Aroot Recovers 24.7 Billion Won from Woojin Electric Investment, Secures Cash Equivalent to 88% of Market Cap

Aroot Co., Ltd. (096690) has completed the recovery of follow-up investment funds related to the resale of Woojin Electric and secured 24.7 billion won in cash. Having realized an additional profit of 9.2 billion won beyond the investment principal, the company plans to use these funds to improve its financial structure and to invest in new businesses, including stablecoins.

On September 4, Aroot announced that it had completed the deposit of proceeds totaling 24.7 billion won from the sale of shares related to the follow-up investment in Woojin Electric. This recovery amount is equivalent to 88% of Aroot's market capitalization based on the closing price on the previous day.

The sale of Woojin Electric shares picked up pace last month when Curious Partners signed a share purchase agreement to transfer 100% of Woojin Electric's shares to Koston Asia. The deal is valued at approximately 300 billion won. With the sale of 100% of Woojin Electric shares completed, Aroot has also finalized its recovery procedures for the follow-up investment and secured significant liquidity.

Previously, in 2024, Aroot sold its entire 100% stake in Woojin Electric, which it held through its affiliate Woojin Holdings, to Curious Partners. Thereafter, recognizing the growth potential of Woojin Electric, Aroot made an additional investment of 15.5 billion won in Curious Voltage No. 3 Private Equity Fund.

Through this investment recovery, Aroot secured an additional profit of 9.2 billion won exceeding the initial principal of 15.5 billion won, bringing the total recovery amount, including the original investment, to 24.7 billion won. The company emphasized that it was significant to realize further investment profit after conducting a follow-up investment during the Woojin Electric sale process.

Aroot plans to use the newly secured funds primarily to improve its financial structure, while also investing in new businesses such as semiconductor equipment, digital finance, and recycling.

In the semiconductor equipment business, Aroot has already entered the relevant market and established a business base. In 2024, Aroot acquired NSRC, a company specializing in semiconductor refurbished lithography equipment. NSRC has recently been signing supply contracts for lithography equipment with overseas semiconductor companies, including those in China and Taiwan, accumulating overseas order records.

In the digital finance sector, Aroot is expanding beyond its existing main business of point-of-sale (POS) printer systems. Based on its overseas subsidiaries, the company became the first domestic business to obtain formal approval for a stablecoin-related business from a foreign regulatory authority in June, marking the full-scale entry into this area.

The recycling business is also underway, mainly through subsidiaries. After completing its factory last year, Aroot Eco has been producing recycling fuel and supplying it to power plants.

A company representative stated, "We regarded Woojin Electric's growth potential highly and proceeded with a follow-up investment at the time of the sale, successfully generating a substantial additional investment return. We will use the recovered funds to improve our financial structure and accelerate new business initiatives, including stablecoins, as well as semiconductor equipment and recycling businesses conducted through subsidiaries."

With this investment recovery, Aroot intends to utilize the 24.7 billion won secured from the Woojin Electric follow-up investment to enhance financial stability and foster growth in new business areas such as semiconductor equipment, stablecoins, and recycling simultaneously.

This content was produced with the assistance of AI translation services.