[Market Focus] Koas Hits Upper Price Limit on News of Acquiring Stakes in Three Ewha Electric Affiliates

Koas has hit the upper price limit.

As of 9:15 a.m. on September 5, Koas was trading at 11,540 won, up 2,660 won (29.95%).

The news that Koas is moving to acquire shares in Ewha Electric's three affiliates (Ewha Electric, EID, and Etron), which recently underwent liquidation trading, appears to have stimulated investor sentiment. Previously, Koas announced that it had acquired approximately 54.14 million shares of Ewha Electric (a 25% stake) for about 10.8 billion won. This amounts to 72% of Koas's cash-equivalent assets (15 billion won) as of the end of June.

However, industry experts believe that actually acquiring management control will not be easy. Ewha Electric's largest shareholder is Etron, whose stake (approximately 24%) is not significantly different from Koas's, and Koas is not in a strong position to secure additional funds for further share purchases. In fact, Koas stated in its disclosure that there will be no additional share acquisitions.