Nature Republic Embracing Ssangbangwool... CEO Jung Un-ho Says "Not an Overambitious Acquisition"

Jung Un-ho, CEO of Nature Republic, stated on the 22nd that the acquisition of the underwear company Ssangbangwool is "not an excessive acquisition."

In a statement released that day, CEO Jung addressed concerns that his company, Segye Prime Development, does not have sufficient financial capacity for the Ssangbangwool share acquisition, calling such claims "speculative reporting."

According to Segye Prime Development's audit report, as of 2023, operating revenue was 3.5382 billion KRW, operating profit was 2.17224 trillion KRW, and cash equivalents were approximately 874.4 billion KRW.

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Because of this, some have analyzed that the convertible bonds (CB) worth 7 billion KRW issued by Nature Republic on the 17th were used as acquisition funds. The convertible bonds have a nominal interest rate of 5% and a maturity interest rate of 15%. CEO Jung strongly requested, "I urge that reporting related to this acquisition be based on facts," adding, "This is by no means an excessive acquisition, and I also ask that posting or sharing unverified information or speculative content on SNS and other online platforms be refrained from."

Earlier, Nature Republic's subsidiary Segye Prime finalized the acquisition process by signing a sales contract on the 20th to acquire 12.04% of shares held by Kwangrim, the largest shareholder of Ssangbangwool. The acquisition amount was a total of 7 billion KRW, and with the contract completed, Segye Prime became the largest shareholder of Ssangbangwool. Segye Prime is a real estate rental company in which CEO Jung Un-ho holds a 40% stake.

CEO Jung expressed his ambition to diversify the brand portfolio through the acquisition of the underwear company Ssangbangwool. He believes that strategically utilizing the distribution and production channels of each company can generate high synergy. A Nature Republic official said, "We will expand our global business through new ventures combining fashion and beauty," adding, "With the resolution of the major owner risk issue, Ssangbangwool will accelerate management normalization."

Currently, Ssangbangwool faces delisting risk as its stock trading has been suspended since July 2023 due to embezzlement and breach of trust by former chairman Kim Seong-tae.

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