[Click eStock] "Douzone Bizon, Tender Offer Possibility Remains"

On November 10, Research Alarm analyzed that there is a possibility of a tender offer for Douzone Bizon. The firm maintained its 'positive' outlook on Douzone Bizon's stock price and raised its target price to 120,000 won.

EQT Partners, a Sweden-based global private equity fund, has decided to acquire a total of 34.85% stake in Douzone Bizon, including a 21.52% stake held by founder and Chairman Kim Yongwoo and a 13.33% stake held by Shinhan Financial Group's financial investor affiliate, which was the second-largest shareholder. Based on a price of 120,000 won per share, the total transaction amount reaches 1.3158 trillion won.

Choi Sunghwan, an analyst at Research Alarm, said, "Douzone Bizon's stock price closed at 82,800 won, down 11.35%," adding, "The main reason investors rushed to sell in disappointment was the absence of any mention of a takeover bid (TOB) in the announcement."

He continued, "The market had expected EQT to launch a tender offer to secure management control in a stable manner," and added, "Since the disclosure only specified a simple acquisition of management rights, expectations for short-term gains have weakened."

He also pointed out, "Although there was a gap of about 30% between the acquisition price of 120,000 won and the then-current stock price in the low 90,000 won range, there was no confirmation of a tender offer plan," adding, "There is growing discontent that the premium is being allocated only to the major shareholders."

Choi predicted, "The stake EQT has secured is 34.85%, which is far short of the 50% plus one share required for full management control," and added, "There is still a possibility of additional stake purchases or a tender offer going forward." He also noted, "Approval procedures remain from relevant authorities, such as the Fair Trade Commission's business combination review and the Ministry of Trade, Industry and Energy's foreign investment permit," and predicted, "EQT is highly likely to take strategic steps to increase participation from minority shareholders."

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