SNK Announces Tender Offer to Voluntarily Delist

[Asia Economy Reporter Lee Seon-ae] Japan's Electronic Gaming Development Company (EGDC), the largest shareholder of SNK, announced on the 17th that it will conduct a public tender offer for its subsidiary's shares.

EGDC will publicly tender 14,048,218 shares of SNK stock (66.70% stake) at 37,197 KRW per share. The tender offer period is from today until February 10 of next year. After the tender offer, the shareholding ratio will be 21,066,797 shares (100%).

The purpose of the tender offer is "The tender offeror aims to realize a wholly owned subsidiary through the results of this tender offer to secure stable management rights, and through this, establish a swift and efficient decision-making system and enhance competitiveness," adding, "Furthermore, if the requirements under relevant laws and regulations in Korea are met through this tender offer, the tender offeror intends to voluntarily delist the target company's securities depositary receipts (KDR) from the Korea Exchange."

Under current regulations, a 95% stake is required for delisting. However, there are conditions such as stock distribution rate and trading volume for delisting, so it is possible to meet the requirements without securing the entire 95%. The planned tender offer quantity ranges from a minimum of 3,727,939 shares (17.7%) to a maximum of 14,048,218 shares (66.70%).