MBK Partners acquires majority of ConnectWave shares, moves closer to delisting

MBK Partners has successfully acquired 86 percent of the shares of ConnectWave, its Kosdaq-listed portfolio company, according to the private equity firm Sunday.

By securing over 80 percent of shares through the first tender offer, the likelihood of successfully delisting the company through a second tender offer has increased significantly.

According to MBK Partners, the firm acquired 86 percent of ConnectWave's shares following the completion of its first tender offer.

From April 29 to last Friday, MBK Partners conducted the tender offer to acquire the company's stocks at 18,000 won ($13) per share. The strategy is to achieve the flexibility and speed essential for company management, thereby bolstering corporate value.

Established in 2002, ConnectWave is the operator of the popular e-commerce platform Danawa. MBK Partners invested 600 billion won in 2022 to acquire Danawa and Korea Center, merging the two companies to create ConnectWave.

Despite opposition from some individual shareholders, MBK Partners' plan got off to a smooth start as Kim Ki-rock, the founder of ConnectWave and the second-largest shareholder, agreed to the proposals.

MBK Partners reportedly plans to initiate a second tender offer at the same price as the first as early as next week to protect the rights of minority shareholders.

Earlier, the private equity firm announced that it will promptly take steps to delist the company in accordance with relevant laws if a sufficient level of shareholding is acquired, regardless of the outcome of the second tender offer.