Purchase on exchange at the same price as the tender offer
Purpose of self-authenticating and becoming a complete subsidiary
[This article was reported on “Radar M,” a paid media outlet specializing in the capital market in Mail Business, on April 27 (17:07).]
EQT, a foreign private equity fund (PEF) manager, announced on the 27th that the tender offer for The Zone Bizon, which has been held since the 27th of last month, has ended.
According to a report on the results of the tender offer disclosed in the Financial Supervisory Service’s electronic disclosure system on the 24th, EQT secured a 94.0% stake in Duzon Bizon.
In addition, in a major report published on the 27th, the board of directors of Duzon Bizon announced that it had decided to proceed with a comprehensive exchange of shares. The procedure is carried out in a cash-issued manner.
When Duzon Bizon shareholders transfer their shares to EQT, EQT pays grants instead of issuing new shares in return.
The grant was set at 120,000 won per share, the same as the open purchase price. The stock exchange is scheduled to take place on June 30 after undergoing related procedures. It is expected that the actual cash payment will take more than two months from now.
The comprehensive exchange of The Zone Bizon shares was reviewed by a special committee of outside directors and independent outside advisors to comply with guidelines for directors’ code of conduct distributed by the Justice Department in February.
In particular, EQT plans to purchase all of its remaining shares at the same level as the open purchase price before proceeding with a comprehensive stock exchange.
The measure is aimed at minimizing the burden of opportunity costs incurred until the time of stock exchange by giving minority shareholders who failed to participate in the tender offer an opportunity to sell on the market.
Meanwhile, regular purchases on the market will be held from the 28th of this month until June 25, the previous trading day of the scheduled trading suspension (June 26) due to stock exchange. However, if all the remaining shares are purchased before that, it will be terminated at that time.