Global private equity fund manager Bain Capital is moving to delist ECHOMARKETING voluntarily. By following a tender offer with an open-market purchase, it satisfied the requirement for voluntary delisting that the largest shareholder and related parties hold at least 95% equity.
On the 7th, according to the Financial Supervisory Service, Bain Capital carried out an open-market purchase at 16,000 won per ECHOMARKETING share, acquiring an additional 766,231 shares (2.5%). About a month after the end of the third tender offer on Mar. 31, the equity stake rose to 95%.
Bain Capital earlier became the largest shareholder by acquiring a 43.6% management-control equity stake in ECHOMARKETING held by CEO Kim Cheol-ung and related parties. It then conducted three tender offers at 16,000 won per share, increasing its stake.
ECHOMARKETING is an online advertising agency and has the activewear fashion brand "Andar" as a subsidiary. Bain Capital was said to have pursued the acquisition of ECHOMARKETING after highly valuing Andar's potential for global expansion.
Bain Capital is expected to apply for ECHOMARKETING's delisting. The plan is to convert it into an unlisted, wholly owned subsidiary of BCP Avidco One, which Bain Capital established, simplify the decision-making structure, and accelerate efforts to enhance corporate value.
The Korea Exchange (KRX) stipulates in its KOSPI market listing rules that for a listed company to pursue a voluntary delisting, the combined equity of the largest shareholder and related parties must be at least 95%. The same standard applies to the KOSDAQ market.
On the 3rd, ECHOMARKETING's board also passed a resolution to pursue a "cash-delivered comprehensive share exchange." With the equity ratio reaching 95% through an open-market purchase, delisting has become possible even without a comprehensive share exchange.
A Bain Capital representative said, "To protect the rights and interests of ECHOMARKETING's minority shareholders, we carried out an open-market purchase at 16,000 won per share, the same as the tender offer price," and added, "With continued support from minority shareholders, we secured a 95% equity stake in a short period."