REFINE's largest shareholder effectively expressed opposition to Tcha Partners Asset Management, an activist fund, demanding a share buyback and cancellation. The judgment is that the company should use its cash to restore business competitiveness and invest in new businesses rather than return it to shareholders.
Realtyfine, REFINE's largest shareholder, said on the 11th, "Whether to launch a tender offer for treasury shares is ultimately a matter for the target company's board," but added, "Given recent business conditions and the financial structure, spending funds needed for the company's growth on buying back treasury shares runs counter to mid- to long-term strategies such as restoring fundamental competitiveness and expanding the B2C business, and is inappropriate."
Earlier, Tcha Partners, through a public shareholder letter on the 4th, demanded that REFINE's board buy back and cancel treasury shares on a scale similar to the largest shareholder's tender offer. The argument is that, rather than the largest shareholder acquiring additional equity at an undervalued price, the method of the company directly buying and canceling its own shares is more favorable for enhancing overall shareholder value.
Realtyfine's position is that cash and cash equivalents held by the company should be deployed in new businesses rather than used for buybacks. REFINE is said to have signed a memorandum of understanding (MOU) to review mergers and acquisitions (M&A) in B2C proptech worth 70 billion to 80 billion won.
Realtyfine stressed, "As the target company is pursuing new businesses through M&A, including signing an MOU to review a B2C proptech M&A worth 70 billion to 80 billion won, cash and cash equivalents should be used to advance these new businesses."
REFINE currently generates more than 90% of its total revenue from fees on jeonse and wolse deposit loan services. As the rental market is rapidly shifting to monthly rents and requirements for jeonse guarantees and loans are tightened, the largest shareholder judges that the company must reduce its dependence on the existing business and secure new growth engines.
Realtyfine plans to continue investing in expanding existing business areas, entering new businesses and diversifying operations, and advancing AI-based screening systems. Through this, the plan is to focus on improving REFINE's business fundamentals themselves rather than on short-term shareholder returns.
Realtyfine said, "Without fixating on short-term results, we plan to carry out years of continuous investment in core areas such as expanding existing business areas, entering new businesses and diversifying operations, and advancing AI-based screening systems," adding, "We will pursue as a mid- to long-term core task the fundamental improvement of the target company's business fundamentals."
Realtyfine is an SPC established by Stonebridge Capital and LS Securities and currently holds about 48% of REFINE's equity. From on the 18th of last month to on the 16th, it is additionally conducting a tender offer for 5,199,000 shares, or 30% of REFINE's total issued shares. If the tender offer is fully completed, the equity stake will rise to about 78%.
This tender offer is not premised on delisting. Realtyfine's position is that it is offering existing shareholders the option to either participate in the tender offer to receive a premium and recoup their investment or remain as shareholders of a listed company and take part in future growth.
Realtyfine said, "Amid an uncertain business environment, we created a voluntary structure that allows every shareholder to decide whether to recoup their investment based on their own judgment," adding, "The core purpose of this tender offer is to block conflicts of interest among specific shareholders and protect shareholder value."