Won & Partners Secures 85% of GOLFZON HOLDINGS... Chooses ‘Value Enhancement’ Over Delisting [fnMarketWatch]

[Financial News]  Won & Partners has secured more than 85% of GOLFZON HOLDINGS, effectively completing its takeover of management control, but has decided not to push for delisting. Having secured stable control through two tender offers, the move is seen as a decision to focus on the company’s core business competitiveness and corporate value rather than incur additional costs to buy out minority shareholders for the time being.
According to investment banking industry sources on the 4th, SJ Investment Holdings, a special-purpose company established by Won & Partners, ended its second tender offer for GOLFZON HOLDINGS on the 3rd.
Following its first tender offer on June 29, SJ Investment Holdings conducted a second tender offer from August 10 to September 3 at 6,700 won per share. After the two tender offers, its stake based on voting shares, excluding treasury shares held by the target company, rose to 85.2%.
The investment banking industry naturally turned its attention to the “next step.” When private equity investors secure a high stake through a tender offer, they typically consider consolidating the remaining shares through an additional tender offer or a comprehensive share exchange, followed by delisting.
However, Won & Partners has drawn a line for now. The tender offeror said, “We respect the choices of shareholders,” adding, “At present, we are not considering follow-up procedures related to delisting, such as an additional tender offer or a comprehensive share exchange.”
Investment banking sources view the key issue in the decision as the “costs and benefits after reaching 85.2%.” Having already secured a stake sufficient to exercise management control, there is currently little incentive to spend additional funds acquiring the remaining minority stake. The decision means the company can maintain its listing, improve its earnings and business competitiveness, and reassess its capital policy later.
With uncertainty continuing in the golf-related industry, restoring corporate value is likely to take priority over consolidating the stake in the short term. The tender offeror also stated, “We expect unfavorable business conditions to persist for a considerable period,” adding that, as a major shareholder, it would focus on strengthening business competitiveness and helping secure the company’s fundamentals over the medium to long term.
An investment banking industry official explained, “With more than 85%, the company has effectively achieved its objective in terms of control,” adding, “Rather than aggressively acquiring the remaining shares with delisting itself as the goal, increasing corporate value while remaining listed may be more advantageous in terms of capital efficiency.” 
The official continued, “Ultimately, the end of the second tender offer is closer to a turning point in the strategy than the end of the deal,” adding, “GOLFZON HOLDINGS’ earnings improvement, its shareholder-return policies such as dividends and treasury shares, and whether Won & Partners changes its stake further are expected to be factors in gauging its next capital policy.” 


[email protected] Reporter Kim Kyung-ah Reporter