Koentec: Tender Offer and Delisting

• On 7 November, it was reported that E&I Holdings (company's largest shareholder) plans to conduct a tender offer of 18,937,913 common shares of Koentec, representing 37.88% of its outstanding shares.

• E&I Holdings plans to purchase all the shares of Koentec and delist the company.

• There have been three small cap tender offers in Korea in the past week which suggests more smaller Korean companies trying to unlock higher value through the tender offer strategy.

Koentec: Tender Offer and Delisting

On 7 November, it was reported that E&I Holdings (company's largest shareholder) plans to conduct a tender offer of 18,937,913 common shares of Koentec Co Ltd (029960 KS), representing 37.88% of its outstanding shares. E&I Holdings plans to purchase all the shares of Koentec and delist the company. E&I Holdings is a joint venture established by Is Dongseo (010780 KS) and E&F Private Equity Fund to jointly acquire Koentech in 2020.

Tender offer price is 9,000 won. Its share price surged by 15.7% on 8 November to reach 8,930 won. A total of 4.8 million shares traded on 8 November which was 16x higher than the previous day's trading volume. The total purchase amount is about 170.4 billion won. The tender offer period is from 8 to 27 November. KB Securities is the lead banker in this deal.