STAR SM REIT has decided to push for public sales for the sale of equity by the largest shareholder and a third-party allocation of paid-in capital to normalize management.
According to the electronic disclosure system of the Financial Supervisory Service on the 7th, STAR SM REIT has signed a sales brokerage contract with Samjong KPMG. This sale will proceed through a public bidding process by announcement.
A STAR SM REIT official noted, "Through the sale via public bidding, we will replace the major shareholder and management through a fair and transparent process, and we will normalize management with a financially strong major shareholder and a professional management team, rewarding shareholders for their patience through a rapid resumption of trading."
STAR SM REIT was suspended from trading due to an embezzlement case and has currently submitted a request for listing cancellation to the Korea Exchange to obtain a grace period for improvement. This push for public sales also appears to be a procedure aimed at management normalization through the replacement of the major shareholder and management.
STAR SM REIT was listed on the securities market in 2016, and the largest shareholder, "AL136," holds an equity stake of 11.17%. Last year, its name was changed from Modetour REIT to STAR SM REIT, and it operates MD Hotels located in Dongtan and Doksan-dong as its main business.