CS (065770), a KOSDAQ-listed company, has secured all of the funds needed to acquire Mirae Information Technology. CS manufactures mobile telecommunications repeaters that amplify base station signals and transmit them inside buildings, underground, and in tunnels. The merger and acquisition (M&A) deal, which the company has pursued for years to diversify its business, has entered its closing phase.
According to the investment banking (IB) industry Friday, CS recently signed a loan agreement worth 11 billion won, guaranteed by the Korea Technology Finance Corporation and executed by Woori Bank. The funds will be used entirely to acquire a stake in Mirae Information Technology.
In May this year, CS announced it would acquire a 100% stake in Mirae Information Technology for 25 billion won. Under the structure, CS will acquire the full stake for 20 billion won, with the remaining 5 billion won to be paid additionally based on operating profit recorded over three years starting in 2027. To pay the initial 20 billion won, CS proposed using 9 billion won of its own cash reserves plus 11 billion won in acquisition financing. Although some in the industry had doubts about the feasibility of raising the acquisition funds, this agreement has resolved the related uncertainty.
CS has focused on manufacturing and selling mobile telecommunications repeaters as its core business, but its earnings have declined amid a contraction in the domestic telecommunications sector. In response, the company has strengthened its overseas business centered on Japan and Europe while actively pursuing M&A to secure future growth engines. Mirae Information Technology, the company CS is seeking to acquire, develops, manufactures, and distributes video surveillance devices. It recorded revenue of 34.1 billion won and operating profit of 2.3 billion won last year.
"This acquisition financing is structured to allow long-term borrowing at a low interest rate," a CS official said. "We have secured all of the acquisition funds and plan to close the acquisition on schedule."
