ISU PETASYS, a semiconductor printed circuit board (PCB) corporation, announced on 2nd that the termination of its acquisition agreement with JEIO, a secondary battery materials corporation, was justified and that it would take legal action.
An ISU PETASYS representative noted, "Due to the nature of JEIO, which is a technology-specialty listing corporation, there were contractual fulfillment conditions necessary to properly complete the acquisition, and this condition was not met. They are aware that if the contract is canceled due to the seller's fault, the deposit must be returned, yet they unilaterally filed a lawsuit for the forfeiture of the deposit, which seems to be for the purpose of building justification."
ISU PETASYS disclosed that it received a lawsuit from JEIO the previous day. The claimed amount for the lawsuit totals 16 billion won, comprising approximately 15.8 billion won for the forfeiture of the deposit and 200 million won for damages.
Earlier, ISU PETASYS announced a paid-in capital increase for acquisition funds and facility investments while pursuing the acquisition of JEIO. There was strong opposition from minority shareholders, and the Financial Supervisory Service intervened. ISU PETASYS withdrew its merger and acquisition (M&A) in January and reduced the scale of the paid-in capital increase by about half.
JEIO, citing uncertainty over the paid-in capital increase, asserts that it has no obligation to return the deposit of 15.8 billion won given by ISU PETASYS since the contract has been broken. Conversely, ISU PETASYS claims that JEIO failed to fulfill its main contractual obligations and insists on retrieving the deposit.