This article was published on May 22, 2025, at 3:53 p.m. on the ChosunBiz MoneyMove site.
Korea Investment Private Equity (HanTu PE) is pushing for an investment of 100 billion won in Contentree JoongAng, a company engaged in content production and film business. Following a 30 billion won investment last month, there is growing interest in the background for this rapid additional investment.
According to the investment banking (IB) industry on the 22nd, HanTu PE is reportedly coordinating investment terms with Contentree JoongAng. HanTu PE plans to use a 500 billion won blind fund called 'Korea Investment 2024' for this investment.
HanTu PE also purchased a 30 billion won convertible bond (CB) issued by Contentree JoongAng last month. It appears that the funds raised this time, along with the previous funding, will be used to improve financial conditions, such as debt repayment. As the negotiations are still in the early stages, the details of how the funds will be injected have not been determined.
However, they plan to secure funds in a different manner than the CB issued last month, because Contentree JoongAng no longer has the capacity to issue additional CBs. If the previously issued 30 billion won CB conversion rights are fully exercised, HanTu PE will already secure a 15.8% equity stake in Contentree JoongAng.
The nominal interest rate and maturity interest rate of the CB are 4%, and the conversion price is 8,283 won. The conversion request period is from April 11, 2026, to March 11, 2055. There will be no adjustment to the conversion price due to a decline in market value.
HanTu PE is said to have initiated additional investments, anticipating that Contentree JoongAng's performance will recover this year. Last year, Contentree JoongAng's revenue was 879.5 billion won, a decrease of 11.4% from the previous year (993 billion won). During the same period, operating loss decreased by 30.3% (from 47.4 billion won to 68 billion won), and net loss decreased by 45.1% (from 167.3 billion won to 91.9 billion won). However, in the first quarter of this year, operating loss and net loss were 12.1 billion won and 37.4 billion won, respectively.
On that day, the closing price of Contentree JoongAng was 9,890 won per share. Earlier in February, as expectations of lifting the ban on Korean content spread, the company's stock price, which was around 8,000 won, rose above 10,000 won. If the lifting of the ban on Korean content materializes in May, there remains the potential for stock price increases.
Contentree JoongAng is an intermediate holding company of JoongAng Group, with subsidiaries such as Megabox JoongAng, SLL JoongAng, and Film Monster. It engages in comprehensive content businesses ranging from drama and film production to operating cinemas (Megabox) and running kids' cafes. Representative works include "The Outlaws 4" and "The Youngest Son of a Conglomerate."