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

HMM CEO Letter to Shareholders Concerning Share Price Decline

HMM Perpetual Bond Conversion Situation Update for Short Position

Korean Air Will Likely Face an HMM-Like CB Conversion Overhang Risk

HMM CB Conversion Is Official: New Share Listing Schedule & KOSPI 200 Corporate Actions

HMM CB Conversion on June 30: Shareholding Dilution & Float Reduction Risks

Clepsydra Capital

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

Event-Driven

<p>Currently, the largest shareholder of HMM is Korea Development Bank (KDB). And KDB and KOBC (Korea Ocean Business Corporation) jointly exercise the management rights of HMM.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Shareholders"}'>Shareholders</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Shareholding"}'>Shareholding</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Last filed"}'>Last filed</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Shares"}'>Shares</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Korea Development Bank (KDB)"}'><strong>Korea Development Bank (KDB)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.24963288725180544}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>24.96%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"2021-07-16"}' data-sheets-numberformat='{"1":1}'><strong>2021-07-16</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":101199297}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>101,199,297</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Korea Ocean Business Corporation (KOBC)"}'><strong>Korea Ocean Business Corporation (KOBC)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.034395926039941634}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>3.44%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"2018-07-05"}' data-sheets-numberformat='{"1":1}'><strong>2018-07-05</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":13943850}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>13,943,850</strong></td>
</tr>
<tr><td colspan="4"></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Bae Jae-hoon &amp; 21 others"}'>Bae Jae-hoon &amp; 21 others</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0003835024204580289}' data-sheets-numberformat='[null,3,"0.00%",1]'>0.04%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"2021-07-30"}' data-sheets-numberformat='{"1":1}'>2021-07-30</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":155469}' data-sheets-numberformat='[null,2,"#,##0",1]'>155,469</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"ESOP"}'>ESOP</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0025614584218971973}' data-sheets-numberformat='[null,3,"0.00%",1]'>0.26%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"2018-06-29"}' data-sheets-numberformat='{"1":1}'>2018-06-29</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1038396}' data-sheets-numberformat='[null,2,"#,##0",1]'>1,038,396</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Korea Credit Guarantee Fund (KoDIT)"}'>Korea Credit Guarantee Fund (KoDIT)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.060503851912776074}' data-sheets-numberformat='[null,3,"0.00%",1]'>6.05%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"2019-07-24"}' data-sheets-numberformat='{"1":1}'>2019-07-24</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":24527807}' data-sheets-numberformat='[null,2,"#,##0",1]'>24,527,807</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"NPS"}'>NPS</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.05254129438269536}' data-sheets-numberformat='[null,3,"0.00%",1]'>5.25%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"2021-06-22"}' data-sheets-numberformat='{"1":1}'>2021-06-22</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":21299846}' data-sheets-numberformat='[null,2,"#,##0",1]'>21,299,846</td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>However, KDB Chairman (Lee Dong-geul) recently said at a press conference on the 4th anniversary of his inauguration that KOBC alone will run HMM from next year. Chairman Lee declined to comment on the specific method of realizing this, but did say that it would be desirable for KDB to sell the remaining stake in HMM in stages.</p><p>In fact, KDB's complete exit is not surprising. This is because the role of the KDB itself is a state-run creditor bank, and it cannot be in charge of the management of private companies forever. On the other hand, KOBC's primary purpose is to manage a nationalized company rather than a creditor. Therefore, it is inevitable for KOBC to become the largest shareholder of HMM in the near future.</p><p><strong>But the question is how.</strong></p><div class="content-highlight"><p>In this connection, the KDB chairman had a nuance that KOBC would become the largest shareholder first and KDB would then sell the remaining stake.</p></div>

Currently, the largest shareholder of HMM is Korea Development Bank (KDB). And KDB and KOBC (Korea Ocean Business Corporation) jointly exercise the management rights of HMM.








Shareholders
Shareholding
Last filed
Shares


Korea Development Bank (KDB)
24.96%
2021-07-16
101,199,297


Korea Ocean Business Corporation (KOBC)
3.44%
2018-07-05
13,943,850



Bae Jae-hoon &amp; 21 others
0.04%
2021-07-30
155,469


ESOP
0.26%
2018-06-29
1,038,396


Korea Credit Guarantee Fund (KoDIT)
6.05%
2019-07-24
24,527,807


NPS
5.25%
2021-06-22
21,299,846

Source: DART

However, KDB Chairman (Lee Dong-geul) recently said at a press conference on the 4th anniversary of his inauguration that KOBC alone will run HMM from next year. Chairman Lee declined to comment on the specific method of realizing this, but did say that it would be desirable for KDB to sell the remaining stake in HMM in stages.In fact, KDB's complete exit is not surprising. This is because the role of the KDB itself is a state-run creditor bank, and it cannot be in charge of the management of private companies forever. On the other hand, KOBC's primary purpose is to manage a nationalized company rather than a creditor. Therefore, it is inevitable for KOBC to become the largest shareholder of HMM in the near future.But the question is how.In this connection, the KDB chairman had a nuance that KOBC would become the largest shareholder first and KDB would then sell the remaining stake.

HMM, Another Massive CB Conversion (Share Dilution) Risk & Short Trading Opportunity

HMM Co., Ltd.

HMM, Another Massive CB Conversion (Share Dilution) Risk & Short Trading Opportunity