[At a Crossroads: Listed Companies] Haitron Systems Raises 50 Billion KRW... Who Is the New Largest Shareholder?③

[Asia Economy Reporter Jang Hyowon] The largest shareholder of KOSPI-listed Hiteuron Systems is set to change again. Since the previous largest shareholder, The Dream PE, caused some controversies, attention is focused on whether the new largest shareholder and management can stabilize the company.

According to the Financial Supervisory Service's electronic disclosure on the 25th, Hiteuron Systems announced a third-party allotment capital increase worth 10 billion KRW on the 21st. The issue price of the new shares is 7,495 KRW, which is a 10% discount compared to the reference stock price.

The recipient of the issuance is ‘KPL Investment (KPL)’. The payment date is August 20, and once the payment is completed, a total of 1,334,222 shares (15.6%) will be newly issued, making KPL the largest shareholder.

Previously, KPL was known to have had a conflict over the management rights of Hiteuron Systems with ‘The Dream Private Equity (The Dream PE)’, the former largest shareholder of Hiteuron Systems. After The Dream PE acquired the management rights of Hiteuron Systems, it was supposed to transfer them to KPL but failed to fulfill the agreement.

As a result, KPL initiated litigation, and eventually, the ‘Dream High Private Investment Partnership’ established by The Dream PE was dissolved. The Dream High Partnership had acquired a 12.51% stake from Choi Youngdeok, the former largest shareholder and president of Hiteuron, in March. These shares were all disposed of, including some sold on the market.

KPL is a corporation established in 2019 with a capital of 1 million KRW. As of the end of last year, it was in a state of capital erosion with assets of 66 million KRW and liabilities of 72 million KRW. It recorded sales of 79 million KRW and a net loss of 83 million KRW. The funds for the capital increase are expected to be raised through borrowing.

Currently, the CEO of KPL is Mr. Kim Yonggu, but until November last year, Mr. A was the CEO. Mr. A also served as a director of BK Tops until March last year.

The corporation acquiring the convertible bonds (CB) of Hiteuron Systems is also related to BK Tops. On the 21st, Hiteuron Systems announced the issuance of CBs worth 40 billion KRW along with the capital increase.

The CB issuance recipients are Troya Holdings and Jiin Holdings, each investing 20 billion KRW. Troya Holdings’ former name was Ranchagihoek, and it acquired BK Tops CBs worth 20 billion KRW in February. Troya Holdings is also a corporation with a capital of 1 million KRW, and it is presumed that the investment funds were entirely raised through loans.

Additionally, a former BK Tops executive has been named to the new board of directors. Hiteuron Systems plans to appoint Mr. Kim Hojin, a former director of BK Tops, as a new director at the extraordinary shareholders' meeting on June 4.

BK Tops is a KOSPI-listed company that was formerly known as Dongyang Networks. Previously, Mr. Lee and Mr. Cho, key figures in the Lime Asset Management scandal, used this company to circulate funds. Afterwards, former BK Tops CEO Kim Bonggyeom spun off the company and undertook restructuring efforts, including settling related debts.

However, BK Tops failed to turn around its performance and recorded operating losses for six consecutive years from 2015 through last year. Ultimately, former CEO Kim transferred his position as the largest shareholder of BK Tops to the current CEO, Jeong Sanyang, on the 21st.

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