Another Block Deal Sale of Ecopro Materials

• Shares of EcoPro Materials are down 16% today to 112,300 won, due to another block deal sale of by BRV Capital in the after hours trading on 13 June.

• After the second block deal sale on 14 June, BRV's stake declined further from 21.2% to 18.2%.

• This block deal sale at a big discount is likely to raise overhang concerns about further block deal sales by BRV Capital in the coming months/years.

Photo by Jeong Sujin on Unsplash

Shares of EcoPro Materials (450080 KS) are down 16% today to 112,300 won, due to the announcement of another block deal sale of Ecopro Materials by BRV Capital (second largest shareholder) of 2.1 million shares (3.04% of outstanding shares) through a block deal sales in the after hours trading on 13 June. The block deal sales price was 119,480 won.

Less than a month ago on 20 May, BRV Capital sold 204.1 billion won (US$150 million) worth of EcoPro Materials (450080 KS) in a block deal sale at a price of 93,000 won. After the first block deal sale on 20 May, BRV's stake in Ecopro Materials declined from 24.7% to 21.2%. After the second block deal sale on 14 June, BRV's stake declined further to 18.2%.

This block deal sale at a big discount is likely to raise overhang concerns about further block deal sales by BRV Capital in the coming months/years. There has been a recent rally in shares of Ecopro Materials and BRV Capital took this opportunity to sell additional shares. BRV Capital is likely to try to continue to sell its remaining shares in Ecopro Materials in the next several months/years.