SM HiPlus CEO Woo Ki-won, the only son of SM Group Chairman Woo Oh-hyun, is set to take over the recent delisted company CNH through his wholly owned company, Najin Co., Ltd.
CNH, undergoing corporate rehabilitation procedures, conducted a public competitive bidding process after designating Najin Co., Ltd. as a preferred buyer on a conditional basis. As no entities submitted an intention to bid, Najin Co., Ltd. is expected to be confirmed as the acquirer.
According to the sale advisory firm Samil Accounting Corporation on the 15th, no bids were received by the 3 p.m. deadline for submitting bids to acquire CNH. There were no places that submitted letters of intent, the preliminary stage for bid submission, until the 4th. As a result, Najin Co., Ltd., the preferred buyer, has become the likely acquirer of CNH.
Earlier, Najin Co., Ltd. was selected as the planned acquirer of CNH prior to the public competitive bidding by the Seoul Bankruptcy Court on the 17th of last month. According to the stalking-horse bidding method, if no one offers a higher price or better conditions than Najin Co., Ltd. in the main bidding, Najin Co., Ltd. will be confirmed as the final acquirer. The acquisition price of CNH by Najin Co., Ltd. is expected to be disclosed once the acquisition is confirmed. Najin Co., Ltd. has stated that it plans to participate in CNH’s capital increase and acquire new shares in cash.
CNH operates through subsidiaries like Premier Motors and CNH Premier Rental, engaging in the sale of imported vehicles and rental car businesses. Premier Motors imports and sells U.S. Ford and Lincoln vehicles. CNH recorded a net loss for three consecutive years starting from 2022. Last year, it incurred a net loss of 112 billion won, leading to capital erosion.
CNH attempted to sell twice last year but failed. Shortly after the decision to delist in April of this year, it filed for a provisional injunction to suspend the effect of the delisting decision with the court, but the court dismissed the injunction application on the 1st of this month, and CNH was delisted on the 14th after a liquidation sale.
Najin Co., Ltd., which is acquiring CNH, is an unlisted company wholly owned by Woo, with one-person management by the representative. Since its establishment in 2021, Najin Co., Ltd. has acquired land and buildings several times through auctions, but this is its first foray into corporate acquisition.
The representative, Woo, is expanding her activities through corporate mergers and acquisitions. The unlisted Samara Midast, which is 100% owned by her and Woo, successfully grew from an acquisition of Jico, which was undergoing corporate rehabilitation in 2021, into the current SM Bexel. An advisory firm official noted, “It seems that SM Group is interested in the automobile import and rental aspect of CNH’s business.”
SM Group stated, “Acquiring companies undergoing rehabilitation and reviving them is one of (the group’s) business methods. There are no future business plans set as CNH’s acquisition has not been confirmed.”