Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

GS Holdings SoTP Valuation Analysis & Three Key Catalysts

Shorting Alert Amid Korea NPS Negative Screening on Coal: KEPCO, GS, OCI, Kumho P, LG Int, & POSCO

Korea NPS: Asset Allocation Targets & Negative Screening on Coal

Revisiting Our Basket of Amazon Related Shorts in the Korean Retail Sector

Emart - A New CEO & Big Restructuring Ahead

Buffett's Investments in Japanese Trading Companies - Positive Boost to Korean Trading Companies?

A Quick Look at the Buffet Trade and the Most Obvious Follow-Ons

LG International - Announces Share Buyback of Nearly 28% of Market Cap

Event-Driven

<p>It was announced after the market close on 10 November that <a href="https://www.smartkarma.com/entities/gs-retail-co-ltd" target="_blank" data-smartkarma-citation="entities:3867:1" rel="noopener">GS Retail (007070 KS)</a> will merge with <a href="https://www.smartkarma.com/entities/gs-home-shopping-inc" target="_blank" data-smartkarma-citation="entities:3916:1" rel="noopener">Gs Home Shopping (028150 KS)</a>. GS Retail and GS Home Shopping have market caps of  2.6 trillion won (US$2.3 billion) and 0.9 trillion won (US$0.8 billion), respectively. GS Retail's main businesses include offline retail supermarkets (GS THE FRESH), CVS stores (GS 25), and logistics warehouses. GS Home Shopping's main businesses include home shopping and online e-commerce services. After the merger date, 4.2236834 common stock of GS Retail will be issued for 1 share of GS Home Shopping shares listed in GS Homeshopping's shareholder list. </p><p>We believe that the merger between GS Retail and GS Home Shopping is a positive catalyst. Both companies have been negatively impacted by the barrage of heavy competition, especially among e-commerce driven companies such as Coupang, Naver, and Kurly in the past several years. The traditional brick and mortar competitors including Emart and Lotte Shopping have also made drastic moves to restructure their businesses and integrate their online and offline businesses. Finally, we believe this merger will have a positive impact on GS Holdings, the controlling shareholder of the combined entity.</p>

It was announced after the market close on 10 November that GS Retail (007070 KS) will merge with Gs Home Shopping (028150 KS). GS Retail and GS Home Shopping have market caps of  2.6 trillion won (US$2.3 billion) and 0.9 trillion won (US$0.8 billion), respectively. GS Retail's main businesses include offline retail supermarkets (GS THE FRESH), CVS stores (GS 25), and logistics warehouses. GS Home Shopping's main businesses include home shopping and online e-commerce services. After the merger date, 4.2236834 common stock of GS Retail will be issued for 1 share of GS Home Shopping shares listed in GS Homeshopping's shareholder list. We believe that the merger between GS Retail and GS Home Shopping is a positive catalyst. Both companies have been negatively impacted by the barrage of heavy competition, especially among e-commerce driven companies such as Coupang, Naver, and Kurly in the past several years. The traditional brick and mortar competitors including Emart and Lotte Shopping have also made drastic moves to restructure their businesses and integrate their online and offline businesses. Finally, we believe this merger will have a positive impact on GS Holdings, the controlling shareholder of the combined entity.

Korea M&A Spotlight: A Merger Between GS Retail and GS Home Shopping