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

Event-Driven

SKC and SKC Solmics announced a merger swap to take Solmics private.They set the merger ratio at 0.0688707 for each Solmic share (₩82,938 for the acquirer and ₩5,712 for the acquired).It is a small-scale merger. So, the acquirer doesn't grant its shareholders stock purchase rights unless more than 20% of the shareholders express dissent from August 27 to September 10.Otherwise, only the shareholders of the target company get to exercise rights, which they set at ₩5,125. The ceiling is ₩100bil (about one-quarter of the SO).<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/152/154/original/1.png?1597251208" class="editor-image img-responsive" data-smartkarma-image-id="152154"></figure>Today (August 13) is the last day for the acquired's shareholders to be eligible to receive stock purchase rights.For the general meeting, the record date of the shareholder register is September 9. Then, they get to exercise purchase rights from November 5 to 25.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/152/155/original/2.png?1597251505" class="editor-image img-responsive" data-smartkarma-image-id="152155"></figure>

SKC and SKC Solmics announced a merger swap to take Solmics private.They set the merger ratio at 0.0688707 for each Solmic share (₩82,938 for the acquirer and ₩5,712 for the acquired).It is a small-scale merger. So, the acquirer doesn't grant its shareholders stock purchase rights unless more than 20% of the shareholders express dissent from August 27 to September 10.Otherwise, only the shareholders of the target company get to exercise rights, which they set at ₩5,125. The ceiling is ₩100bil (about one-quarter of the SO).Today (August 13) is the last day for the acquired's shareholders to be eligible to receive stock purchase rights.For the general meeting, the record date of the shareholder register is September 9. Then, they get to exercise purchase rights from November 5 to 25.

SKC & SKC Solmics Merger Swap with Tender Offer: Terms & Status

Skc Solmics

SKC & SKC Solmics Merger Swap with Tender Offer: Terms & Status