SoCar: A Partial Tender Offer by SOQRI

• After the market close on 13 March, it was reported that SOQRI Co will be doing a partial tender offer public offering of 171,429 common shares of Socar.

• The tender offer period is from 14 March to 2 April. The tender offer price is 17,500 won which is a 21% premium to current price.

• Socar's founder Lee Jae-Woong is pushing for a tender offer to solidify the control of Socar from Lotte Rental which has recently been purchased by Affinity Equity Partners.

Conclusion First

The partial tender offer of Socar by SOQRI should have a positive near term momentum on Socar's shares.Tender offer price for Socar is 17,500 won which is 21% higher than current price. However, the tender offer is for only 171,429 common shares of Socar (0.52% of outstanding shares). SOQRI is conducting this partial tender offer rather than buying Socar shares directly from the market due to low shares trading liquidity.

Basically, Socar's founder Lee Jae-Woong is pushing for this tender offer to solidify the control of Socar from Lotte Rental (second largest shareholder) which has recently been purchased by Affinity Equity Partners.

All in all, we are positive on this partial tender offer on Socar by SOQRI as it is likely to positively impact its share price in the near term.