Ebest Investment & Securities Changes Major Shareholder to LS Networks

Financial Services Commission Approves at Regular Meeting on 18th
Only Fair Trade Commission's Corporate Merger Review Remains

Ebest Investment & Securities headquarters. Photo by Ebest Investment & Securities

The major shareholder of Ebest Investment & Securities is changing to LS Networks. This comes about nine months after the application for approval of the major shareholder change was submitted in April last year.

On the 18th, the Financial Services Commission resolved at its regular meeting to change the major shareholder of Ebest Investment & Securities from G&A Private Equity Fund (G&A PEF) to LS Networks.

LS Networks is the largest investor holding 98.8% of G&A PEF's shares, and as of June 30 last year, G&A PEF held a 61.71% stake in Ebest Investment & Securities. With this resolution, the entire stake of Ebest Investment & Securities held by G&A PEF will be transferred to LS Networks.

Following the Financial Services Commission's resolution on the same day, Ebest Investment & Securities announced through a disclosure that "LS Networks will promptly proceed with the corporate merger notification after holding a board meeting," and "the acquisition of the company's shares will be completed after the Fair Trade Commission completes its review of the corporate merger." The date of LS Networks' share acquisition may change depending on the schedule of the Fair Trade Commission's corporate merger review.

The change in major shareholder is expected to have the effect of lowering the funding interest rate for Ebest Investment & Securities. Korea Ratings stated in a report at the end of last year that "we plan to review the credit impact of the shareholder change at the time the major shareholder and shareholding structure change is finalized." Currently, Ebest Investment & Securities' credit ratings are A2+ for commercial paper and A2+ for short-term bonds.

There is also anticipation that it will be able to attract IPO volumes from LS Group subsidiaries in the future. Ebest Investment & Securities participated as an underwriter in the IPO process of LS Materials, which entered the KOSDAQ market in December last year. Currently, IPO candidates within the group include LS Mtron, LS Cable, LS MnM, SEABL and others.