Alton Sports was established in 1994, began operations in 1996, and released the mountain bike label “Alton Brand” in 1997. It began exporting to Japan and South America in 1997 and then to the United States in 1998. In 2010, Alton Sports developed electric bikes and launched the “Cadillac” bicycle.

Due to this merger, the trading of Shinyoung SPAC stocks are suspended until the result of the due diligence for the IPO is released.

Source: translated from The Bell

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1. Daishin SPAC chooses Suntel as its first M&A target Daishin Growth Alpha SPAC, a Special Purpose Acquisition Company (SPAC)...
2. Daishin SPAC chooses Suntel as its first M&A target Daishin Growth Alpha SPAC, a Special Purpose Acquisition Company (SPAC)...

Daishin Growth Alpha itself was approved in May 2010 and was listed in August 2010. It sought to raise KRW 20 billion, but was 23% undersubscribed. Daishin bought the remaining 23% and later redistributed it to institutional investors.

Suntel was created in 2001 and is a maker of electronic parts. Hunga Tire is the biggest shareholder, holding 33.54 percent. It has sales of KRW 49.4 billion, operating earnings of KRW 4.2 billion, and has been growing fast during the last 3 years.

(Translated from Money Today)

Related posts:

1. Daishin SPAC chooses Suntel as its first M&A target Daishin Growth Alpha SPAC, a Special Purpose Acquisition Company (SPAC)...

Daishin Growth Alpha itself was approved in May 2010 and was listed in August 2010. It sought to raise KRW 20 billion, but was 23% undersubscribed. Daishin bought the remaining 23% and later redistributed it to institutional investors.

Suntel was created in 2001 and is a maker of electronic parts. Hunga Tire is the biggest shareholder, holding 33.54 percent. It has sales of KRW 49.4 billion, operating earnings of KRW 4.2 billion, and has been growing fast during the last 3 years.

(Translated from Money Today)

Related posts:

1. Daishin SPAC chooses Suntel as its first M&A target Daishin Growth Alpha SPAC, a Special Purpose Acquisition Company (SPAC)...

The report, which cited information from the company, said the two firms completed the registration of the SPAC on 28 May and plan to apply for preliminary evaluation this month.

They are planning to raise KRW 20bn (USD 17m) through the SPAC, to be used to acquire a company with a strong technology background and good prospective growth, the report added.

(Source: Asia Economy)

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LIG Investment & Securities, the South Korean brokerage, plans to list a special purpose acquisition company (SPAC) in July, the Korea Economic Daily reported.

The report, citing information from the company, said that the size of the SPAC will be KRW 25bn (USD 22.6m).

The report added that LIG is planning to use the proceeds from the potential IPO to acquire a company involved in the agricultural industry and that has advanced technology.

Whereas, Hanwha Securities, another South Korean brokerage firm, plans to list a SPAC, through which it will raise KRW 20bn (USD 18m).

According to an announcement on the Korea Stock Exchange made 23 April, Hanwha Securities submitted an application for the preliminary evaluation to list the SPAC on the junior market, KOSDAQ.

The announcement did not reveal any details about the potential target of the SPAC.

See previous post ‘Regulators call for caution as Korea’s SPACs keep hitting upper trading limits‘ for more information on Korea’s SPAC market.

(A SPAC is an entity that will raise funds through an initial public offering, with a view to acquiring a company within three years of the listing)

(Sources: Korea Economic Daily, Stock exchange announcement)

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Woori Investment & Securities, the South Korean brokerage, plans to raise KRW 45bn (USD 40m) through the listing and the price was set at KRW 15,000 (U$13.25) a share.

Woori Investment & Securities itself will manage the IPO, the announcement said.

See previous post ‘Regulators call for caution as Korea’s SPACs keep hitting upper trading limits‘ for recent information on Korea’s SPAC market.

(Source: Stock Exchange Announcement)

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Korea’s financial watchdog, the FSS, is closely monitoring Korea’s “SPAC fervor” as the listed SPACs keep hitting the upper daily trading limits.

An article is Wednesday’s Korea Herald reports -

“SPAC fervor” is continuing in Korea’s stock market, as repeated warnings failed to curb investors’ appetite for the new investment vehicle, designed to give direct access to M&A deals.

At the center of the investment fever for SPACs, or special purpose acquisition companies, is Mirae Asset, a leading financial group that is a well-known brand for mutual funds for individual investors.

Mirae Asset 1st SPAC (A121950:KOE), listed on the Kosdaq, rose by the daily limit of 15 percent yesterday (March, 23) to 3,810 won per share.

The stock hit the upper limit in seven out of a total eight trading sessions since its market debut on March 12. Yesterday’s price is more than double its IPO price of 1,500 won ($1.32).

Hyundai Securities 1st SPAC (A122350:KOE), which debuted on Kosdaq last Friday, and Daewoo Securities Green Korea SPAC (A121910:KSC), traded on the main Korea Exchange, also surged by the daily limit.

