KOSDAQ-listed S&K Polytech sold idle real estate, booking a gain that exceeds its market capitalization.
S&K Polytech said on the 11th it will transfer idle factory land and buildings in Ansan, Gyeonggi Province, for 48 billion won. The buyer is cosmetics maker COSMAX Neo.
The asset's book value is about 17.8 billion won, and the sale will generate a gain of about 30.2 billion won. That tops the company's market capitalization of about 25.5 billion won based on the closing price that day.
According to S&K Polytech, the funds from the sale will be used to repay borrowing fund and serve as resources for mergers and acquisitions (M&A) investments.
S&K Polytech manufactures and supplies high-density polyurethane foam sheets, an impact-absorbing component material used in smartphones, with in-house technology. Subsidiary NPD produces components used in smartphones using surface-mount technology. Another subsidiary, CAP, manufactures and sells automotive wiper blades.