The public tender offer for DOUZONE BIZON CO. being pursued by global private equity fund (PEF) manager EQT Partners appears to be proceeding smoothly. As a significant portion of the shares subject to the tender offer have changed hands since the offer began, the possibility of delisting is gaining traction.
According to the investment bank (IB) industry on the 13th, about 12.25 million shares in transactions had occurred through the previous day in connection with EQT's tender offer for DOUZONE BIZON CO., which has been underway since on the 23rd of last month. This amounts to about 67% of the number of shares subject to the tender offer.
EQT, which acquired the largest shareholder's equity in DOUZONE BIZON CO. in Nov. last year, is conducting a tender offer for the remaining equity from on the 23rd of last month to the 24th. The tender offer price was set at 120,000 won per share, the same as the sale price paid to the largest shareholder. This reflects a premium of about 25% compared with the closing price immediately before the offer. The tender offer totals about 2.2 trillion won.
EQT said it offered the same price as the control transaction in light of the increased need to protect minority shareholders during delisting procedures following the recent amendment to the Commercial Act.
EQT said, "We offered minority shareholders the same price as the control transaction, providing an opportunity to receive the same premium as the largest shareholder," and added, "We will complete the transaction in a manner consistent with the Ministry of Justice guidelines so that the interests of minority shareholders can be protected."
Earlier, in Feb., the Ministry of Justice presented procedures to protect minority shareholders and the role of the board of directors in the process of a listed company pursuing delisting through the "guidelines on directors' standards of conduct in corporate reorganizations."