The stock price of REVU Corporation surged following news that LG Uplus and Daou Technology were narrowed down as likely candidates for the acquisition of the influencer marketing platform 'REVU.' (☞ “Is LG REVU coming?” LG Uplus is a likely candidate for the acquisition of REVU Corporation)
REVU Corporation shares traded at 14,490 won on the KOSDAQ market at 10:19 a.m. on the 24th. The stock price rose by 1,840 won (14.55%) compared to the previous trading day. During trading, the stock price also reached as high as 10,580 won. The news of the management rights sale appears to have stimulated investor sentiment.
According to the investment banking (IB) industry, Kiwoom Private Equity (Kiwoom PE) and Korea Investment Partners Private Equity Division (HanTuh PE) have recently begun the process of selling management rights for REVU Corporation towards LG Uplus and Daou Technology. The goal is to conclude the transaction within the year, with an estimated selling price of around 100 billion won.
In particular, LG Uplus was identified as a strategic investor (SI) when it acquired 68.26% of the management rights equity of REVU Corporation from BNW Investment, a private equity fund (PEF) management company, in March 2022, and reportedly obtained a preemptive right. The essence of LG Uplus's preemptive right is to ensure that Kiwoom PE and HanTuh PE offer to LG Uplus first when selling all or some of their owned shares.
Currently, Kiwoom PE and HanTuh PE hold 56.91% of the equity of REVU Corporation through a special purpose company (SPC), while LG Uplus holds 8.34%. Daou Technology participates as an SPC investor, holding a subordinate preemptive right.