Block Deal Sale of About 98 Billion Won Worth of Acushnet Holdings by Fila Holdings

• Fila Holdings announced that its subsidiary Magnus Holdings plans to sell a 1.8% stake in Acushnet Holdings in a block deal sale worth about 98 billion won.

• Our NAV valuation of Fila Holdings suggests an implied value per share of 49,192 won, representing 18.2% upside from current levels. Fila Holdings' 51.9% stake in Acushnet Holdings.

• The block deal sale of Acushnet Holdings by Magnus Holdings is likely to have a positive impact on Fila Holdings as it could result in higher capital returns to shareholders.

On 9 August, Fila Holdings (081660 KS) announced that its subsidiary Magnus Holdings plans to sell a 1.8% stake (1.11 million shares) in Acushnet Holdings (GOLF US) in a block deal sale worth about 98 billion won. The block deal sale was set at a 6% discount to the closing price on 8 August (US$68.29).

Fila Holdings plans to use the proceeds from the block deal sale for long-term investments. After the block deal sale, Magnus Holdings will own a 50.08% stake in Acushnet Holdings. Magnus Holdings is an intermediate holding company of Fila Holdings, of which Fila Holdings owns a 100% stake.

Overall, we believe the block deal sale of Acushnet Holdings by Magnus Holdings is likely to have a positive impact on Fila Holdings as it will result on higher cash amount for further investments and potentially higher capital returns to shareholders through dividends and share buybacks.

As of 10:54AM NYC time, Acushnet Holdings is trading at US$68.6 per share, down only 0.4% from the previous day. It traded as low as US$67.41 on 9:50AM NYC time.

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