[Market Focus] Kolon Mobility Group Plunges 23% Ahead of Delisting

Kolon Mobility Group is plunging by more than 20% on December 10. This is interpreted as speculative buying subsiding ahead of its scheduled delisting early next year.

As of 9:28 a.m. on this day, Kolon Mobility Group was trading at 8,320 won, down 2,520 won (23.25%) from the previous trading day.

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Kolon Mobility Group plans to halt trading on December 15, conduct a stock swap on December 17, and become a wholly owned subsidiary of Kolon. The delisting is scheduled for January 7 next year. The stock exchange ratio is set at 0.0611643 shares of Kolon for each share of Kolon Mobility Group.

In August, Kolon announced its plan to acquire 100% of Kolon Mobility Group’s shares and make it a wholly owned subsidiary. Through a tender offer from August 8 to September 8, Kolon secured 90.37% of the common shares and 73.51% of the preferred shares of Kolon Mobility Group.

After the decision to delist Kolon Mobility Group, the stock price soared as speculative buying surged. At one point in September, the price climbed to 22,500 won, more than five times the tender offer price of 4,000 won, and even on December 8, it rose by over 6%. However, nearly a 30% plunge the previous day has led analysts to suggest that a game of ‘hot potato’ has begun.

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