[Special Stock] Woongjin Nears Preedlife Acquisition... Hits New High

Woongjin showed strong performance in early trading.

At 9:02 a.m. on May 23, Woongjin was trading at 2,040 won, up 11.66% (213 won) from the previous day, marking a new 52-week high.

Investor sentiment was boosted by news that Woongjin, which is in the process of acquiring the funeral service company Preedlife, plans to take out loans using its real estate assets, including the Lexfield CC golf course and Woongjin Playdoci, as collateral.

Previously, on April 29, Woongjin signed a stock purchase agreement (SPA) with private equity firm VIG Partners to acquire a 99.77% stake in Preedlife for approximately 883 billion won and paid a deposit of 88.3 billion won. The remaining balance must be paid by the end of May. Woongjin plans to secure an additional 100 billion won in funding by taking out loans using major assets as collateral.

A Woongjin representative stated, "The real estate value of Lexfield CC is estimated at around 300 billion won, so even if we proceed with a sale, it would be sufficient to secure the necessary funds," and added, "Woongjin Playdoci has also rapidly recovered its performance since the end of the pandemic, with its current operating margin reaching 30%."

Woongjin also announced that it is accelerating pre-merger integration (PMI) efforts with Preedlife after the acquisition. During the due diligence phase, a dedicated task force team was formed for PMI, and work is underway to maximize synergies between the two companies.