by Jang Hyowon
Published 21 Apr.2022 09:22(KST)
[Asia Economy Reporter Jang Hyowon] SL Bionics announced on the 21st that it has finalized the acquisition of 100% of the shares of the eco-friendly petroleum fuel company Woosung Industry for 35 billion KRW to restructure its business and turn its operating profit positive.
The company disclosed that after signing a preliminary acquisition agreement with Woosung Industry in February, it completed detailed due diligence and evaluation before confirming the acquisition.
The acquisition price is 35 billion KRW. Through this acquisition, the company plans to complete the merger process as soon as possible and leverage the production and sales of eco-friendly fuel oil as a new revenue opportunity to recover its operating profit.
Woosung Industry is an ESG eco-friendly fuel oil production and sales company with an annual capacity of 144,000 tons. Its main product is WS B-C oil, a high-efficiency clean fuel, which it produces and sells. It is highly regarded for possessing superior eco-friendly fuel production technology compared to competitors. According to a report by Samjong KPMG, which conducted the corporate valuation, Woosung Industry’s 2022 sales are estimated at approximately 67 billion KRW, with an operating profit of about 5.5 billion KRW.
An SL Bionics official stated, “After a comprehensive review of Woosung Industry, we judged that it could achieve a positive operating profit turnaround in 2022, which led to the decision to acquire it,” adding, “We will continue to do our best to maintain our listing and enhance shareholder value.”
He continued, “The company is currently in the process of selling its subsidiary Studio Santa Claus’s shares and management rights. We understand that Samjong KPMG, the sales agent, has started sending teasers regarding the sale to potential buyers this week,” adding, “The sale proceeds of approximately 70 billion KRW will be used to repay debts and cover the acquisition funds for Woosung Industry.”
Meanwhile, the company confirmed that it has not been sued regarding the recent unilateral media reports by Seoul Viosys and stated that it will respond strictly according to procedures once the facts related to this matter are identified.
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