It has been confirmed that KH Group is acquiring cosmetics company CSA COSMIC. CSA had earlier struggled to sell management control as disputes arose among acquirers.
According to the capital markets industry on the 23rd, KH Group acquired management control of CSA. A filing the previous day said KH Group will take part in a third-party allotment paid-in capital increase to secure about 11 million shares of CSA COSMIC.
The planned issue price for the new shares in this paid-in capital increase is 726 won, a 10% discount to the reference price, for a total of 8 billion won. The equity stake after the capital increase will be about 15%. Adding friendly holdings, including Vpink Holdings, will lift the stake to more than 20%. The payment for the capital increase is scheduled for Nov. 25, and the newly issued shares will be listed on Dec. 12.
The third-party allotment paid-in capital increase was to be conducted for Vpink Holdings, but after one correction, a fund named G&B Investment Association, financed 99.5% by KH Group affiliate iHQ Inc., will participate.
CSA, a KOSDAQ-listed company headed by celebrity makeup artist Cho Seong-a, signed a contract in June to transfer equity to strategic investor (SI) The Kims Pharm and to financial investors (FI) including PANTOS Holdings and Pureo Robotics Association. However, as The Kims Pharm ran into funding problems, conflict arose with Vpink Holdings, which had joined as a white knight. As the stock price plunged recently, shares held by the original acquirer side were even force-sold on margin.
KH Group has appointed a management supervisor to CSA COSMIC and is receiving handover of management matters. It also plans to hold a shareholders meeting on the 6th of next month to address agenda items related to appointing new directors and amending the articles of incorporation.
KH Group expects this acquisition of CSA COSMIC to generate synergies with its existing real estate business and sales network in Southeast Asia.
A KH Group official said, "We plan to make good use of KH Group's global sales network and distribution capabilities to expand operations in China and Southeast Asia," adding, "We will do our best to drive sales growth at CSA COSMIC."