[Featured Stock] Daesung Eltec Rises on News of Considering Private Contract Sale

[Asia Economy Reporter Minwoo Lee] Daesung Eltec's stock price is on the rise. The news that the ongoing company sale is expected to proceed through a private contract appears to have acted as a positive factor.

As of 10:12 AM on the 14th, Daesung Eltec's stock price is recorded at 1,000 KRW, up 5.3% from the previous day. This is believed to be due to the news that Stick Investment, the private equity fund (PEF) promoting the sale of Daesung Eltec, is pursuing the sale through a private contract rather than a public auction.

Recently, as investment sentiment has weakened due to the economic slowdown caused by the novel coronavirus disease (COVID-19), this move is interpreted as focusing on completing the sale more quickly. Since there has only been one case of investment recovery from the 3rd blind fund, which includes Daesung Eltec and matures in 2022, it is understood that they are rushing to complete the sale to ensure smooth investment recovery for other portfolios as well.

Earlier, the Korea Exchange requested a disclosure inquiry regarding the sale of Daesung Eltec on February 17. In response, on the 17th of last month, Daesung Eltec stated that no specific decisions had been made at that time and that they would re-disclose when concrete details were finalized. The deadline for this re-disclosure is the 17th of this month.

Daesung Eltec, which celebrated its 40th anniversary last year, is a company that manufactures automotive audio, video, and navigation (AVN) systems.

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