Line IPO delivers message investors want to hear 15 Jul 2016 Shares in Japan's top chat app soared on their debut. Line combines messaging with services and is adept at monetizing users. That makes it stand out against U.S. peers like WhatsApp. Although growth is slowing, low price expectations helped convince investors to tow the Line.
Japan’s chat app IPO is more Twitter than WeChat 1 Jul 2016 Messaging platform Line is going public with a valuation of up to $6.6 bln. Like Chinese rival WeChat, it has lured millions with games and virtual stickers. Yet its user base has stopped growing. Like Twitter, it must now try to squeeze more revenue out of those people.
Sickly Lotte IPO reflects two faces of South Korea 13 Jun 2016 Seoul may be Asia’s coolest destination right now, and Lotte Group’s flagship duty-free arm ought to profit handsomely. But raids have derailed the unit’s $4.5 bln listing and drawn attention to Korea’s uglier side: its powerful, opaque and poorly governed conglomerates.
Korean suitor could end U.S. chemical bid warfare 7 Jun 2016 Lotte has approached vinyl producer Axiall, which is fending off a hostile $3 bln advance from rival Westlake. Although the Asian interloper didn’t disclose specifics, Westlake is already offering an eye-popping 140 pct premium. The winning sweetener could involve more cash.
Playing it safe pays off for Samsung in mobile 28 Apr 2016 Strong sales of the new Galaxy S7 helped the Korean giant make $3.4 bln of quarterly operating profit from phones. Unlike Apple, Samsung has not bet so boldly on Chinese growth. Its success rests on more mundane factors, like cost cuts, promotional deals, and good design.
Samsung investors schooled on restructuring bets 29 Jan 2016 The heir to South Korea’s top conglomerate is selling part of his stake in Samsung SDS. That’s a disappointment for shareholders hoping for a merger between the IT services company and flagship Samsung Electronics. Guessing what Jay Y. Lee will do next is risky business.
South Korean deal offers hint at Facebook’s future 11 Jan 2016 Kakao, owner of the country’s main chat app, is buying top music streamer Loen for $1.6 bln. Asia’s big messaging outfits are all moving into content and e-commerce to cut their reliance on ads and games. The same logic could hold for Facebook’s Messenger and WhatsApp services.
Samsung offers glimpse of 2016’s tech slowdown 8 Jan 2016 The South Korean giant’s fourth-quarter operating profit was $5.1 bln, below expectations. Weak demand for smartphones was a factor. But Samsung also faces falling prices and overcapacity in chips and display. The disappointing year-end suggests tougher times lie ahead.
Global smartphone brands face mass extinction 23 Dec 2015 The industry’s growth has slipped below 10 pct for the first time. Apple and Samsung’s high-end phones are taking most of the spoils while upstarts like China’s Xiaomi pick up first-time buyers. Loss-making brands like HTC and Sony may be forced to conclude the game is over.
Samsung investors learn the benefit of family ties 9 Dec 2015 The heir to South Korea’s top conglomerate has pledged to backstop troubled Samsung Engineering’s $1 bln rights issue. Jay Y. Lee may avoid reaching into his own pocket. Yet for investors, it’s a reminder that being part of a larger group has benefits as well as drawbacks.
South Korean web bank hopes ignore offline gloom 1 Dec 2015 The country has given the green light to two groups to set up internet-only banks. Foreign web giants including Alibaba and eBay have joined local companies to back the new ventures. The euphoria is oddly disconnected from the poor returns earned by country’s largest lenders.
Samsung shows investors it can be generous too 29 Oct 2015 The South Korean group plans to buy back stock worth $10 bln and pay out up to half of its free cash flow in dividends. That will shrink its cash pile and may help the Lee family reorganise their empire. It’s a small but welcome sign that restructuring can benefit shareholders.
Samsung’s future is more Intel, less Apple 7 Oct 2015 The South Korean giant’s operating profit topped $6 bln in the third quarter – the first improvement since 2013. While smartphone sales are struggling, Samsung’s chip business is increasingly powering its bottom line. Future growth will depend more on components than handsets.
Tesco’s global hopes can survive Korea sale 4 Sep 2015 Britain’s biggest grocer is close to selling its supermarkets in South Korea, reports say. The mooted 4.3 bln stg proceeds would cut net debt in half and relieve operational headaches. Yet an exit need not be the end of Tesco’s international ambitions.
South Korea might need stronger medicine than QE 23 Jul 2015 The slowest quarterly GDP growth in six years points to a malaise deeper than a virus outbreak. A weaker currency can help with faltering exports, but it won’t free households from a debt trap. A bold cocktail of tax breaks, rebates and money-printing might be more effective.
Samsung clan could call on mobile unit next 22 Jul 2015 Investors may wonder how Samsung Electronics fits into the plans of the Lee family behind the South Korean chaebol. A rejig of the $180 bln smartphone giant could spur higher dividends. But the Lees’ recent win against Elliott suggest independent shareholders may suffer first.
Samsung win is bittersweet for ruling Lee family 17 Jul 2015 A $9 bln intergroup merger was narrowly passed, despite opposition led by Elliott. That helps the family’s succession planning. But the U.S. activist may fight on. And the spat shows South Korea’s largest conglomerate is vulnerable to restive shareholders as it restructures.
Samsung-Elliott showdown will shake up South Korea 13 Jul 2015 This week’s vote on Samsung’s $9 bln intergroup merger will be tight. Defeat at the hands of the U.S. hedge fund could usher in a new era of corporate governance. Even if the vote passes, big conglomerates will tread more carefully with independent shareholders in future.
Elliott buys new stick to beat Samsung 7 Jul 2015 The activist fund has a new lever to oppose the South Korean group’s ruling Lee family over a $9 bln merger. Buying stakes in two more group firms probably ups Elliott’s total outlay on Samsung by more than a quarter. This makes the fight more complex – and perhaps uglier.
South Korean M&A quirks hold perils for investors 24 Jun 2015 A $9.2 bln merger led by Samsung’s holding company has cast a spotlight on the country’s peculiar stock market rules. The dealmaking shows the limits of measures designed to protect independent investors and how the wider system is stacked in favour of the chaebols.