Daesung Fine Tech Co., Ltd. agreed to acquire Kangnam Co., Ltd. for approximately KRW 670 million.
July 09, 2014 at 12:00 am EDT
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Daesung Fine Tech Co., Ltd. (KOSDAQ:A104040) agreed to acquire Kangnam Co., Ltd. from Byoung-Joon Kim, Hee-Soon Park, Geun-Pyo Park, and other sellers for approximately KRW 670 million on July 9, 2014. Daesung Fine Tech will acquire Kangnam for a merger ratio of 1:0.0954889 and will issue 0.152782 million new shares. Kangnam reported total assets of KRW 9.4 billion and total common equity of KRW 659.9 million as of March 31, 2014.
On July 16, 2014, the merger ratio was revised to 1: 0.0806045 and the number of share to be issued was revised to 0.128967 million. Byoung-Joon Kim will sell 0.8 million shares of Kangnam Co., Ltd and will receive 0.06 million shares of Daesung Fine Tech Co., Ltd., Hee-Soon Park will sell 0.48 million shares of Kangnam Co., Ltd and will receive 0.04 million shares of Daesung Fine Tech Co., Ltd, Geun-Pyo Park will sell 0.16 million shares of Kangnam Co., Ltd and will receive 0.01 million shares of Daesung Fine Tech Co., Ltd. Daesung Fine Tech Co., Ltd. will thus acquire Kangnam Co., Ltd. for approximately KRW 540 million. The shares are expected to be listed on October 6, 2014. On closing, Kangnam will be dissolved and Daesung Fine Tech will survive. As of August 12, 2014, the transaction was approved by Board of Directors of Daesung Fine Tech. The transaction is expected to close on September 16, 2014.
Daesung Fine Tech. Co., Ltd is a Korea-based company principally engaged in the manufacture and sale of fine blanking molds. The Company operates its business through two segments. The Fine Blanking Business segment produces and distributes fine blanking products, such as door locks, seat recliners, brakes, safety belts, air conditioner disks, transmissions, clutch hub plates, molds and others, which are used as automobile parts. The Gangnam Renewable Energy Business segment manufactures products including solar water heaters and heat pumps.