Aekyung Group Faces Last-Minute Hurdles in Finalizing Main Contract for Sale of Aekyung Industrial (Comprehensive)

Initial Agreement to Sign Main Contract on the 15th Delayed
Aekyung Industrial Sale Price Set at Around 470 Billion Won

The sale of Aekyung Industrial by Aekyung Group is facing difficulties in the final stages of negotiations. Previously, AK Holdings, the holding company of Aekyung Industrial, and Taekwang Industrial had agreed to sign the main contract on the 15th, but the deadline has been postponed as discussions over detailed terms have taken longer than expected.

Aekyung Industrial was scheduled to finalize the contract terms with Taekwang Industrial on the afternoon of this day, reconvene its board of directors for approval, and then make a public announcement. However, as the negotiations dragged on, the sale agreement could not be concluded. It is understood that AK Holdings and Taekwang Industrial signed a memorandum of understanding (MOU) for the stock purchase agreement last month, agreeing to finalize the main contract by the 15th of this month.

Regarding this, an AK Holdings representative stated, "It seems unlikely that the sale will be finalized today," adding, "Both sides are continuing discussions on the detailed terms."

AK Holdings also held a board meeting the previous day to discuss the agenda of selling Aekyung Industrial to Taekwang Industrial, but the meeting ended without a clear conclusion. As additional agreements on the detailed contract terms were deemed necessary, the proposal was conditionally rejected.

Taekwang Industrial is understood to have concluded its board meeting the previous day with a resolution to proceed with the main contract with Aekyung Industrial. On the morning of this day, Taekwang Industrial indicated that it would make a public announcement regarding the acquisition of Aekyung Industrial in accordance with AK Holdings' final decision.

Previously, AK Holdings selected Taekwang Industrial, T2 Private Equity (PE), and Yuanta Investment Consortium as preferred bidders and signed an MOU last month to sell its 63.38% stake in Aekyung Industrial held by Aekyung Asset Management.

In order to improve the group's financial structure, Aekyung Industrial, which serves as the group's cash cow and holds significant asset value, was put up for sale to secure liquidity. The amount agreed upon by AK Holdings and Taekwang Industrial is approximately 470 billion won.