[Market Focus] Viol Shares Jump 10% Early on News of VIG Tender Offer

Shares of Viol, a company specializing in aesthetic medical devices, are on the rise. The news that private equity fund VIG Partners will delist the company after conducting a tender offer for minority shareholders' stakes at the same price as the controlling stake appears to be acting as a positive catalyst.

As of 9:08 a.m. on the 18th, shares of Viol were trading at 12,370 won, up 10.45% from the previous day. The announcement that VIG Partners would acquire management control and conduct a tender offer for both minority and majority shareholders' stakes at 12,500 won each is being interpreted as a positive factor for the stock.

On this day, VIG Partners announced that it had established a special purpose company (SPC) called Vienna Investment Purpose Company, and through this entity, it would acquire the controlling stake in Viol held by the major shareholder DMS, as well as launch a tender offer for the remaining shares. After selling a 7% stake, DMS plans to contribute its remaining approximately 28% stake to the SPC in kind, at the same price as the tender offer. DMS will then become the second-largest shareholder of the SPC and participate in management.

VIG Partners stated that it will purchase all shares tendered in the offer, provided that at least 21% of shares are acquired. The tender offer period is from June 18 to July 7.