DAEMYUNG LEISURE INDUSTRY Co., Ltd. and Daemyung Corporation Co.,Ltd. (KOSDAQ:A007720) agreed to acquire Cheonan Resort PFV Co., Ltd. from Lotte Insurance Co., Ltd. (KOSE:A000400) and others on March 21, 2017. DAEMYUNG LEISURE INDUSTRY and Daemyung Corporation were selected as the priority bidder for the transaction. DAEMYUNG LEISURE INDUSTRY Co., Ltd. and Daemyung Corporation Co.,Ltd. signed an acquisitions contract to acquire Cheonan Resort PFV Co., Ltd. from Lotte Insurance Co., Ltd. and others on June 1, 2017. Under the terms of the transaction, DAEMYUNG LEISURE INDUSTRY and Daemyung Corporation will acquire 2.98 million common stock, 1st convertible bond with accrued interest and 2nd convertible bond. Daemyung Corporation will pay KRW 14 billion as 50% of the total acquisition amount. The equity ratio may change in future between DAEMYUNG LEISURE INDUSTRY and Daemyung Corporation.

Cheonan Resort PFV reported total assets of KRW 127.03 billion, sales of KRW 16.98 billion and net loss of KRW 3.37 billion as of December 31, 2016. The deal is subject to approval of related agencies. The acquisition is expected to close by June 23, 2017. The acquisition of 9.4% stake from Lotte Insurance is expected to close after the acquisition of 90.6% stake from other shareholders.