HYUNDAI HYMS to acquire 100% of Daesung Heavy Industries via public auction for 36.1 billion won in cash, focusing on financial soundness and due diligence risks
HYUNDAI HYMS has decided to acquire 100% of the outstanding shares of Daesung Heavy Industries Co., Ltd. for 36.1 billion won through a public auction conducted by KAMCO's Onbid system.
The acquisition amount will be paid in cash, representing 14.28% of the company's equity based on the latest consolidated financial statements. The specific funding plan has not been finalized and will be disclosed via an amendment.
Daesung Heavy Industries manufactures ship components, reporting sales of 63.8 billion won and net profit of 2.7 billion won in the latest fiscal year. The purpose is to achieve external growth and business synergies through management control.
Due to the nature of the auction, limited due diligence was possible, increasing the risk of undisclosed contingent liabilities or hidden asset impairments. Investors should exercise caution.
The transaction involves cash payment, not new share issuance, so no dilution to existing shareholders occurs.
The expected settlement date is July 28, 2026, and the balance must be paid within 30 days of the auction decision date.
[AI Summary]HYUNDAI HYMS acquires a 100% stake in Daesung Heavy Industries for 36.1 billion won in cash. While the acquisition size is 14% of equity, there is no shareholder dilution as it is a cash deal. Fair pricing is ensured via public auction, but limited due diligence poses risks of hidden liabilities. Short-term financial burden and uncertainty exist, but successful synergy realization may enhance corporate value.
KOSDAQ Filing Information
Report on Major Matters (Decision to Acquire Stocks and Investment Securities of Other Corporation)