KOSPI-listed Shinsegae Food shares were strong early on the 15th. Buying is seen as piling in on news that Emart will acquire all of Shinsegae Food's circulating equity through a tender offer and fold it in as a wholly owned subsidiary.
As of 9:20 a.m., Shinsegae Food was trading at 47,800 won, up 7,700 won (19.20%) from the previous session. It climbed to as high as 47,900 won intraday, hitting a 1-year high.
Before the regular session opened, Shinsegae Food disclosed that Emart, which holds 55.47% equity in Shinsegae Food, will conduct a tender offer. Emart plans to delist Shinsegae Food after the tender offer from today through Jan. 5 next year via procedures and methods permitted by relevant laws.
The tender offer price is 48,120 won per share, 20% higher than the closing price (40,100 won) on the 12th, the session immediately before the disclosure.
Emart said it is conducting the tender offer to resolve structural undervaluation that has prevented Shinsegae Food's corporate value from being fully reflected. An Emart representative said, "While giving minority shareholders a chance to recoup their investments at a premium over the market price, we will substantively enhance shareholder value."