[Special Stock] Daegu Department Store Shares Rise on Expectations of Progress in Management Stake and Real Estate Sales

Daegu Department Store's stock price is soaring in the stock market on the 6th as it officially begins the sale of management shares and real estate.

As of 9:58 AM on the day, Daegu Department Store's stock price is trading at 7,160 KRW, up 16.05% from the previous day's closing price. The price started rising from the market opening and at one point exceeded 7,600 KRW during the morning session.

Daegu Department Store is promoting a public sale of its management shares. The sale target is 32.25% of shares held by Chairman Gu Jeong-mo and other related parties.

Additionally, it has put its owned real estate up for sale. These include the Daegu Department Store Dongseong-ro main branch (closed in 2021), Daegu Dong-gu Sincheon-dong Daebak Outlet, and the Dong-gu Sinseo-dong logistics center?three properties in total. The aim is to improve the financial structure by selling idle assets.

The sale is being managed by Samjong KPMG. According to the investment banking (IB) industry, several potential buyers have shown interest in the public bidding process for the management shares and real estate sale.

When the sale news was first announced on the 29th of last month, the stock price rose 17%. After undergoing a correction over five trading days, it is now showing a sharp upward trend again on this day.

Meanwhile, the main branch of Daegu Department Store remains closed due to financial difficulties, and in 2022, negotiations to sell the building to the real estate development company JHB Holdings fell through.