ITCEN, Major Shareholder's Corporation Acquires CB... Strengthening Management Control

Strengthening Owner Control While Enhancing Shareholder Value

[Asia Economy Reporter Lim Jeong-su] IT service company ITCEN, listed on KOSDAQ, announced on the 9th that a special purpose company related to Chairman Kang Jin-mo, the largest shareholder, has acquired all the convertible bonds (CB) held by other investors. The purpose is to strengthen owner-centered management control while increasing shareholder value.

According to ITCEN, Bizentech Co., Ltd. acquired all of the 4.55 billion KRW worth of the 10th series CB issued in 2018 that had not been converted into stocks. Bizentech is a special purpose company under the effective control of Chairman Kang, providing cloud-based IT solutions and services.

With the acquisition of the CB, the shareholding ratio of Chairman Kang and related parties in ITCEN increased from 20.2% to 25.4%. ITCEN explained that the CB was acquired to strengthen management control.

Chairman Kang said, "As part of our commitment to enhancing shareholder value and responsible management, we decided to purchase this CB. By acquiring all the unconverted CB, not only is the overhang issue resolved, but the management rights and governance structure have also become more stable."

ITCEN is seeking to expand into the 4th industrial revolution based on its existing IT services. It has recently been promoting new businesses and accelerating mergers and acquisitions (M&A). In February, it acquired Ssangyong Information & Communications to expand its overseas business. An ITCEN official expressed expectations that "this year will continue the growth trend from last year."