The Aekyung Group's announcement to put Aekyung Industrial up for sale has caused the company's stock price to soar.
As of 9:48 a.m. on the 2nd, Aekyung Industrial is trading at 17,180 won, an increase of 18.48% from the previous day.
A media outlet reported the previous day that the Aekyung Group is selling its core subsidiary, Aekyung Industrial.
Aekyung Industrial handles household goods and cosmetics for the group and is considered the foundation of the business. AK Holdings, the holding company of the Aekyung Group, and Aekyung Asset Management own about 63% of Aekyung Industrial's equity.
This reorganization is interpreted as a measure to overcome the group's liquidity crisis. As of the end of last year, AK Holdings' total liabilities stand at 4 trillion won. The debt ratio exceeds 300%.
In the market, the value of the equity in Aekyung Industrial held by AK Holdings is estimated to be around 220 billion won, considering the market capitalization, but estimated to be 600 billion won when including the management premium.
The Aekyung Group is also considering the sale of the Jungbu CC golf course located in Gonjiam, Gyeonggi Province. Aekyung Chemical holds a 100% equity stake in this golf course.