The stock price of S&D, a KOSDAQ-listed company that provides the sauce for Fire Chicken Noodles, is weak at the beginning of trading on the 14th. It is interpreted that investor sentiment has worsened due to news that Samyang Foods, the manufacturer of Fire Chicken Noodles, is pushing to acquire a sauce specialty company.
As of 9:01 a.m. that day, S&D is trading at 113,500 won, down 18,200 won (13.82%) from the previous trading day.
According to investment banking (IB) industry sources on the 11th, Samyang Foods is said to have agreed to acquire 100% of the equity in the sauce company G&F for about 60 billion won. The size of the transaction is about 60 billion won.
It has been 10 years since Samyang Foods has embarked on M&A since acquiring the frozen food company New Morning (now Samyang Square Meal) in 2015.
G&F supplies soup for ramen to companies such as Nongshim and OTOKI and also provides the ingredients for Samyang Foods' Fire Chicken Noodles sauce. The company recorded sales of 41.7 billion won and an operating profit of 3.2 billion won last year.
Regarding the acquisition of G&F, Samyang Foods stated, "We are conducting various reviews at the group level."