Daegu Department Store shares have surged following news of a change in its major shareholder and management rights sale.
As of 9:36 a.m. on July 16, the Korea Exchange reported that Daegu Department Store's stock rose by 320 won (5.78%) to 5,860 won. The stock price initially climbed to 6,720 won, marking a 21.30% increase early in the trading session.
The announcement of the sale of the major shareholder's stake has reportedly boosted investor sentiment. The anticipated changes in management and expectations for business restructuring and enhanced corporate value appear to be reflected in the stock price.
In a pre-opening disclosure, Daegu Department Store announced that its largest shareholder, Chairman Gu Jeong-mo, along with six related parties, has signed a stock purchase agreement (SPA) to transfer 2,795,743 common shares (25.82% stake) to SeGyeong Invest and Aram Korea.
The total sale price is approximately 22.4 billion won, with a per-share sale price of 8,000 won. This reflects a management premium of about 44.4% compared to the previous day's closing price of 5,540 won.
The buyers have paid a deposit of 1 billion won and are expected to make subsequent payments on July 24 and August 14.
Once the final payment is made, the remaining shares will be transferred. The expected transaction completion date is August 25, with a special shareholders' meeting scheduled for August 26 to finalize the change in major shareholders.
* This article has been translated by AI.
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