NHN pushed to sell its music platform subsidiary NHN Bugs, but NHN Bugs shares were weak early on the 30th on news that the transaction ultimately fell through due to the acquirer's failure to pay the remaining balance.
As of 9:14 a.m. that day, NHN Bugs was trading at 3,925 won, down 480 won (10.90%) from the previous trading day.
NHN Bugs disclosed that after the close of regular trading on the 27th, the previous trading day, it terminated the stock purchase agreement because the transferees (NDT Engineering and three others) failed to fulfill their obligation to pay the remaining balance to the transferor (NHN).
On Jan. 15 this year, NHN signed a contract to transfer 45.26% equity in NHN Bugs (6,711,020 shares) for 34.7 billion won to NDT Engineering, a comprehensive manufacturer of automated nondestructive testing equipment, and three others. At the time, NHN explained the background of the sale by saying it considered improving management efficiency through selection and concentration in the content business.
However, the acquirer, NDT Engineering, did not pay the remaining balance of 31.23 billion won by the payment deadline on the 9th. NHN extended the payment deadline once to the 26th and urged the closing of the transaction, but ultimately moved to terminate the contract after the balance was not paid.