MBK Partners' announcement of a tender offer to acquire 29.61% of Connect Wave's shares caused Connect Wave's stock price to surge.
As of 9:25 a.m. on the 29th, Connect Wave is trading on the KOSDAQ market at 17,860 KRW, up 2,290 KRW (14.71%) from the previous close. The trading volume is 2.16 million shares, with a trading value of approximately 38.6 billion KRW. The stock opened at 17,860 KRW on the day.
Connect Wave also surged 18.85% on the previous trading day, the 26th, closing at 15,570 KRW.
According to the Financial Supervisory Service's electronic disclosure system, the investment purpose company 'Hanguk E-commerce Holdings II Co., Ltd.', established by MBK Partners, will conduct a tender offer from the 29th of this month to the 24th of next month, a period of 26 days, to purchase 16,647,864 common shares of Connect Wave (29.61% of the total potential issued shares) at 18,000 KRW per share.
The tender offer price applies a premium of 25.8% and 22.6% respectively to the volume-weighted arithmetic average prices of 14,308 KRW over the past one month and 14,685 KRW over the past three months prior to the tender offer date. Currently, including special related parties, MBK Partners holds a 58% stake in Connect Wave.
MBK Partners plans to acquire all remaining shares through the tender offer and then proceed with delisting. MBK Partners intends to purchase all shares tendered regardless of the tender offer participation rate, and the tender offer payment will be made in cash.
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