Digital Daesung to Acquire Additional 9.9% Stake in Subsidiary I-Gam, Increasing Ownership to 93.95%... Expected to Strengthen Management Stability and Synergy
Digital Daesung resolved to acquire an additional 800,000 shares (9.9% stake) of its subsidiary I-Gam for approximately KRW 8.87 billion, using cash and treasury stock exchange. This increases its ownership from 84.05% to 93.95%.
The acquisition aims to create synergies and support mid-to-long-term growth strategy. I-Gam develops Korean language education programs and textbooks, with recent revenue and net profit declining (2025 sales KRW 22.77 billion, net profit KRW 6.18 billion) but still maintaining a solid financial structure (equity ratio 92%).
The acquisition price per share is KRW 11,093, about 2.4 times I-Gam's book value per share (approx. KRW 4,636). The premium reflects the strengthening of control.
Funding comes from internal cash and treasury stock exchange, causing no dilution for existing shareholders from new share issuance.
The additional stake brings I-Gam closer to full ownership, expected to enhance management efficiency and maximize profits. However, the acquisition amount is modest at 2.56% of total assets, limiting financial impact.
[AI Comprehensive Analysis]This additional stake acquisition is a positive signal that strengthens control over a quality subsidiary without diluting existing shareholders, likely contributing to mid-to-long-term profitability improvement. However, the relatively high premium and I-Gam's slightly declining performance warrant attention.
KOSDAQ Filing Information
Filing: Decision on Acquisition of Stocks and Investment Securities of Other Corporations