On the 11th, Ray(228670) is surging 29%. Investor sentiment appears to be buoyed by news that Graphy will acquire 26% equity in Ray.
As of 9:02 a.m. that day, Ray was trading on the KOSDAQ market at 7,420 won, up 29.94% from the previous session. However, it is trimming gains during intraday trading.
After the market closed the previous day, Ray disclosed that largest shareholder Chief Executive Lee Sang-cheol and related party Ray Holdings decided to transfer 4,087,749 Ray shares (26.14% equity stake) to Graphy for 49.2 billion won.
The acquisition price equals 123.8% of Graphy's consolidated total assets of 39.7 billion won at the end of last year. It is 233.5% relative to shareholders' equity (21.1 billion won).
By contrast, Ray logged sales of 111.3 billion won last year. As of the first quarter this year, total assets were 176.3 billion won and total equity was 78.5 billion won, meaning it will acquire control of a listed company larger than itself in sales and assets.
Once the transaction is completed, Graphy will become the largest shareholder with 26.14% equity in Ray. Ray Holdings' equity will fall from 18.52% to 0%, and Lee's equity will decrease from 8.62% to 1%. The scheduled date for the change of largest shareholder is Sept. 16.