KOSDAQ-listed CS disclosed on the 2nd that it signed a 11 billion won loan agreement guaranteed by Korea Technology Finance Corporation (KOTEC) and executed by Woori Bank. The funds will be used to acquire equity in Mirae Information Technology.
CS announced in May that it would acquire 100% equity in Mirae Information Technology for 25 billion won. It will acquire 100% equity for 20 billion won, with an additional 5 billion won to be paid based on operating profit each year for three years starting in 2027.
A CS official said, "With this acquisition financing, we have secured all the funds to acquire 100% equity in Mirae Information Technology, enabling us to complete the acquisition transaction scheduled for Aug. 6." CS also noted, "It is a structure of long-term borrowing at a low interest rate."
Mirae Information Technology, which CS is seeking to acquire, develops, manufactures and distributes video surveillance devices. Last year it recorded 34.1 billion won in revenue and 2.3 billion won in operating profit. A CS official said, "We will pursue growth with the existing telecommunications business and Mirae Information Technology's video surveillance device business as the two main pillars."
To secure future growth engines, CS has been reviewing acquisitions of several corporations for years.