KOREA ADVANCED MATERIALS Decides to Acquire 100% of Live Connection from Largest Shareholder for New Business Expansion
KOREA ADVANCED MATERIALS resolved at its board meeting on June 2, 2026 to acquire 640,000 shares representing 100% of Live Connection from its largest shareholder Satoshi Holdings for approximately 3.4 billion won in cash. The funds will be sourced from internal reserves and the acquisition is scheduled for June 11, 2026.
The purpose is to expand sales and pursue new business ventures. Live Connection is an entertainment company specializing in event planning and production, but its recent financials show net losses and equity of 2.98 billion won against the purchase price.
This is a related-party transaction with the largest shareholder, and the acquisition price includes a 14% premium over equity for a loss-making entity, which may pressure near-term earnings. Additionally, the company has plans for a third-party allotment including convertible bonds within six months, posing potential dilution risk. There is no change in control.
No separate shareholder return policy was disclosed.
[AI Summary]KOREA ADVANCED MATERIALS is acquiring a loss-making company from its largest shareholder to drive new business, but the financing from internal funds limits financial strain. The focus is on long-term diversification rather than short-term profit improvement, and investors should consider dilution risk from upcoming convertible bond issuance.
KOSDAQ Filing Information
Filing: Report on Major Matters (Decision to Acquire Stocks and Investment Securities of Other Corporation)