[Featured Stock] Seoul Auction Surges Over 14% as Acquisition Deal with Shinsegae Nears Completion

[Asia Economy Reporter Hwang Yoon-joo] Seoul Auction is soaring on news that its acquisition contract with Shinsegae is imminent.

As of 10:50 AM on the 18th, Seoul Auction is trading at 23,750 KRW, up 14.46% (3,000 KRW) from the previous day.

According to media reports on the day, the acquisition price per share by Shinsegae for Seoul Auction is likely to be in the 40,000 KRW range, including a management premium.

The largest shareholder (including related parties) holds 31.28% (5,560,666 shares as of June 30), and if Shinsegae acquires all of these shares, the acquisition amount is estimated to be up to 230 billion KRW. This excludes treasury shares of 5.27% (937,249 shares).

If Shinsegae acquires all shares of Seoul Auction, it will secure a 36.10% stake (excluding treasury shares) and become the largest shareholder of Seoul Auction.

After acquiring Seoul Auction, Shinsegae is expected to expand into the 'high-end jewelry' sector. Seoul Auction launched jewelry auctions in 2016.

However, due to its smaller scale and competitiveness compared to overseas auction companies and low consumer interest, it eventually withdrew from the jewelry business.