Aekyung Industrial to Be Sold to Taekwang Group

Aekyung Group Sells 63% Stake in Cosmetics and Household Goods Subsidiary Aekyung Industrial
Sale Price Estimated at High 400 Billion Won Range

Aekyung Group is selling Aekyung Industrial, its cosmetics and household goods business, to Taekwang Group.

On September 12, AK Holdings, the holding company of Aekyung Group, announced that it has selected a consortium composed of Taekwang Industrial, T2 Private Equity, and Yuanta Investment as the preferred bidder for the acquisition of Aekyung Industrial, and has signed a memorandum of understanding (MOU) for a stock purchase agreement.

This transaction involves the sale of approximately 63% of Aekyung Industrial shares held by AK Holdings and Aekyung Asset Management, with the sale price reported to be in the high 400 billion won range.

Aekyung Group stated, "Aekyung Group has been reviewing various measures to improve the group's financial structure and readjust its business portfolio," adding, "The schedule for the stock purchase agreement and details including the transaction amount may change depending on the contract process and discussions among stakeholders."

Aekyung Group has been pursuing the sale of affiliates such as Aekyung Industrial to ease the group's financial burden.

The funds secured from the sale of Aekyung Industrial are expected to be used for the repayment of debts, including stock-backed loans, and to support affiliates facing sluggish business conditions, such as Aekyung Chemical in the chemical sector and AK Plaza in the retail sector.

At the end of last month, Aekyung Group also completed the sale of Jungbu Country Club to The Siena Group, securing approximately 230 billion won.