[Governance] ES Cube, Can It Overcome a Previous Failure and Successfully Sell at Three Times Market Price?

[Asia Economy Reporter Jang Hyowon] ES Cube, which previously failed to be sold, has found a new buyer. The corporation that signed the contract this time is operated by Lee Jongcheol, CEO of JC Partners. JC Partners has past experience in various investments in Korea, drawing attention to whether this acquisition will be successfully completed.

According to the Financial Supervisory Service's electronic disclosure on the 27th, GF Financial Industry No.1, the largest shareholder of ES Cube, signed a contract with 'BRXA' the day before to sell 4,366,744 shares (32.19%) at a total price of 65 billion KRW. The price per share is 14,885 KRW, about three times higher than the current stock price.

BRXA, the stock purchaser, paid 3 billion KRW as a deposit the day before and plans to pay 32 billion KRW as the middle payment by June 27 and 30 billion KRW on the closing date, July 20. BRXA must notify the transferor of the person to be appointed as an executive by June 10, deposit the middle payment amount, and establish a pledge for the transferor.

GF Financial Industry No.1 plans to appoint directors and auditors designated by BRXA at an extraordinary shareholders' meeting before the middle payment date. However, one of the existing registered executives will retain the director position. Currently, ES Cube's registered directors are CEO Shin Heemin and other non-executive director Hong Kwonpyo.

Previously, GF Financial Industry No.1 signed a stock transfer contract with Amber Capital Korea in March. However, Amber Capital Korea only paid the 3 billion KRW deposit and failed to pay the remaining balance. Although the payment schedule was changed and financial proof was to be provided, this was not fulfilled, resulting in the contract being canceled on the 18th.

The newly contracted BRXA was established in 2017 with a capital of 1 million KRW. The 100% largest shareholder and CEO of this company is Lee Jongcheol, CEO of JC Partners.

JC Partners was founded by key members who separated from ORIX Private Equity Korea (ORIX PE KOREA), which had achieved investment success in Korea. They have successfully invested in various companies such as Kakao Mobility, MG Insurance, AMT, Hwangjo, and Air Premia.

Meanwhile, ES Cube operates a functional tent manufacturing business. Most of the tents for the premium outdoor brand 'Snow Peak' are made by ES Cube. It also owns HB Savings Bank as a subsidiary and operates a financial business. As of the end of last year, total sales amounted to 125.8 billion KRW, with 51.7 billion KRW (41.1%) from the tent business and 74.1 billion KRW (58.9%) from the financial business.