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

Hyundai Mobis & Hyundai Glovis Spinoff Merger Summary & Other Things

Hyundai Motor & Hyundai Mobis Pair: Owner Buying Mobis May Create Divergence in Favor of Motor

Hyundai Motor's 16% Gain & Price Diversion in All of Four Pairs

Clepsydra Capital

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

Event-Driven

<ul>
<li>If they buy back at equal daily weight, 1P and 2PB will be 0.08x and 0.09x ADTV, respectively. On the other hand, Ord and 3PB will be 0.05x and 0.04x.</li>
<li>I would not recommend trading on the possibility that this buyback will lead to a relative outperformance of 1P or 2PB versus Ord. Rather, I would pay attention to Ord.</li>
<li>I see it as a preemptive action to suppress the shareholder approval costs that may arise in consideration of various merger/spin-off scenarios ahead of the corporate restructuring.</li>
</ul>


If they buy back at equal daily weight, 1P and 2PB will be 0.08x and 0.09x ADTV, respectively. On the other hand, Ord and 3PB will be 0.05x and 0.04x.
I would not recommend trading on the possibility that this buyback will lead to a relative outperformance of 1P or 2PB versus Ord. Rather, I would pay attention to Ord.
I see it as a preemptive action to suppress the shareholder approval costs that may arise in consideration of various merger/spin-off scenarios ahead of the corporate restructuring.


Hyundai Motor Share Buyback: Details & Trading Implications