Pavilion Private Equity signed a contract to acquire 44.36% stake in PAXNet, Inc. (KOSDAQ:A038160) from The Asia Business Daily Co., Ltd. (KOSDAQ:A127710) for KRW 65 billion on September 11, 2017. Under the terms of transaction, Pavilion Private Equity will acquire 4.9 million shares and will deposit KRW 6.5 billion in cash on September 11, 2017. Pavilion Private Equity will make a second payment of KRW 20 billion in cash on October 12, 2017 and balance of KRW 38.5 billion will be paid in cash on October 26, 2017.

The Asia Business Daily Co., Ltd. shall transfer the corresponding ownership of PAXNet, Inc. shares to Pavilion Private Equity at the time of the payment of the second payment amount and transfer the ownership of the remaining shares to Pavilion Private Equity at the completion of the payment of the balance. As per an amendment on October 12, 2017, KRW 10 billion will be paid each on October 12, 2017 and October 30, 2017 and the balance on November 10, 2017. The transaction will be funded through own funds of KRW 2 billion and borrowings of 4.5 billion.

Resolution for the transaction was passed by the Board of Directors of The Asia Business Daily on September 11, 2017. As on October 12, 2017, The Asia Business Daily Co., Ltd. sold 0.8 million shares. The transaction is expected to be completed on October 26, 2017.

As of October 12, 2017, the scheduled date of sales is amended to November 10, 2017. Samyoung Accounting Corporation acted as the external rating institution.