KOSDAQ-listed CSA Cosmic will join as the largest shareholder of Blue One, the corporation that operates the Jeju Sun Hotel Casino. The intent is to expand its territory into the tourism and leisure business in addition to its existing cosmetics business.
CSA Cosmic said on the 4th that it will carry out investment and lending to Blue One and secure the status of largest shareholder.
CSA Cosmic will invest 1.3 billion won to acquire Blue One convertible bonds (CB) and, separately, provide 2.2 billion won in monetary lending. The plan is to secure the status of largest shareholder through a debt-to-equity swap that will later convert the loan into shares.
Blue One will later spin off the hotel division and the casino division into separate entities. CSA Cosmic will acquire the casino division to secure both risk diversification and financial stability.
After streamlining its financial structure through a recent capital reduction (reverse stock split), CSA Cosmic plans to achieve a practical turnaround in corporate value, using this acquisition as a starting point.
CSA Cosmic will apply the global distribution network and brand marketing capabilities it has accumulated in its existing cosmetics and lifestyle business to the casino and tourism business. In particular, under the direction of newly joined industry-expert management, it plans to introduce a differentiated package that combines "K-beauty content" and "premium VIP tourism services." The strategy goes beyond simple casino operations to provide integrated lifestyle experiences to global customers.
CSA Cosmic said, "During the acquisition process, we succeeded in taking over as many existing employees as possible and successfully completed internal organizational stabilization by improving the compensation system," adding, "We have finished preparations to execute medium- to long-term growth strategies on a stable operating foundation."
It added, "Participation in this casino operating corporation is not a simple external expansion but the securing of a structural growth base that combines beauty and leisure," and "We will make every effort to solidify our status as the major shareholder through efficient fund execution and a debt-to-equity swap, and to enhance shareholder value by maximizing the synergy of our ongoing brand rebranding and new businesses."