Governance Forum: "EQT Must Protect the Rights of Douzone Bizon's Minority Shareholders"

The Korea Corporate Governance Forum stated on the 10th that measures must be put in place to protect the rights and interests of minority shareholders regarding the acquisition of Douzone Bizon by Swedish private equity firm EQT for approximately 1.3 trillion won.

In a statement released that day, the forum argued, "This is a case where the existence of minority shareholders, who hold the remaining 62% stake excluding treasury shares, is being completely ignored, resulting in damage to shareholder rights."

On November 7, Douzone Bizon announced that it had signed a contract to sell a 37.6% stake-held by its largest shareholder, Chairman Kim Yongwoo, and Shinhan Value-Up No.1 Private Equity Fund-to 'Doronicum,' a special purpose company established by EQT Partners.

The forum pointed out, "This is not a sale of the entire company, but rather a transaction in which the 38% stake held by controlling shareholder Kim Yongwoo and the fund is being transferred along with control. In the United States and other advanced economies, such a transaction is not considered a corporate acquisition or merger, but rather a pursuit of private benefit for the controlling shareholder."

The forum further emphasized, "The Douzone board of directors must carefully consider whether this private transaction, including the EQT consortium's request for due diligence, aligns with the intent of the amended Commercial Act, which requires that the interests of all shareholders be protected and that all shareholders be treated equitably."

Additionally, the forum stated, "Chairman Kim Yongwoo and the other sellers should not seek to exit at a high price solely for themselves, but must also protect the rights and interests of Douzone's minority shareholders, in line with the intent of the amended Commercial Act." The forum also stressed, "EQT should not grant a premium only to the controlling shareholder and a single securities company, but should devise a method to grant it equitably to minority shareholders as well." The forum added, "EQT should also make a public tender offer for the remaining shares at the same premium price."

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