StoneBridge and LS Securities Say "Some Shareholders’ Tender Offer Demands Are Inappropriate for Growth Strategy"
LS Securities and StoneBridge Capital, the largest shareholders of the KOSDAQ-listed company Refine, have raised concerns that some shareholders, such as Cha Partners Asset Management, demanding a share buyback does not align with the company’s mid- to long-term growth strategy.
According to the investment banking (IB) industry on September 11, RealtyFine, established by LS Securities and StoneBridge Capital, recently responded to demands from some shareholders for a public share buyback using corporate funds by stating, “Given the current business conditions and financial structure, using capital intended for the company's growth to repurchase treasury shares is inconsistent with our fundamental competitiveness recovery, as well as with our mid- to long-term strategies such as expanding business-to-consumer (B2C) transactions between the company and customers. Therefore, it is inappropriate.”
RealtyFine added, “We are currently pushing ahead with new businesses such as mergers and acquisitions (M&A), including the signing of memoranda of understanding (MOUs) to review B2C proptech M&As worth between 70 billion and 80 billion won. Thus, it is our position that liquid assets should be used to pursue these new business initiatives.”
RealtyFine holds a 47.96% stake in Refine, a leading domestic real estate due diligence company, making it the largest shareholder. RealtyFine is conducting a public tender offer for Refine from August 18 through September 16. In addition to its current management stake, the company plans to acquire an additional 5,199,000 shares—accounting for 30% of the total number of issued shares—thereby increasing its management stake to as much as approximately 78%. The tender offer is not intended to delist the company.
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In response to RealtyFine’s tender offer activity, on September 4, Refine shareholders including Cha Partners sent a public shareholder letter to the Refine board of directors, stating, “This tender offer poses a serious conflict of interest and carries a significant risk that directors may breach their fiduciary duty to shareholders,” and demanded that the board purchase treasury shares.
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