“The profitability of SPAC investment is difficult to measure until the company completes an M&A deal, but there seems to be acute investor interest in SPAC shares,” said Kim Hyung-ryeol, an analyst at NH Securities & Investment Co.

“Retail investors seem to have high hopes on SPACs that the companies will deliver hefty returns through M&A deals, but they need to remember that the higher its stock price goes, the greater their investment risk gets.”

The financial authorities are on the alert, as the white-hot market reception stoked concerns over a possible price bubble and that retail investors may get burnt.

The Financial Supervisory Service said in a statement yesterday (March 23) that the financial regulator and the bourse operator Korea Exchange, hand and hand, are conducting “intensive monitoring” of related stocks for any attempts to manipulate stock prices or irregular transactions.

“We’re closely watching the situation and will take measures if deemed necessary to stabilize the market,” Kim Seong-tae, an official at the Korea Exchange’s market oversight division.

Last week, the bourse operator issued a statement urging investors to exercise caution when investing in Mirae Asset 1st SPAC, saying the stock had gained significant ground in a short period of time.

“The FSS will put SPAC shares on the watch list for investors to take heed or order the firms to report what drove sharp stock movements in regulatory filings in case of unreasonable stock fluctuations,” an FSS official said, reported by Yonhap News on March 19.

“Overheating trends have been seen in a string of newly-listed SPAC shares,” the official said.

Responding to Korea Exchange’s request to clarify any possible reason for the recent stock price hikes, Mirae Asset said:

“We believe there is nothing that could have affected such a rapid rise in stock prices. At the moment, we’re not looking into any specific merger target or contacting any firm for that reason.”

In case of company liquidation, shareholders may get less than what they paid for the IPO, and those who bought the shares in the market at higher prices could suffer bigger losses, it warned.

According to local rules, a SPAC must merge with a company with assets exceeding 80 percent of its value within 36 months of listing, otherwise it must liquidate and distribute the escrow funds to shareholders.

“Under local rules, SPACs would go after a deal one year after their inception in order to avoid corporate taxes, which is why SPACs should be considered as long-term investment,” the Korea Institute of Finance said in a note.

High prices of SPAC stocks may hinder M&A deals, the sole purpose of the SPACs, experts said.

The unlisted firms that could be targeted by SPACs may feel a price burden when negotiating the terms of the merger, because of the SPACs’ bloated market value, they said.

Still, more SPACs are lining up for IPOs.

Tomorrow (March 25), Tong Yang Value Ocean SPAC (A122290:KSC) will get listed on the main bourse, followed by Shinhan 1st SPAC and Kyobo-KTB SPAC in April. Hidden Champaign, established jointly by Meritz Securities and Samsung Securities, is preparing for an IPO in May.

“The sharp gains seem to be partly driven by speculative investors who seek fast returns,” said Shim Jae-yup, an analysts at Meritz Securities Co., adding SPAC shares are appealing to retail investors because their stocks are cheap and they are new kinds of investment vehicles.

“The steep rises, however, are not justifiable since no specific details related with M&As have been released from the M&A-focused firms,” Shin added.

(Source: Korea Herald, Yonhap News, Korea Times )

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The unsourced report said that the size of the SPAC may be KRW 25bn (USD 22m), but did not reveal any details about the potential target.

(Source: Asia Economy)

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The report, citing information from the company, said that the size of the SPAC may be KRW 20bn (USD 17.7m). With the potential acquisition involved in the green technology, IT convergence, or biotechnology field.

(Source: Edaily)

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The Korea Economic Daily reported -

Woori Investment Securities, the South Korean brokerage, will likely list a special purpose acquisition company (SPAC) in April, and the size may be as much as KRW 45bn (USD 39m).

The report added that Woori is planning to acquire a company in the environmental, biotechnology, healthcare or alternative energy sectors.

Shinhan Investment, another South Korean brokerage, also plans to list a SPAC in April, with the size estimated to be KRW 35bn (USD 31m).

The report added that Shinhan is also looking to make acquisitions in the environmental, biotechnology, healthcare or alternative energy industries.

Whilst a report in Korea’s Money Today newspaper stated -

Meritz Securities and A.T. Kearney Korea, the South Korean brokerage and consulting firms, will jointly list a SPAC in May.

The report, citing information released by Meritz Securities, noted that it plans to raise KRW 30bn (USD 21m) for the SPAC.

Samsung Securities, another Korean brokerage, has agreed to invest KRW 5.2bn in the SPAC, prior to the IPO, and was also hired as the manager for the offering.

Meritz Securities and AT Kearney completed the registration of the SPAC on 24 February, and plan to apply for preliminary evaluation this month.

The SPAC would look for a company involved in new technology with a strong market presence, the report added.

See here for more stories on Korea’s growing SPAC market.

(Sources: Korea Economic Daily, Money Today)

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