Shares of K Car, the country's largest directly managed used-car platform corporation and a KOSPI-listed company, were weak early on the 1st. After news that KG Group would acquire it, investor sentiment instead appeared to worsen.
As of 10:12 a.m. that day, K Car was trading at 12,050 won, down 1,690 won (12.30%) from the previous session. It fell to as low as 11,630 won intraday, marking a 1-year low.
K Car disclosed that before the regular session opened that day, its largest shareholder, Hahn & Company Auto Holdings, signed a stock purchase agreement on the 31st to sell all of its shares (35,245,670 shares·72.19%).
It is 15,606 won per share, for a total of 550 billion won. The buyer is KG Dongbu Steel, and the deal is scheduled to be completed on Jun. 30.
KG Group said this acquisition will serve as a catalyst for building an integrated mobility ecosystem spanning automobile manufacturing, distribution, and information technology (IT) platforms.
A KG Group official said, "The automobile industry is rapidly shifting beyond traditional manufacturing to distribution and platform-centered models," and added, "Through an integrated mobility structure, we will provide differentiated value to customers and build a foundation for sustainable growth."