Hwaseung Enterprise Co., Ltd. completed the acquisition of Jangchun Shoe Manufacturing Dalian Co., Ltd. from Hwaseung Industries Co., Ltd..
October 16, 2017
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Hwaseung Enterprise Co., Ltd. (KOSE:A241590) agreed to acquire Jangchun Shoe Manufacturing Dalian Co., Ltd. from Hwaseung Industries Co., Ltd. (KOSE:A006060) for KRW 28.1 billion on August 21, 2017. Under the terms of the transaction, Hwaseung Enterprise will issue approximately 1.71 million new shares at KRW 15,900 per share as consideration. Jangchun Shoe Manufacturing Dalian reported total assets of KRW 59.7 billion, total capital of KRW 12.3 billion, sales of KRW 144.8 billion, and net profit of KRW 7.5 billion for the year ended December 31, 2016. Board of Directors of Hwaseung Enterprise Co., Ltd and Hwaseung Industries resolved the transaction on August 21, 2017. The transaction is scheduled to close on November 20, 2017. As per an amendment on October 16, 2017, the deal is expected to close on October 17, 2017. Deloitte Anjin LLC acted as external rating institution.
Hwaseung Enterprise Co., Ltd. (KOSE:A241590) completed the acquisition of Jangchun Shoe Manufacturing Dalian Co., Ltd. from Hwaseung Industries Co., Ltd. (KOSE:A006060) on October 17, 2017. After the issuance of the consideration shares, Hwaseung Industries Co., Ltd. has increased its shareholding in Hwaseung Enterprise Co., Ltd. from 70.89% to 74.1%.
Hwaseung Enterprise Co Ltd is a Korea-based company mainly engaged in the manufacture of sports shoes. The Company operates its business through two segments. The Footwear segment mainly manufactures and sells sports shoes during accepting the orders for sports brands including Addidas and Reebok. And this segment sells hat-related products. The Distribution segment is engaged in the distribution business of selling natural rubbers, synthetic rubbers, recycled rubbers, and ethylene vinyl acetate copolymers (EVAs).