[Market Focus] Telcoware Hits Upper Price Limit on News of Largest Shareholder's Tender Offer

Voluntary Delisting to Follow

On May 19, Telcoware hit the upper price limit in early trading following news that the company would voluntarily delist after a public tender offer by its largest shareholder.

As of 9:29 a.m. on this day, Telcoware shares were trading at 12,750 won on the Korea Exchange, up 2,940 won, or 19.97%, the maximum daily increase allowed.

Before the market opened, Telcoware announced that Kim Hantae, the company's CEO and largest shareholder, would conduct a public tender offer for 2,332,438 common shares (a 25.24% stake) from today until June 10. The purchase price is set at 13,000 won per share, which is approximately 33% higher than Telcoware's previous closing price of 9,810 won.

The company stated that it plans to apply for voluntary delisting following the public tender offer. Kim currently holds a 30.64% stake, and if he acquires the full target stake through the tender offer, his shareholding will rise to 55.89%. Combined with Telcoware's treasury shares (44.11%), the final stake will reach 100%. If the combined holdings of the largest shareholder and treasury shares exceed 95% of total issued shares, the company is eligible for voluntary delisting.

Telcoware is a company that supplies network software to domestic mobile carriers such as SK Telecom and KT.