Realty Fine will launch a tender offer to increase its equity in KOSDAQ-listed REFINE. Realty Fine is a special-purpose company (SPC) established by Stonebridge Capital and LS Securities. Realty Fine said it plans to keep REFINE's listing status even after the tender offer.
According to the financial investment industry on the 18th, Realty Fine will conduct a tender offer for up to 5,199,000 common shares of REFINE (30% equity) from today through on the 16th of next month. The tender offer price is 17,600 won per share.
This is a price 29.6% higher than REFINE's closing price (13,580 won) on the 14th, the business day before the tender offer. Compared with the volume-weighted arithmetic average price over the past one month (11,722 won), a 50.1% premium was added. The tender offer price is among the highest levels of REFINE's share price this year.
Realty Fine currently holds 8,311,487 shares (47.96%) out of 17,330,000 issued shares of REFINE. If it secures the entire tendered amount, its equity holding will increase to 77.96%.
In the tender offer filing, Realty Fine said, "Uncontrollable variables such as structural changes in the lease market and unfavorable jeonse loan regulations are acting as performance uncertainties for REFINE and downward pressure on its share price, making it necessary to establish a consistent management strategy to enhance business stability," adding, "Through this tender offer, we will provide an opportunity for shareholders who wish to recover their investment in the short term to realize 'revenue,' and in the long term, we will focus on sound management based on a stable controlling equity."
This tender offer is not for the purpose of delisting. Realty Fine said in the tender offer filing that it plans to maintain REFINE's listing status after the tender offer.
Realty Fine will purchase all tendered shares even if the number of tenders falls short of the maximum planned purchase amount (5,199,000 shares), and if it exceeds, it plans to buy on a pro rata basis.
The approximately 93.264 billion won needed for the tender offer will be funded entirely through a borrowing fund from NH Investment & Securities. NH Investment & Securities will also serve as the tender offer manager and agent.
REFINE is a real estate rights due diligence company established in 202. It began as an in-house venture at Korea Appraisal Board and started rights due diligence services related to jeonse loans in 2007, and it listed on the KOSDAQ market in 2001.