Golfzon Holdings experienced a surge in stock price following news of a share buyback initiative from its largest shareholder.
As of 1:55 PM on June 29, the Korea Exchange reported that Golfzon Holdings shares rose by 1,275 won (29.96%) to 5,530 won compared to the previous trading day.
The increase in stock price is attributed to the announcement that the largest shareholder plans to conduct a share buyback with the intention of voluntarily delisting the company.
On the same day, Golfzon Holdings disclosed that SJ Investment Holdings, a related party of the largest shareholder, will buy back 15,485,020 common shares at 6,700 won per share until August 5. This buyback price is approximately 57% higher than the closing price of 4,255 won on June 26, with a total value of about 103.7 billion won.
The buyback will target the remaining shares, which represent 36.15% of the total issued shares. Excluded from this buyback are the 43.37% stake held by former CEO Kim Won-il, a 10.65% stake held by related party Kim Young-chan, and 9.83% of treasury shares.
SJ Investment Holdings plans to purchase all shares tendered, regardless of the subscription rate. After the buyback is completed, the shareholding percentage of the buyers will reach 90.17% of the total issued shares (100% of the circulating shares).
Additionally, Golfzon Holdings stated that it aims to enhance operational efficiency and reorganize its structure in light of the overall slowdown in the golf industry and declining performance of the target company. The company plans to transition to a non-listed status to focus on regaining its long-term competitiveness. It also emphasized that the buyback is intended to provide an opportunity for general shareholders to recover their investments amid recent stock price declines and reduced liquidity.
* This article has been translated by AI.
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