Hoban Group Enters Wire Industry... Acquires Management Rights of Daehan Electric Wire (Comprehensive)

Stock Purchase Agreement to Acquire 40% of Hanil Electric Wire's Issued Shares for 251.8 Billion KRW

[Asia Economy Reporter Onyu Lim] Hoban Group has acquired the management rights of Daehan Electric Wire to diversify its business.

Hoban Industry, a construction affiliate of Hoban Group, announced on the 29th that it signed a stock purchase agreement to acquire 40.0% of the issued shares of Daehan Electric Wire for approximately 251.8 billion KRW. Hoban Industry stated that the purpose of the acquisition is "business diversification." The scheduled date for the stock acquisition is May 31.

In the final bidding for Daehan Electric Wire held last week, Hoban Group competed fiercely with Global Sea-ah for the acquisition. Hoban reportedly succeeded in the final acquisition of Daehan Electric Wire by demonstrating superiority in price and growth plans.

Hoban was mentioned as a potential candidate in the market when Daehan Electric Wire was first put up for sale in 2014. Later, when Daehan Electric Wire was put up for sale again last year, Hoban was considered a leading acquisition candidate.

Established in 1955, Daehan Electric Wire is currently the second-largest wire manufacturer in Korea, following LS Cable & System.

A Hoban Group official said, "We have been steadily diversifying our business for several years," adding, "This acquisition is expected to create synergy with Hoban Group, which operates in construction, and to expand civil engineering orders."