KG Inicis guarantees 90 billion won for subsidiary KG Capital Holdings' acquisition of K Car Capital
KG Inicis decided to provide a joint guarantee of 90 billion won for its subsidiary KG Capital Holdings to borrow 75 billion won for the acquisition of K Car Capital.
The guarantee amount corresponds to 11.87% of equity capital of 758.2 billion won based on the latest consolidated financial statements with a guarantee period of 5 years from the borrowing date.
Total debt guarantee balance increases to 516.3 billion won expanding financial risk. While the acquisition aims for business expansion the debt burden may affect the subsidiary's financial soundness.
[AI Summary]The funding for acquiring K Car Capital is expected to secure growth momentum but the 90 billion won guarantee amounting to 11.87% of equity and total guarantee balance of 516.3 billion won raise financial risk requiring cautious approach.