StoneBridge Capital, together with LS Securities, is launching a tender offer for 5.199 million shares of Repine, a domestic real estate title research firm, representing a 30% stake, the firm said on the 18th.
Through the tender offer, StoneBridge Capital and LS Securities aim to raise their combined holdings in Repine to about 78%, securing stable management control. The offer runs from the same day through the 16th of next month, with Realtypine — a vehicle set up by StoneBridge Capital and LS Securities — serving as the acquiring entity. Realtypine currently holds about a 48% controlling stake in Repine. Even if the shares tendered exceed the maximum planned purchase amount, Realtypine will buy only up to 5.199 million shares on a pro rata basis. The deal is managed by NH Investment & Securities (005940.KS).
The tender offer price was set at 17,600 won. That is about 30% higher than the closing price of 13,580 won on the 14th of this month, the last trading day before the offer. As of 9:25 a.m., the stock was trading at 15,830 won, up 16.57% from the previous day. Compared with the volume-weighted average price (VWAP) over the previous one and three months, the price reflects premiums of about 50% and 64%, respectively. According to the company, the offer price is the highest for Repine's stock this year.
The tender offer was prompted by structural changes surrounding the jeonse and rental markets and by regulations on jeonse loans, which the company said are weighing on Repine's earnings outlook and putting downward pressure on its stock. By securing a stable stake, the group intends to pursue a consistent management strategy and focus on strengthening the business's competitiveness. In its tender offer filing, Realtypine said it "will offer shareholders seeking a short-term exit an opportunity to realize returns, while over the long term focusing on sound management based on a stable controlling stake."
The deal is not aimed at delisting the company, according to the firm. Realtypine said, "By offering a premium of about 30% over the recent market price, we believe this will be an attractive proposition for minority shareholders seeking a short-term exit," adding, "The main purpose is to give minority shareholders the option of exiting their investment, and we are not currently considering a delisting through this tender offer."
