Kwangmyung Electrics Major Shareholder Reacquires Control at 176% Premium
Kwangmyung Electric, a company listed on the KOSDAQ, is set to reacquire its management rights from its former major shareholder, who sold these rights over a year ago. This reacquisition comes at a staggering management premium of 176%. The circumstances surrounding the resale of the company at such a high price in a short timeframe have sparked various speculations in the capital markets.
According to the Financial Supervisory Services electronic disclosure system on the 23rd, P&C Tech from the KOSDAQ market will buy a 19.57% stake (8,483,144 shares) in Kwangmyung Electric from Nabhan Holdings for 30.5 billion KRW. The transaction price per share is 3,595 KRW, which is a 176% premium over the reference price of 1,300 KRW.
The largest shareholder of P&C Tech is Cho Kwang-sik, the former chairman of Kwangmyung Electric, while Nabhan Holdings is fully owned by Oh Chang-seok, the chairman of Mugunghwa Trust.
In March of last year, Cho and other major shareholders of Kwangmyung Electric sold a 29.98% stake to Nabhan Holdings for 38.5 billion KRW. In the same month, Cho purchased a 29.62% stake in P&C Tech, which was a subsidiary of Kwangmyung Electric, for 14 billion KRW. The following month, P&C Tech bought a 3.65% stake in Mugunghwa Trust for 17 billion KRW. Out of the 38.5 billion KRW received from the sale of Kwangmyung Electric shares, 31 billion KRW flowed back into the Mugunghwa Trust Group.
From Chos perspective, the transaction raises questions. He spent 44.5 billion KRW to reacquire the management rights of both Kwangmyung Electric and P&C Tech, which is 6 billion KRW more than the sale price of the Kwangmyung Electric shares. This has led to interpretations that there may have been some undisclosed agreements.
There are also suggestions that Mugunghwa Trust aimed to utilize Kwangmyung Electric to secure liquidity for Mugunghwa Information Technology, which is majority-owned by Nabhan Holdings. Mugunghwa Information Technology faced a delisting decision due to a refusal of audit opinions, and in September of last year, it entered into a contract to acquire management rights in Kwangmyung Electric for 20 billion KRW.
Some analysts speculate that the recent developments in these transactions could indicate complex financial maneuvers involving key stakeholders and the potential restructuring of ownership and control within the companies involved.
According to the Financial Supervisory Services electronic disclosure system on the 23rd, P&C Tech from the KOSDAQ market will buy a 19.57% stake (8,483,144 shares) in Kwangmyung Electric from Nabhan Holdings for 30.5 billion KRW. The transaction price per share is 3,595 KRW, which is a 176% premium over the reference price of 1,300 KRW.
The largest shareholder of P&C Tech is Cho Kwang-sik, the former chairman of Kwangmyung Electric, while Nabhan Holdings is fully owned by Oh Chang-seok, the chairman of Mugunghwa Trust.
In March of last year, Cho and other major shareholders of Kwangmyung Electric sold a 29.98% stake to Nabhan Holdings for 38.5 billion KRW. In the same month, Cho purchased a 29.62% stake in P&C Tech, which was a subsidiary of Kwangmyung Electric, for 14 billion KRW. The following month, P&C Tech bought a 3.65% stake in Mugunghwa Trust for 17 billion KRW. Out of the 38.5 billion KRW received from the sale of Kwangmyung Electric shares, 31 billion KRW flowed back into the Mugunghwa Trust Group.
From Chos perspective, the transaction raises questions. He spent 44.5 billion KRW to reacquire the management rights of both Kwangmyung Electric and P&C Tech, which is 6 billion KRW more than the sale price of the Kwangmyung Electric shares. This has led to interpretations that there may have been some undisclosed agreements.
There are also suggestions that Mugunghwa Trust aimed to utilize Kwangmyung Electric to secure liquidity for Mugunghwa Information Technology, which is majority-owned by Nabhan Holdings. Mugunghwa Information Technology faced a delisting decision due to a refusal of audit opinions, and in September of last year, it entered into a contract to acquire management rights in Kwangmyung Electric for 20 billion KRW.
Some analysts speculate that the recent developments in these transactions could indicate complex financial maneuvers involving key stakeholders and the potential restructuring of ownership and control within the companies involved.
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