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

SK Telecom: Is MSCI Rebalancing Trading Again in Action Today?

A "Nearly" Pure Arb Opportunity: SK Holdings & SK Materials Stock Swap

Merger of SK Inc & SK Materials Holdings: A Prelude to An Eventual Merger with SK Square?

SKT MSCI Downweight Is a Golden Trading Opportunity: Entry/Closing Points Discussion

SK Telecom Announcement: Split Ratio, Stock Split, Financials, Subsidiaries, & ADR Treatment

Did Passive Rebalancing Trading on SKT Start Last Friday?

Gravity Works As WeWork Doesn't; Now Plan B

Bifurcated Chinese Express Market Developing

Clepsydra Capital

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

Event-Driven

<h2>FY2021~2023 dividend policy</h2><p>SK Telecom held a 2Q earnings conference call and announced its dividend policy from this year to 2023 for the surviving company (SKT Opco). On the other hand, SKT Investment, a new company, said it plans not to pay a fixed dividend.</p><div class="content-highlight"><ul>
<li><strong>Total dividend amount = within 30~40% of annual EBITDA-CapEx (based on the surviving company's de-consolidated financials)</strong></li>
<li><strong>Starting the second quarter of this year, SKT will give out a quarterly dividend (likely to be equal-weighted)</strong></li>
</ul></div><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/223/318/original/Screen+Shot+2021-08-11+at+3.48.38+PM.png?1628712079" class="editor-image img-responsive" data-smartkarma-image-id="223318"></figure></section><p>The dividend policy for the next three years announced this time is not much different from what was already mentioned when the corporate spin-off was announced in May. However, this time, SKT revealed the size of the total annual dividend in more detail.</p><p>Last time, SKT provided rather vague guidance that it would maintain the surviving company's annual dividend at around ₩700B and keep an annual dividend per share at ₩10,000 <strong>for this year, but no specific guidance after this year.</strong></p><div class="content-highlight"><p><strong>However, this time, SKT presented a more specific criterion for calculating the total amount of dividends for the next three years. From this year to FY2023, SKT will fix the total annual dividend amount at 30~40% of the annual EBITDA-CapEx.</strong></p></div>

FY2021~2023 dividend policySK Telecom held a 2Q earnings conference call and announced its dividend policy from this year to 2023 for the surviving company (SKT Opco). On the other hand, SKT Investment, a new company, said it plans not to pay a fixed dividend.
Total dividend amount = within 30~40% of annual EBITDA-CapEx (based on the surviving company's de-consolidated financials)
Starting the second quarter of this year, SKT will give out a quarterly dividend (likely to be equal-weighted)
The dividend policy for the next three years announced this time is not much different from what was already mentioned when the corporate spin-off was announced in May. However, this time, SKT revealed the size of the total annual dividend in more detail.Last time, SKT provided rather vague guidance that it would maintain the surviving company's annual dividend at around ₩700B and keep an annual dividend per share at ₩10,000 for this year, but no specific guidance after this year.However, this time, SKT presented a more specific criterion for calculating the total amount of dividends for the next three years. From this year to FY2023, SKT will fix the total annual dividend amount at 30~40% of the annual EBITDA-CapEx.

SKT FY21~23 Dividend Policy 30~40% of EBITDA-CapEx: Valuation Studies