Daegu Department Store shares are experiencing a surge amid expectations for the development of its headquarters following the acquisition of a new largest shareholder.
As of 2:05 PM on July 27, Daegu Department Store's stock was trading at 5,420 won, up 330 won (6.48%) from the previous trading day, according to the Korea Exchange.
The increase in investor sentiment is attributed to the announcement of development plans for the headquarters located on Dongseong-ro in Daegu by the investment firm acquiring the management rights of Daegu Department Store.
SeKyung Invest, a special purpose company (SPC) formed by Daegu Department Store shareholders, announced in a press release that it has completed the payment of the contract deposit and the first installment for the change of the largest shareholder, and it plans to advance the headquarters development as the new largest shareholder.
Earlier, on July 16, Daegu Department Store disclosed that it had signed a stock purchase agreement (SPA) to transfer approximately 2.79 million shares held by seven largest shareholders for 22.3 billion won to SeKyung Invest and others.
SeKyung Invest plans to pursue joint development of the headquarters site with the city of Daegu and the Jung-gu Office, while also considering various development options, including mixed-use complexes, senior residences, and officetels. Additionally, it has proposed transitioning the existing offline-focused retail business to an online-centered model and redesigning the headquarters as a multi-cultural space.
Opened in 1969, Daegu Department Store has operated as the only local department store in the region but ceased operations at its headquarters in 2021 due to the impact of the COVID-19 pandemic. Since then, it has been working to sell its assets, including the headquarters site and logistics center.
* This article has been translated by AI.
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