Hecto Innovation Expands Major Shareholder Stake... "Strengthening Responsible Management"

Lee Kyung-min, the largest shareholder and inside director who founded the IT-based information service company Hecto Innovation, announced plans to increase his stake.

According to Hecto Innovation on the 4th, inside director Lee Kyung-min plans to purchase all shares of Hecto Innovation held by Hecto, Hecto Innovation, and Premier Growth (Growth) M&A Investment Association through an over-the-counter purchase on the 4th of next month, raising his stake from the current 24.4% to 38.7%.

He is expected to acquire 821,137 shares (6.26%) from Hecto, 699,162 shares (5.33%) from Hecto Innovation, and 355,771 shares (2.71%) from Premier Growth M&A Investment Association. The transaction price is 11,820 KRW per share, based on the closing price on the 4th, with a total transaction amount of approximately 22.2 billion KRW.

This stake expansion focuses on strengthening responsible management. First, by acquiring Hecto Innovation shares owned by the affiliate Hecto, the issue of cross-shareholding will be resolved. Hecto Innovation plans to address major shareholder control issues and utilize the funds raised from selling treasury shares as capital for promoting core business initiatives.

Additionally, by the major shareholder purchasing all shares of the Premier Growth M&A Investment Association, which is nearing maturity, the overhang issue (potential sell-off volume) that had raised market concerns has also been eliminated.

Since its establishment in 2009, Hecto Innovation has achieved double-digit growth every year, recording excellent performance with last year's sales of 319.5 billion KRW and operating profit of 49.1 billion KRW, marking its best-ever results. The company expects that through this transaction, it will lay the foundation for medium- to long-term growth with an advanced governance structure, and based on the secured funds and management stability, it will be able to strongly pursue new business initiatives.

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