Crescendo Completes 300 Billion Won HPSP Block Deal... "Repaying Acquisition Financing"

Shift to Long-Term Holding Over Sale
Amid Positive Outlook for Semiconductor Market

Private equity fund manager Crescendo Equity Partners has successfully completed an after-hours block deal of HPSP shares worth 300 billion won. The discount rate was set at 9.7%, with the price per share determined at 35,350 won.

On January 7, Crescendo announced that it sold 8.4 million shares (approximately 10%) out of the 83.61 million HPSP shares it holds through a block deal. The sale price was set at 35,350 won per share, reflecting a 9.7% discount from the previous day's closing price of 39,150 won per share. The total sale amount is 300 billion won.

In the demand forecast conducted the previous day, HPSP was offered at a price range of 35,050 to 36,800 won per share, representing a 6.0% to 10.5% discount from the closing price. During the trading session, HPSP had risen by 11.86%, but after the news of the block deal, its gain narrowed to 4.43% in the after-hours Next Trade session.

This block deal attracted strong interest from overseas institutions, with demand exceeding 2 trillion won-more than six times the total sale amount. This is seen as a reflection of strong foreign investor sentiment toward the Korean semiconductor market.

Crescendo plans to use the funds secured from the block deal to repay the acquisition financing conducted in May of last year, thereby eliminating financing risk and enhancing investment stability.

A Crescendo representative stated, "We have strong confidence in the long-term growth potential of the semiconductor market, so we shifted from selling to a long-term holding strategy," adding, "Overseas institutional investors also shared this view in the recent block deal. This block deal is part of our efforts to eliminate risk factors for long-term holding."

HPSP manufactures high-pressure hydrogen annealing (HPA) equipment used in the semiconductor front-end process. Crescendo acquired management control of HPSP in 2017 through the Presto No. 6 Fund, and based on expanded performance, listed the company on KOSDAQ in July 2022. This year, Crescendo is preparing for a long-term sale of HPSP while simultaneously carrying out capital restructuring (recap).