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

Hankook Tire & Technology: M&A of Hanon System Falling Apart?

Clepsydra Capital

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

Event-Driven

<ul>
<li>Today's news indicates Hankook Tire found contingent liabilities in Hanon Systems' finances, meeting conditions to break the May agreement and putting the deal on indefinite hold.</li>
<li>Hankook Tire plans to adjust the new share price first, then the existing share price, while Hahn &amp; Co, unable to delay its exit, will likely accept it.</li>
<li>With Hahn &amp; Co likely to accept Hankook Tire’s price adjustment request, consider a long-short setup: Hankook Tire may benefit from positive momentum, while Hanon Systems faces negative dilution.</li>
</ul>


Today's news indicates Hankook Tire found contingent liabilities in Hanon Systems' finances, meeting conditions to break the May agreement and putting the deal on indefinite hold.
Hankook Tire plans to adjust the new share price first, then the existing share price, while Hahn &amp; Co, unable to delay its exit, will likely accept it.
With Hahn &amp; Co likely to accept Hankook Tire’s price adjustment request, consider a long-short setup: Hankook Tire may benefit from positive momentum, while Hanon Systems faces negative dilution.


Latest Update on Hanon Systems Stake Sale: Consider Long Short Setup on Hankook Tire & Hanon