DS Networks, a real estate developer, acquires Taurus Investment & Securities. DS Networks which acquired the entire stake of Chairman Son Bok-jo of Tauraus Investment & Securities plans to acquire the stake of existing shareholders and apply for a major shareholder qualification to financial authorities.
According to the investment bank(IB) industry on August 31, DS & Partners, a subsidiary of DS Networks Group signed a stock purchase agreement (SPA) with Taurus Investment & Securities.
DS Networks will acquire a 13.56% of stake including the share of Chairman Son, the largest shareholder of DS Networks (11.32%) and share of persons with special relationship (2.24) for about KRW 5 billion. It will acquire 10.036 million shares at KRW 500 per share.
Jeonbuk Bank, Public Officials Benefit Association and Daegu Bank holds the the stake of 7.89% of Taurus Investment & Securities respectively. The major shareholders are the acquaintances of Chairman Son including Cheon Sin-il (5.26%), Yoon Gang-hoon (3.95%) and Yoon Dae-sik (3.95%).
DS Networks plans to acquire all of their shares as early as possible and apply for the qualification for a large shareholder to Financial Services Commission.
Previously Taurus Investment & Securities signed SPA with Jinwon E&C, a real estate developer but the deal was canceled because the purchase agreement with existing shareholders and payment of the remaining amount were not made in May this year.
At that time, it is heard that Tauraus Investment & Securities intended to sell 90% of shares to Jinwon E&C. Based on this, DS Networks expects to secure more than 90% of stake in Taurus Investment & Securities.
DS Networks plans to concentrate on its unique business of securities and focus on global investment to be a securities holding company.
DS Networks Group, which is one of the largest real estate developers, started as ‘Daeseungtongsan’ in 1969 and has been in real estate development business for 50 years. DS Networks, which is led by Chairman Chung Jae-hwan, the second chairman took large construction and development projects at home and abroad such as new town in Haewundae, Busan, Songdo Landmark City and Seoul Makok district. It was listed as top 500 companies in Korea in Fortune Korea last year. As of end of last year, the asset is KRW 1.5341 trillion and sales amounted to KRW 963.3 billion.
In July last year, DS Networks Asset Management was established to enter the business of real estate and alternative investment. DS Networks Asset Management became the regular member of the Korea Financial Investment Association in August last year.
An official from DS Networks said, “I think that if DS Networks which boasts business experience in development industry for a long time is combined with finance, it will have synergy effect in an era where the construction and finance are becoming more connected.” He added that “we plan to establish a profit model by combining the 4th industrial revolution technologies such as big data, block chain and artificial intelligence with real estate in new business areas.”
In the meantime, Taurus Investment & Securities was established by chairman Son, who was former CEO of Daewoo Securities. However, it recorded loss for several years and continued to erode capital due to financial crisis and deteriorating industry conditions immediately after the establishment of the company. At the end of last year, the company recorded KRW 31.1 billion in capital, KRW 16 billion in sales and KRW 698 million in net loss.
News 1 / Reporter Jeon Min