Private Equity Fund (PEF) operator VIG Partners has completed a public takeover of the beauty medical device company VIOL. The company is expected to secure the remaining equity through an earmarked tax stock exchange and then voluntarily delist.
On the 9th, VIG Partners announced that it acquired 28,488,315 shares of common stock in VIOL through the public takeover. Including the shares agreed upon for acquisition from the existing largest shareholder DMS, the voting rights equity ratio is about 85%.
VIOL is a high-frequency beauty medical device company. Last month, VIG Partners acquired 34.76% of the shares from the largest shareholder DMS at 12,500 won per share and is pushing for voluntary delisting through an additional public takeover, which took place from the 18th of last month to the 7th of this month.
Since VIG Partners has secured approximately 85% of the voting rights equity through the public takeover, it plans to acquire the remaining equity through a comprehensive exchange of shares. According to Article 360-3, Paragraph 4 of the Commercial Act, a controlling shareholder can purchase minority shareholders' equity as long as they secure the equity that meets the requirements for special resolutions (67%). Under the Commercial Act, the amount of earmarked tax can be determined solely by the controlling shareholder. Once the amount is set and the minority shareholders' shares are acquired to secure 95% equity, an application for delisting can be submitted to the Korea Exchange.
Previously, companies such as Lutronic, Lock & Lock, Connectwave, JC Medical, and Koentec have completed voluntary delisting in this manner.
However, VIG Partners plans to secure the remaining equity through continuous market purchases at a price level similar to that of the public takeover before proceeding with the comprehensive exchange of shares.