KOSDAQ-listed iFamilyS recorded its daily upper limit. This is interpreted as having boosted investor sentiment following news that Marubeni, one of Japan’s top five general trading companies, plans to acquire a stake in iFamilyS.
According to the Korea Exchange, iFamilyS closed trading on the 23rd at 10,940 won, up 29.93% from the previous trading day.
The day before, iFamilyS disclosed that WellRiant, an investment company in which Marubeni holds a 100% stake, plans to acquire up to 28% of the company’s shares through a tender offer. The tender offer price is 12,000 won per share, a level 42.5% higher than the closing price on the 22nd (8,420 won). The funds to be invested in the tender offer amount to approximately 56 billion won at most.
The tender offer period is 20 days, from the 23rd to the 11th of next month, with the settlement date on November 13. The target for the tender offer ranges from a minimum of 3,336,277 shares (20%) to a maximum of 28%. If the number of shares submitted is below the minimum quantity, none will be purchased; if it exceeds the maximum, purchases will be made proportionally. NH Investment & Securities is the lead underwriter for the tender offer.
If the tender offer succeeds, Marubeni will become a major shareholder in iFamilyS. However, even after the tender offer, co-representative director Kim Tae-wook will maintain his position as the largest shareholder.
According to the tender offer prospectus, co-representative director Kim Tae-wook (28.4% stake) and co-representative director Kim Seong-hyeon (14% stake) have agreed not to participate in this tender offer. If the tender offer is completed at the maximum quantity, the combined stake of Marubeni’s side and the two co-representative directors will reach 70.4%. Even if only the minimum quantity is secured, the combined stake will be 62.4%.
Marubeni explained that this share acquisition is aimed at expanding strategic cooperation between the two companies. iFamilyS has entered into a strategic business partnership with Marubeni and decided to establish an investment committee, a business development department, and a management planning department. Marubeni will support iFamilyS’s entry into overseas markets and pursue the discovery of global investment opportunities.
iFamilyS is a company where Kim Tae-uk-i (CEO), the husband of actress Chae Si-ra and a businessman with a background in music, serves as co-representative director. It is a K-beauty company listed on the KOSDAQ market in 2021. The company has expanded its business led by the color cosmetics brand “ROMAND,” particularly securing high recognition in the Japanese market. In the first half of this year, revenue was 113.5 billion won and operating profit was 10.5 billion won; while revenue increased by 1.3% year-on-year, operating profit decreased by 26.6%.
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