the legal actions Teton Capital has taken? The Korea Times article below summarizes this well.</p><p><a href="https://www.koreatimes.co.kr/www/biz/2021/09/175_315422.html" target="_blank" rel="noopener">Here is the link to the news article about Teton Capital taking legal actions.</a></p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/229/775/original/Screen+Shot+2021-09-14+at+1.15.36+PM.png?1631640566" class="editor-image img-responsive" data-smartkarma-image-id="229775"></figure></section><div class="content-highlight">
<p><strong>The key reason for Teton Capital's legal action is the MANDATORY TENDER OFFER.</strong></p>
<p><strong>Yes, Teton requests the court to legally guarantee a mandatory tender offer to minority shareholders in this deal.</strong></p>
</div>

For those who aren't familiar with this Hanssem deal, here is a quick summary:
In July, Hanssem's major shareholder signed an MOU to sell a 30.21% stake to IMM PE for 1.5 trillion won.
And Lotte Shopping will participate as a strategic investor (SI) by investing 299.5 billion won in a fund created by IMM PE for the acquisition.

Here is the link to the news article about the MOU (source: Korea Times). 
Here is the link to the news article about Lotte Shopping investing in the fund created by IMM PE for the acquisition (source: JoongAng Daily).Now, an unexpected event occurred in this deal that was expected to be completed smoothly. Teton Capital Partners, Hanssem's second-largest shareholder, has taken legal action.Teton Capital first purchased Hanssem shares in October 2009. At that time, the stock price of Hanssem was 9,900 won. Teton expanded its stake to 5% in September 2011 and became subject to the disclosure of changes in its stake. As of the end of June this year, Teton's stake was 8.43%.So what are the legal actions Teton Capital has taken? The Korea Times article below summarizes this well.Here is the link to the news article about Teton Capital taking legal actions.
The key reason for Teton Capital's legal action is the MANDATORY TENDER OFFER.
Yes, Teton requests the court to legally guarantee a mandatory tender offer to minority shareholders in this deal.


Hanssem Vs. Teton Capital Partners on Mandatory Tender Offer in Korea

Hanssem Co Ltd

Hanssem Vs. Teton Capital Partners on Mandatory Tender Offer in Korea