4 Comments
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Ruben's avatar

Why issuing debt instead of selling SK hynix shares to buy your own stock? I guess issuing debt has market risk. Selling shares is plain arbitrage.

Origo Research's avatar

2x reasons (keep in mind this was written in Feb)

Bullish view on the underlying (SK Hynix)

From a regulatory perspective in Korea direct HoldCos cannot dip below the 20% shareholding threshold

Ruben's avatar

Ok, thanks for the insight. Its mainly regulatory then.