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

Three Ways of Settling Nexon Inheritance Tax Payment: Each Way's Ramifications

Nexon Buyback May Signal End To Near-Term Relative Outperformance

The Passing of Nexon Founder KJJ & Controlling Stake Sale Event 2.0

Clepsydra Capital

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

Event-Driven

<ul>
<li>A critical issue arose lately. The Nexon heirs do not have collateral for installment payment. The Korea NTS doesn't accept shares of an unlisted company as collateral for tax payment.</li>
<li>So, the contingency plan is a direct equity sale. The more feasible would be for NXC to sell its stake in Nexon for the convenience of valuation and finding buyers.</li>
<li>The deal size is so large that it can come out in multiple block deals rather than a single buyer deal by the end of October.</li>
</ul>


A critical issue arose lately. The Nexon heirs do not have collateral for installment payment. The Korea NTS doesn't accept shares of an unlisted company as collateral for tax payment.
So, the contingency plan is a direct equity sale. The more feasible would be for NXC to sell its stake in Nexon for the convenience of valuation and finding buyers.
The deal size is so large that it can come out in multiple block deals rather than a single buyer deal by the end of October.


What We Should Know About the Nexon Inheritance Tax Dilemmas