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 Innovation & SK E&S Merger Official Disclosure: Unexpected Merger Ratio

SK Innovation & SK E&S: Summary of the Controversy Surrounding the Merger Ratio

Digging into Chosun Ilbo's Report on SK Group's SK Innovation & SK E&S Merger Plans

Clepsydra Capital

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

Event-Driven

<ul>
<li>Exceeding the ceiling doesn’t cancel the merger; SK Innovation can still proceed. With their decision confirmed, focus should shift to appraisal rights flows rather than cancellation risk.</li>
<li>We should focus on flow trading given the notable exercise size and potential for unprecedented market activity if institutions, including the NPS, exercise their rights due to the juicy premium.</li>
<li>The large exercise size and SK Innovation's KOSPI large-cap status may create unique flow trading opportunities, with potential repurchases after new shares list.</li>
</ul>


Exceeding the ceiling doesn’t cancel the merger; SK Innovation can still proceed. With their decision confirmed, focus should shift to appraisal rights flows rather than cancellation risk.
We should focus on flow trading given the notable exercise size and potential for unprecedented market activity if institutions, including the NPS, exercise their rights due to the juicy premium.
The large exercise size and SK Innovation's KOSPI large-cap status may create unique flow trading opportunities, with potential repurchases after new shares list.


The Unusual Flow Trading Development Caused by SK Innovation's Appraisal Rights Premium