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

Trading Considerations on the OCI Demerger

OCI Holdings Announces a Tender Offer to Buy 45% Stake in OCI Co

Update on the Trading Opportunities Post OCI Spin-Off

OCI Spin-Off: Trade Opportunities Post Relisting, Valuations, & Impact on KOSPI 200

Clepsydra Capital

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

Event-Driven

<ul>
<li>This is a classic swap arbitrage of shorting the acquirer and using the tendered shares to repay it. However, executing now would be meaningless as the swap ratio isn't finalized.</li>
<li>Nevertheless, we should consider securing a long position in OCI Holdings in advance. The target (45%) is quite substantial, indicating that the practical allocation rate won't plummet dangerously below 1.</li>
<li>Additionally, the likelihood of OCI Holdings' swap price plummeting to completely nullify the 5.6% spread immediately after its determination appears to be low based on the current context.</li>
</ul>


This is a classic swap arbitrage of shorting the acquirer and using the tendered shares to repay it. However, executing now would be meaningless as the swap ratio isn't finalized.
Nevertheless, we should consider securing a long position in OCI Holdings in advance. The target (45%) is quite substantial, indicating that the practical allocation rate won't plummet dangerously below 1.
Additionally, the likelihood of OCI Holdings' swap price plummeting to completely nullify the 5.6% spread immediately after its determination appears to be low based on the current context.


OCI Swap Arbitrage: A Bit More Complex Structure, Still Juicy Spread in Play