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

Busan City Gas Tender Offer at a Whopping 40% Premium by SK E&S:

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Event-Driven

<div class="content-highlight">
<p>SK E&amp;S is taking its subsidiary <a href="https://www.smartkarma.com/entities/busan-city-gas-co-ltd" target="_blank" data-smartkarma-citation="entities:14452:1" rel="noopener">Busan City Gas (015350 KS)</a> private through a tender offer. On 16 September, SK E&amp;S announced that it would buy 2,595,597 shares of Busan City Gas (23.6% stake) at 85,000 won per share. SK E&amp;S plans to spend 221 billion won in this tender offer. </p>
<p>Prior to this tender offer, SK E&amp;S had a 67.32% stake in Busan City Gas. SK E&amp;S plans to create a synergistic effect in terms of the eco-friendly energy business such as hydrogen and fuel cell power generation of SK E&amp;S with the hydrogen charging business operated by Busan City Gas.</p>
<ul>
<li>Following this news, Busan City Gas' share price reached limit up 30% to 80,300 won. </li>
<li>In order to provide adequate returns for the minority shareholders, SK E&amp;S is trying to complete this tender offer at a price of 85,000 won which is 40.62% higher than the average share price of the company in the past three months. </li>
</ul>
</div>


SK E&amp;S is taking its subsidiary Busan City Gas (015350 KS) private through a tender offer. On 16 September, SK E&amp;S announced that it would buy 2,595,597 shares of Busan City Gas (23.6% stake) at 85,000 won per share. SK E&amp;S plans to spend 221 billion won in this tender offer. 
Prior to this tender offer, SK E&amp;S had a 67.32% stake in Busan City Gas. SK E&amp;S plans to create a synergistic effect in terms of the eco-friendly energy business such as hydrogen and fuel cell power generation of SK E&amp;S with the hydrogen charging business operated by Busan City Gas.

Following this news, Busan City Gas' share price reached limit up 30% to 80,300 won. 
In order to provide adequate returns for the minority shareholders, SK E&amp;S is trying to complete this tender offer at a price of 85,000 won which is 40.62% higher than the average share price of the company in the past three months. 



SK E&S Makes a Tender Offer For Busan City Gas To Take It Private