This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:28 p.m. on Feb. 19, 2026.
Asia Seed, a KOSDAQ-listed company, has failed to make meaningful progress more than a year after putting its management control up for sale. As the deal shows no sign of closing, the sellers slightly lowered the price, but the market expects no meaningful change.
People familiar with the matter said the company's rarity as a listed seed firm and its recent rebound in earnings are positives, but the asking price is too high and its status as an agricultural corporation is a drag.
According to investment banking (IB) and capital market industry sources on the 19th, Chairman Ryu Kyung-oh, the largest shareholder of Asia Seed, and persons with a special relationship are pushing to sell all of their holdings. Their equity stake is 28.54% (about 3.4 million shares), with Chairman Ryu holding 19.3%, and related parties Ryu Jae-hwan and Ryu Jae-young holding 7.62% and 0.96%, respectively. In addition, Yoo Soon-hee and Seo Won-uk each hold 0.35%. The asking price for their entire equity is known to be about 20 billion won.
Asia Seed was considered an attractive asset when it came to the mergers and acquisitions (M&A) market early last year. Only two seed companies are listed on the domestic stock market, and one of them is Asia Seed. The company holds 1,439 varieties of vegetable seeds and 243 other seed varieties, the most among domestic seed companies.
Because it is difficult for newcomers to enter the seed market, its solid business position is cited as a strength. In fact, even in the first half of last year, several investors expressed interest in acquiring the company.
Earnings have also improved recently. In the last fiscal year, Asia Seed posted 25.8 billion won in sales and 1 billion won in operating profit. It had logged losses for two consecutive years but returned to the black. Expanded overseas sales and increased foreign exchange gains appear to have driven the improvement.
Even so, the first reason the deal has not closed is price. The price sought by Chairman Ryu's side is around 20 billion won, which, considering the number of shares for sale, comes to about 6,000 won per share. Given that Asia Seed's current stock price is in the 2,200-won range, they are effectively trying to keep the entire premium.
Recently, the market has turned negative on assigning excessive premiums solely to the largest shareholder's management control, influenced by proposed amendments to the Commercial Act that include fiduciary duties to shareholders. Related issues flared at Lotte Rental and Global Tax Free, and some deals did not close.
According to industry sources, the largest shareholder of Asia Seed recently lowered the sale price slightly. The price was adjusted from around 20 billion won down by 1 billion won to 19 billion won, but a buyer still has not emerged.
Asia Seed's status as an agricultural corporation is also a burden for potential buyers. Agricultural corporations receive tax benefits but are, in principle, prohibited from non-agricultural businesses, limiting expansion potential.
An industry official said, "Additional equity can be secured at a low price through a rights offering and convertible bonds (CB), but in that case it could become controversial as with Lotte Rental," adding, "The fact that a buyer cannot freely bolt on other businesses is also a disadvantage for Asia Seed."