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>Kakao merges with Kakao Commerce again. Kakao Commerce was spun off from Kakao three years ago. Kakao internally notified its employees of the merger with Kakao Commerce yesterday. Both companies plan to hold a board meeting next week (likely June 22) to approve the merger. They are reportedly discussing a plan to merge in the third quarter at the earliest.</p><p>Kakao Commerce has been in charge of operating Kakao's shopping-related services, such as Kakao Talk Gift. However, Kakao Commerce recently boosted its operating operation by merging Kakao Makers, the next-generation ordering platform. Through this merger, Kakao plans to shift its main business from advertising to online commerce. In particular, this merger is intended to prevent a situation in which the local online commerce market leads to an oligopoly between Coupang and Naver.</p><hr><h2>Regulatory filing</h2><p>Kakao Corp said in a regulatory filing that nothing had been finalized yet. Therefore, it now has to provide a follow-up filing within a month or at the time of finalization. The local market generally considers this type of not-denying response in a regulatory filing an acknowledgment. So, it'd be safe to assume that this merger will proceed.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/213/011/original/Screen+Shot+2021-06-14+at+2.51.47+PM.png?1623696739" class="editor-image img-responsive" data-smartkarma-image-id="213011"></figure></section>

Kakao merges with Kakao Commerce again. Kakao Commerce was spun off from Kakao three years ago. Kakao internally notified its employees of the merger with Kakao Commerce yesterday. Both companies plan to hold a board meeting next week (likely June 22) to approve the merger. They are reportedly discussing a plan to merge in the third quarter at the earliest.Kakao Commerce has been in charge of operating Kakao's shopping-related services, such as Kakao Talk Gift. However, Kakao Commerce recently boosted its operating operation by merging Kakao Makers, the next-generation ordering platform. Through this merger, Kakao plans to shift its main business from advertising to online commerce. In particular, this merger is intended to prevent a situation in which the local online commerce market leads to an oligopoly between Coupang and Naver.Regulatory filingKakao Corp said in a regulatory filing that nothing had been finalized yet. Therefore, it now has to provide a follow-up filing within a month or at the time of finalization. The local market generally considers this type of not-denying response in a regulatory filing an acknowledgment. So, it'd be safe to assume that this merger will proceed.

Kakao's Timely Trick to Defend Its Inflated Share Price: Merger with Kakao Commerce