GMR Materials Co., Ltd. (KOSDAQ:A032860) agreed to acquire 80% stake in Barendoor Co., Ltd. from Ilhyuk Kwon, Youngmi Park, Hyerin Kwon and Hyemin Kwon for KRW 12.8 billion on August 3, 2018. As consideration for the acquisition of 58,500 shares, a deposit of KRW 1.8 billion shall be paid on August 3, 2018, 2nd payment of KRW 1.8 billion shall be paid on August 13, 2018 and balance of KRW 8.2 billion shall be paid on closing date of trading on November 2, 2018. As on September 6, 2018, the closing date of trading is amended to September 7, 2018.

For the remaining stock of 5,500 shares, KRW 1.1 billion on the date of completion of the new factory scheduled for December 31, 2018. Under the transaction, GMR Materials Co., Ltd. acquires 50% (40,000 shares) from Ilhyuk Kwon for KRW 8 billion, 25% (20,000 shares) from Youngmi Park for KRW 4 billion, 3% (2,400 shares) from Hyerin Kwon for KRW 480 million and 2% (1,600 shares) from Hyemin Kwon for KRW 320 million. Out of the 40,000 shares, 34,500 shares (KRW 6.9 billion) will be acquired at the contract signing, and the 5,500 remaining shares (KRW 1.1 billion) will be acquired on the new factory establishment date.

During the financial year ended December 2017, Barendoor Co., Ltd. reported total assets of KRW 10.5 billion, sales of KRW 16.1 billion, net assets of KRW 7.8 billion and net profit of KRW 2.3 billion. The transaction has been resolved by the Board of GMR Materials Co. The transaction is expected to be completed on December 31, 2018.

As per the amendment report dated September 6, 2018, the transaction is now expected to be completed by September 7, 2018. Seolin Accounting Corporation acted as external rating institution to GMR Materials Co., Ltd.