이 누리집은 대한민국 공식 전자정부 누리집입니다.

한상넷

비즈니스 정보

Biz News Korea(Eng)

Eugene Group becomes largest construction materials supplier after upping stake in rivaling Tongyang

Collected: 2016.05.31

Distributed: 2016.06.01

Source: Go Direct

South Korea’s ready-mixed concrete supplier Eugene Group acquired a 10.03 percent stake in rivaling Tongyang Inc. held by local private equity firm Pine Tree Investment and Management Co. for 97.2 billion won ($81 million) to become the single largest shareholder in Tongyang with a combined 23.05 percent stake, the company announced on Monday.

When Eugene Group and Pine Tree Investment and Management agreed to jointly exercise voting rights in Tongyang in March this year, they included an option to allow each other to buy their share holdings at a specified price and period. Since Pine Tree repeatedly mentioned that it has no interest in taking over Tongyang, market consensus has been that Eugene was highly likely to buy the stake owned by Pine Tree.

At Tongyang’s regular shareholders’ meeting in March, small shareholders also demanded Eugene Group to buy the stake held by Pine Tree and get more involved in management decision-making at Tongyang.

Tongyang runs construction, construction materials and plant businesses. With Tongyang under its arm, Eugene will become the largest supplier of construction materials by extending its sales network beyond the capital to southern Gyeongsang Province and and Gangwon Province.

Eugene Group plans to enhance cooperation with Tongyang to maximize synergy effect and venture into new businesses for further growth.

By Chun Kyung-woon

Read in Korean

List

Previous: KOSPI expects the biggest bumper year in IPO as 25 readying entries

Next: Daedong signs long-term diesel engine supply contract worth $119 mn with Doosan Infracore