Acquisition of 4 Million Shares for 20 Billion KRW
M&A Proceeding via Stalking Horse Method
Winix has been selected as the conditional prospective acquirer of low-cost carrier (LCC) Fly Gangwon.
On the 17th, Winix announced that it will participate in Fly Gangwon's paid-in capital increase through new share issuance and acquire 4 million shares for 20 billion KRW.
On the same day, Winix signed a conditional investment contract with Fly Gangwon and deposited 10% (2 billion KRW) of the 20 billion KRW.
Fly Gangwon, which signed a contract with the prospective acquirer Winix, will soon proceed with mergers and acquisitions (M&A) using the 'Stalking Horse' method, confirming the acquisition through the third public competitive bidding.
The Stalking Horse method involves signing a prior contract with the prospective acquirer while simultaneously conducting a public competitive bidding.
If a company offers better terms than Winix during the public competitive bidding, the contract with Winix will be terminated. If no other bidders appear, the final contract will be signed with Winix, and the acquisition process will proceed.
Accordingly, once the Seoul Bankruptcy Court issues the third sale announcement, the Fly Gangwon administrator will submit a rehabilitation plan, and creditors will review and decide whether to approve the plan.
If the creditors agree to the plan, the rehabilitation plan will be executed; if they do not agree, bankruptcy or liquidation procedures are expected to follow.
Fly Gangwon, which used Yangyang International Airport as collateral, applied for corporate rehabilitation in May last year due to ongoing management difficulties caused by the COVID-19 pandemic.
The first public competitive bidding held on October 25 last year failed due to no bidders, and the second public competitive bidding failed in February this year because the bidding company could not submit a financing plan.
It is known that acquiring Fly Gangwon requires 25 billion KRW in acquisition funds and several billion KRW more for operational preparations such as reissuance of the Air Operator Certificate (AOC) and business normalization.
Meanwhile, Winix, selected as the conditional prospective acquirer, is a home appliance manufacturer. It manufactures and sells household appliances such as air purifiers, dehumidifiers, and clothes dryers.
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