WIZIT Co., Ltd. (KOSDAQ:A036090) and Seven Star Works Co., Ltd. (KOSDAQ:A121800) signed a contract to acquire 18.5% stake in Omnitel, Inc. (KOSDAQ:A057680) from Kyungsun Kim for KRW 15 billion on January 20, 2017. Under the terms, Kyungsun Kim will sell 2.22 million shares to WIZIT Co., Ltd. for KRW 10 billion and 1.11 million shares to Seven Star Works Co., Ltd. for KRW 5 billion. As reported, KRW 1.5 billion will be paid as deposit at the time of contract signing, KRW 8.5 billion will be paid on the fifth business day after the due diligence end date, scheduled to be February 10, 2017 or one business day after the receipt of due diligence report date, whichever comes first.

After the closing of nineteenth general meeting of shareholders, WIZIT Co., Ltd. and Seven Star Works Co., Ltd will pay KRW 5 billion. As of February 9, 2017, WIZIT Co., Ltd. completed the acquisition of 12.3% stake in Omnitel, Inc. from Kyungsun Kim. The escrow for the balance will be released after the nineteenth general meeting of shareholders, following which Kim, Kyung-Sun, will transfer 1.1 million shares to Seven Star Works Co., Ltd. After completion of the transaction, Kyungsun Kim will hold no shares in Omnitel, Inc. The transaction was funded by own funds.

The transaction is subject to the completion of due diligence. The transaction was resolved by the Board of Directors of WIZIT Co., Ltd. on January 20, 2016. The transaction is expected to close on February 10, 2017.

As of February 9, 2017, the deal is expected to close on February 9, 2017. EUGENE Accounting Corporation acted as an external rating institution in the transaction.