W.S, Largest Shareholder of Sungan Materials, Acquires Additional Stake... Increases Ownership to 19.2%

Sungan Materials (CEO Lim Jongchan) announced on October 28 that its largest shareholder, W.S, and one affiliated executive have signed a contract to acquire 7 million shares of Sungan Materials from VCD Networks.

Under this acquisition agreement, W.S and one executive from an affiliated company will each acquire 3.5 million shares, totaling 7 million shares, which represents approximately 4.5% of the company's stake. The transaction is valued at 4.2 billion won, with each share priced at 600 won. The agreement was signed on October 27, and the remaining payment is scheduled for November 27.

Notably, the company stated that W.S has also secured a right of first negotiation to purchase the remaining 7,201,655 shares that VCD Networks will hold after this transaction. W.S plans to continuously increase its stake to further strengthen its management control.

Meanwhile, Sungan Materials' core textile business, which was its main business segment, turned a profit from the first quarter of this year, achieving a cumulative half-year revenue of 9.2 billion won and an operating profit of 1.6 billion won. The company is pursuing stable growth in its existing core business while also advancing into new ventures such as rare earth distribution and rare earth metal bar processing.

Recently, Sungan Materials signed a contract to import rare earth metal bars with Guangxi Hezhou Jin Guang Rare-earth Material Ltd in China and obtained export approval from the Chinese government, thereby entering the rare earth distribution business.

Sungan Materials will initially focus on the rare earth distribution business, but plans to expand by processing raw rare earth materials into metal bars and supplying them directly to clients. In other words, by securing the necessary manufacturing technology to process rare earths into metal bars and creating added value, the company aims to grow into a competitive player in the rare earth industry.

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