[Featured Stock] MP Group Rises on Expectations of Securing Funds for Business Normalization

[Asia Economy Reporter Hyungsoo Park] Mr. Pizza MP Group's stock price is on the rise. The expectation of securing cash through the sale of its subsidiary MP Hangang appears to be influencing the stock price.

At 2:56 PM on the 17th, MP Group was trading at 1,300 won, up 8.33% from the previous day.

As part of its management normalization, MP Group is pursuing the sale of some assets. With the decision to maintain MP Group's listing, the sale of MP Hangang is reportedly gaining momentum. MP Group holds about 40% of MP Hangang's shares. Considering MP Hangang's market capitalization of 90 billion won and the management premium, the transaction is expected to be around 40 billion won.

MP Hangang, a cosmetics manufacturing and distribution company, had maintained a profit streak since its listing in 2015 but returned to a loss last year. Last year, it recorded sales of 48.1 billion won and an operating loss of 1.8 billion won. The cumulative sales for the third quarter of this year were 24 billion won, with an operating loss of 5.1 billion won.

MP Group has appointed Chairman Yang Hee-kwon of Pelicana Chicken as the new management and is striving for management normalization. It secured funds for management normalization through the sale of treasury shares and a paid-in capital increase of 20 billion won.