Change in Largest Shareholder: Daon International Acquires Management Control via Leveraged Buyout... Financial Health Concerns
Previous largest shareholder Kim Won-woo and two others sold all their shares (5,826,546 shares, 41.86%), and Daon International Co., Ltd. acquired 2,073,196 shares (14.90%), becoming the new largest shareholder.
Daon International is a small unlisted kitchen appliance manufacturer with total assets of 388M KRW and equity of 79M KRW. The entire acquisition fund of 3.87B KRW was borrowed from Kratos and Song Jinyoung.
All 2,073,196 acquired shares are pledged as collateral for the acquisition loan, posing risk of additional dilution in case of default.
Daon International plans to appoint its nominated directors at an extraordinary general meeting, indicating a management change.