[Featured Stock] Songwon Industrial's Stock Drops Over 6% Following Sale Withdrawal News↓

On the 28th, the stock price of Songwon Industrial, a domestic specialty chemical materials company, fell by more than 6%. It appears that a flood of sell orders followed news that the largest shareholder's stake sale was canceled.

As of 3:05 PM that day, Songwon Industrial was trading at 16,340 KRW, down 1,070 KRW (6.15%) from the previous trading day.

Founded in 1965, Songwon Industrial holds the second-largest market share in the antioxidant sector of petrochemical products, following Germany's BASF. Antioxidants are additives that prevent oxidation, which causes plastics to change shape or color when exposed to external environments such as heat, cold, or light. Last year, Songwon Industrial recorded sales of 1.3295 trillion KRW and a net profit of 131.9 billion KRW.

Through a disclosure on the same day, Songwon Industrial announced that the largest shareholder, via the lead manager Goldman Sachs, had selected preliminary candidates to discuss the stake sale but ultimately decided not to proceed with the sale after considering comprehensive conditions including the sale terms.

Industry insiders expected the preferred bidder to be selected after the Christmas holiday, but the sale was suddenly withdrawn. The main bidders who participated in the final bid on the 11th included SIMPAC, TKGTaekwang (formerly Taekwang Industrial), and IMM Private Equity (PE).

The stake initially planned for sale was 35.65%, held by the Songwon Industrial major shareholder family. The desired sale price for this stake was reported to be around 300 to 400 billion KRW. It appears that the buyer and Songwon Industrial could not reach an agreement on the sale price or structure.