JAYJUN Cosmetic Acquires Convertible Bonds from Second Largest Shareholder... Expecting Performance Recovery

[Asia Economy Reporter Hyungsoo Park] The second largest shareholder of Jayjun Cosmetic has acquired convertible bonds (CB) and is expanding its stake.

Jayjun Cosmetic announced on the 27th that Ido Healthcare acquired CB worth approximately 4.2 billion KRW. Jin-hyung Lee, chairman of the Jayjun Cosmetic board, also serves as CEO of Ido Healthcare.

If Ido Healthcare converts the acquired CB into shares, Jayjun Cosmetic's stake will increase from the existing 3.8% to 6.94%.

A company official explained, "Ido Healthcare, the second largest shareholder, exercised a call option to acquire the CB," adding, "It appears they highly evaluated the mid- to long-term growth potential."

He continued, "Jayjun Cosmetic plans to focus on laying the groundwork for growth through new product development and business diversification."

An Ido Healthcare official stated, "Due to the spread of the novel coronavirus infection (COVID-19), the global economy and stock markets have been negatively affected," and explained, "We judged that Jayjun Cosmetic's stock price is significantly undervalued compared to its intrinsic value and performance expectations." He added, "We expect Jayjun Cosmetic's performance to improve this year."

Jayjun Cosmetic has strengthened its market competitiveness not only through its cosmetics business including mask packs but also by entering the inner beauty market with collagen product launches and expanding new brands and products in the H&B (Health & Beauty) business.

This content was produced with the assistance of AI translation services.