Daegu Department Store(006370) is plunging 25% on the 23rd on news that the change of the largest shareholder fell through.
As of 9:27 a.m. on the 23rd, Daegu Department Store is trading on the KOSDAQ market at 3,270 won, down 1,140 won (25.85%) from the previous session.
Daegu Department Store said after the market closed the previous day that a stock purchase agreement signed by Chair Gu Jeong-mo and six others, the largest shareholders, was terminated because the counterparty failed to pay the second interim payment.
Earlier, on the 15th of last month, Gu signed a contract to sell 2.79 million common shares of Daegu Department Store (25.82% equity stake) to Saekyung Invest and Aram Korea for 22 billion won. The sale price is 8,000 won per share.
Subsequently, on the 21st, the buyer was changed to Lee & Go Partners and a third party designated by Lee & Go Partners, and an amended contract was signed to adjust the payment schedule.
However, the contract was terminated because the buyer did not pay 7 billion won of the second interim payment by the previous day.