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

KB Financial – Bigger Is Not Always Better

KB Financial: A Staple for a GEM Portfolio

Gravity Works As WeWork Doesn't; Now Plan B

Event-Driven

KB needs money to complete the Prudential Life acquisition. Carlyle requires a fresh restart in Korea's private equity market. So, each has what the other wants. Then, what's the deal? Carlyle offers ₩240bil in the form of EB with KB treasury shares as a conversion target (and up to ₩500bil through new financing deals later).They set the conversion price at ₩48,000 (a 36.17% premium to the last close) for 5M shares (1.2% of the SO). These EBs carry a maturity of five years.The conditions seem not too bad for KB, but I guess not too exciting either.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/140/826/original/13.png?1592489027" class="editor-image img-responsive" data-smartkarma-image-id="140826"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/140/850/original/21.png?1592491916" class="editor-image img-responsive" data-smartkarma-image-id="140850"></figure>

KB needs money to complete the Prudential Life acquisition. Carlyle requires a fresh restart in Korea's private equity market. So, each has what the other wants. Then, what's the deal? Carlyle offers ₩240bil in the form of EB with KB treasury shares as a conversion target (and up to ₩500bil through new financing deals later).They set the conversion price at ₩48,000 (a 36.17% premium to the last close) for 5M shares (1.2% of the SO). These EBs carry a maturity of five years.The conditions seem not too bad for KB, but I guess not too exciting either.

KB & Carlyle Partnership: Opportunity to Trade on KB/Shinhan Pair