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

Tender Offer To Take Hanwha Galleria Timeworld Private

Event-Driven

<p>Hanwha Galleria TW is a small-cap retail stock with a market cap of ₩150bil. Its parent company, Hanwha Galleria, announced a tender offer to take TW private. The major shareholder owns a 69.45% stake. There are 101,900 treasury shares, which represent 1.7% of SO. So, the target is the remaining 28.85%. Presumably, local retail owns most of them. There are also 1.15M tradable warrants. The acquirer also needs to buy all of them. It set the offering price at ₩892. So, the total value of the tender offer amounts to ₩46bil if fully tendered. The tender begins today and runs until Dec 23. The payment is on Dec 27.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/108/003/original/1.png?1574833063" class="editor-image img-responsive" data-smartkarma-image-id="108003"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/108/004/original/3.png?1574833073" class="editor-image img-responsive" data-smartkarma-image-id="108004"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/108/005/original/2.png?1574833081" class="editor-image img-responsive" data-smartkarma-image-id="108005"></figure>

Hanwha Galleria TW is a small-cap retail stock with a market cap of ₩150bil. Its parent company, Hanwha Galleria, announced a tender offer to take TW private. The major shareholder owns a 69.45% stake. There are 101,900 treasury shares, which represent 1.7% of SO. So, the target is the remaining 28.85%. Presumably, local retail owns most of them. There are also 1.15M tradable warrants. The acquirer also needs to buy all of them. It set the offering price at ₩892. So, the total value of the tender offer amounts to ₩46bil if fully tendered. The tender begins today and runs until Dec 23. The payment is on Dec 27.

Hanwha Galleria TW Tender Offer: Schedule, Price & Current Status