Acquisition of Lee Kyung E&C 100% for 38.5B won with planned 3rd-party allotment
KOYJ decided to acquire 40,000 shares (100%) of Lee Kyung E&C Co., Ltd. for 3.85 billion won (self-funded). Purpose: entry into industrial wastewater treatment and resource recovery.
The acquisition price is approximately 10.6% below the DCF valuation range (4.364 billion to 4.907 billion won) by external appraiser Sungyul Accounting Corporation.
The target company posted a net loss of 457 million won in the most recent fiscal year, with equity of 469 million won, indicating weak financials.
The disclosure states a plan for a third-party allotment within 6 months, implying potential future dilution.
KOSDAQ Filing Information
Filing: Report on Major Matters (Decision to Acquire Stocks and Investment Securities of Other Corporation)