Starco Link Completes Rights Offering Payment... Largest Shareholder Changes to "Withus"

Starco Link announced on the 29th that its largest shareholder has changed to Withus following the payment for a capital increase through a rights offering.

Starco Link disclosed that the payment for a rights offering worth 6.5 billion won, targeting Withus, was completed on this day. A total of approximately 2.58 million new shares were issued in this rights offering, and Withus secured a 44.48% stake in the company, becoming its largest shareholder.

Withus is a company based in Yongin, Gyeonggi Province, specializing in the manufacturing and design of electronic components. Last year, it recorded 20 billion won in sales and 4.6 billion won in operating profit. The company holds total assets of 30.3 billion won and net assets of 17.8 billion won. It produces parts necessary for the maintenance of semiconductor equipment, such as printed circuit boards (PCBs).

Starco Link had its trading suspended after announcing in April that it had incurred impairment losses outside of accounts receivable. Subsequently, it was designated for substantive review and last month received a delisting decision from the Corporate Review Committee. In response, the company has submitted an appeal and is awaiting the decision of the KOSDAQ Market Committee. The Korea Exchange will convene the committee by September 2 to determine whether Starco Link will remain listed.

Starco Link was originally a gaming company, but last year it acquired and merged with Starco, a supplier of ship cabin equipment. Starco, established in 1992, manufactures and supplies cabin equipment such as fireproof walls, fireproof ceilings, fire doors, modular bathrooms, and guest rooms. Its main clients are major shipbuilding companies.

The company plans to accelerate its business normalization efforts, having raised funds through the rights offering and changed its largest shareholder. A company representative stated, "We faced various challenges in terms of creditworthiness after the trading suspension," and added, "Given the current boom in the shipbuilding industry, we expect rapid growth."