The management rights of WOOSU AMS, a KOSDAQ-listed company that was a subsidiary of the Hyundai family ranged HN Inc, have been transferred to Futronic, a mid-sized auto parts company based in Busan. After HN Inc, which was suffering from financial difficulties, filed for corporate rehabilitation (court protection), it experienced fluctuations through its acquisition by Samara Mythos (SM) Group, leading to a change in the largest shareholder.
The new largest shareholder, who will lead the company, is an auto parts company expanding into the electric vehicle market. Given its relatively solid financial capacity and consistent growth, expectations are rising for synergies between WOOSU AMS and the acquiring company. The stock price of WOOSU AMS had already risen significantly before the change in the largest shareholder.
WOOSU AMS recently announced that the largest shareholder has changed from existing Dada Harmony No. 1 to Futronic. It is not the case that Futronic became the new owner by purchasing the existing largest shareholder's equity. The previous largest shareholder, Dada Harmony No. 1, held 11.52% of the company's equity, and Futronic had been gradually accumulating shares until it owned 18.27%, more than Dada Harmony No. 1, and changed its purpose from mere investment to participation in management.
Starting in August of last year, Futronic began accumulating equity in WOOSU AMS. By consistently purchasing shares in the market, it raised its stake to 10% over nearly a year. Until last month, it had stated that its purpose for holding shares was simple investment.
Then, on the 4th of this month, it acquired an additional 9% stake through a block deal. This included a large acquisition of equity held by WOOSU AMS's subsidiary, WOOSU Precision Machinery. WOOSU AMS plans to convene a shareholders' meeting as early as next month to approve the change in management rights.
In fact, the change in management rights at WOOSU AMS was somewhat anticipated. This was due to the situation in which the existing largest shareholder, HN Inc, applied for court protection, making it difficult to operate the company normally.
Jeong Dae-sun, the grandson of the late founder of Hyundai Group, Chung Ju-young, and the third generation of the Hyundai family, is also known as the husband of announcer Noh Hyun-jung. He took over WOOSU AMS five years ago, in 2020. The company was initially led by its founder, Jeon Jong-in, who sold the company to a venture capital firm, Dada Investment, in 2019. Afterward, CEO Jeong Dae-sun's HN Inc indirectly controlled the company by investing in the special purpose corporation (SPC) Dada Harmony No. 1, which was the largest shareholder of WOOSU AMS. This was done through a method in which HN Inc's electric and telecommunications subsidiary, HENY Innovations, was the largest investor.
However, the situation changed when the court approved the rehabilitation plan of HN Inc, with Jeong Dae-sun as the largest shareholder, last year. HENY Innovations, which was the de facto largest shareholder of WOOSU AMS, lost its influence as it transferred its holdings related to WOOSU AMS, and thus the company has been looking for a new owner.
An industry insider who is familiar with the company's circumstances noted, "The transfer of management rights of the company was inevitable due to the situation faced by the existing largest shareholder" and added, "I understand that the new largest shareholder took over management rights in a friendly and stable manner based on a consensus with the existing largest shareholder."
The new largest shareholder, Futronic, is an auto parts company founded in 1993 by Chairman Ko Jin-ho, an engineer. It manufactures automotive components such as electronic control units and actuators, serving global automobile manufacturers including the Hyundai Motor Group, General Motors, Ford, Stellantis in Europe, and Volkswagen.
Last year, its revenue exceeded 180 billion won, with an annual net profit of around 40 billion won. As of the end of last year, its cash and cash equivalents exceeded 57 billion won, and it utilized internal funds rather than external borrowing to acquire equity in WOOSU AMS.
Futronic, a non-listed company, has 100% of its shares owned by Autronic and its related parties, with Autronic holding 100% of its shares together with a related person of Futronic.
Jeong Dae-sun, the third son of the late Jeong Mong-woo, former chairman of Hyundai Aluminum, began his career at Hyundai BNG Steel, a Hyundai Steel affiliate. While working there as a director, he acquired UCT, an information technology company in Busan, to start a business. Jeong tried to expand the business by changing UCT's name to Hyundai BNG & C, but faced disputes with Hyundai Group, including Hyundai Motor Group, in the process. Eventually, he changed the company's name to HN Inc in 2021. Although he tried to expand into IT and construction, he soon faced financial difficulties and applied for court protection.