Woongjin Officially Begins Acquisition of FreeD Life... Selected as Preferred Negotiation Partner

Deal Expected to Close in May After Due Diligence
Woongjin Denies Possibility of Rights Offering

Private equity firm VIG Partners has selected Woongjin as the preferred negotiator for the funeral service company Freed Life.

On the 17th, Woongjin announced that it had recently reached a preliminary agreement with VIG Partners on price conditions, and that VIG Partners granted an exclusive negotiation period, selecting Woongjin as the preferred negotiation partner.

Since the end of last year, Woongjin has been negotiating with VIG Partners to acquire all shares of Freed Life that can be obtained.

Woongjin plans to conduct due diligence on Freed Life after this date. If the due diligence is completed and negotiations on transaction terms and the main contract proceed as scheduled, the deal is expected to close in May. The share sale price will be determined based on the results of due diligence and negotiations.

Woongjin explained, "We will prioritize sufficiently considering the credit rating to avoid placing excessive burden on the current financial situation or causing market shock, and plan to arrange funding within the scope manageable by our own business."

Regarding concerns raised by some that the acquisition payment might be financed through a rights offering, Woongjin dismissed this, stating, "We are not considering that." Woongjin added, "We plan to secure acquisition funds through corporate bond issuance and borrowings from financial institutions using external credibility and assets as the funding structure, and we are currently in positive discussions with multiple institutions."

Woongjin has strategically pursued the acquisition of Freed Life to stabilize and diversify the group's business portfolio. They are planning combined products by utilizing funeral service offerings alongside products held by existing affiliates in education, information technology (IT), and leisure sectors.