Samick Musical Instruments Co., Ltd. completed the acquisition of 70% stake in Suwan Energy CO.,LTD. from Keangnam Enterprises Co., Ltd.
February 31, 2017
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Samick Musical Instruments Co., Ltd. (KOSE:A002450) signed a memorandum of understanding to acquire 70% stake in Suwan Energy CO.,LTD. from Keangnam Enterprises Co., Ltd. for KRW 28 billion on January 13, 2017. Samick Musical Instruments Co., Ltd. (KOSE:A002450) signed agreement to acquire 70% stake in Suwan Energy CO.,LTD. from Keangnam Enterprises Co., Ltd. for KRW 28 billion on January 24, 2017. Under the terms of the transaction, Samick Musical Instruments Co., Ltd. will acquire 4.2 million shares of Suwan Energy CO.,LTD in cash for KRW 2.4 billion and loan of Suwan Energy CO.,LTD. of KRW 68.5 billion for KRW 25.6 billion. Out of the consideration, 10% is payable on signing of memorandum of understanding and the balance on closing. The deal will be financed from retained funds. Post transaction Samick Musical Instruments Co., Ltd. will hold 70% stake in Suwan Energy CO.,LTD. The Board of Directors of Samick Musical Instruments Co., Ltd. resolved the deal on January 24, 2017. Seonjin Accounting Corporation acted as external rating institution name.
Samick Musical Instruments Co., Ltd. (KOSE:A002450) completed the acquisition of 70% stake in Suwan Energy CO.,LTD. from Keangnam Enterprises Co., Ltd. on February 1, 2017.
Samick Musical Instruments Co Ltd is a Korea-based company mainly engaged in the manufacture and sale of musical instruments. The Company operates its business through three segments. The Musical Instrument segment is mainly engaged in the manufacture and sale of musical instruments such as pianos, guitars and electronic instruments business. The Collective Energy segment is mainly engaged in the provision of electricity and heat to meet demand for cooling and heating. The Other Sales segment is mainly engaged in the rental of musical instruments and investment properties business.