Daegu Department Store, listed on the securities market, announced on the 11th that it will conduct a block deal of its own shares worth 1.7 billion won.
On this day, after the regular trading session, Daegu Department Store disclosed that it plans to block deal 200,000 of its own shares with Dunamis Asset Management before the opening on the 14th. The purpose of the disposal is to enhance liquidity.
This share disposal is interpreted as a response to Daegu Department Store's stock price soaring 17.8% over the past seven trading days (April 3-11). The disposal price per share is set at 8,408 won, which is a 5% discount from the closing price (8,850 won) on the 11th, totaling 1.68 billion won.
Daegu Department Store previously disposed of 200,000 of its own shares for approximately 1.56 billion won on the 19th of last month to secure liquidity. The disposal target was also Dunamis Asset Management, a multi-strategy hedge fund management company established in 2018.
A representative of Daegu Department Store noted, "The planned shares for disposal account for 1.85% of the total number of common shares issued and are expected to have a negligible dilutive effect on stock value as they will be executed in off-hours trading."
Meanwhile, Daegu Department Store is in the process of selecting a sales manager to sell its tangible assets, including its main store and Daebak Outlet, and is currently proceeding with the sale.
The main store of Daegu Department Store was closed in July 2021 due to management difficulties. Although a sale contract for the main store was seemingly reached the following year, it fell through due to unpaid intermediate and balance payments. Daegu Department Store also issued a public sale notice last year, but the contract was not concluded.