Sangbo Corp. (KOSDAQ:A027580) agreed to acquire remaining 30.8% stake in Sangbo New Material (Suzhou) Limited from Lindeman Global Cooperation Growth Private Equity Fund 9 managed by Lindeman Asia Investment Co., Ltd. (KOSDAQ:A277070) for KRW 18.7 billion on August 22, 2018. The deal value is payable in cash. Under the terms of the agreement, KRW 3.8 billion will be paid on August 23, 2018, KRW 5.1 billion will be paid on October 23, 2018 along with the transfer of 15.4% stake in Sangbo New Material (Suzhou) Limited and the remaining KRW 9.7 billion will be paid on October 23, 2019 along with the transfer of 15.4% stake in Sangbo New Material (Suzhou) Limited. Sangbo Corp has made payment of KRW 3.8 billion on August 23, 2018, KRW 5.1 billion on October 23, 2018, KRW 323.5 million on April 15, 2019, KRW 2 billion on August 23, 2019, KRW 2 billion on September 23, 2019, KRW 2 billion on October 23, 2019 and 223.3 million on November 18, 2019. Final payment of KRW 3.3 million is expected to be made on June 30, 2020. Post transaction, Sangbo Corp. will hold 100% stake in Sangbo New Material (Suzhou) Limited. The transaction will be funded through own funds of Sangbo Corp. As on June 30, 2020, the deal terms were revised. The deal value has been revised to KRW 18.9 billion. The new final payment of KRW 3.3 million is expected to be made on September 30, 2020.

Sangbo New Material (Suzhou) Limited reported total assets of KRW 49.2 billion and net assets of KRW 29.4 billion as of December 31, 2017 and revenues of KRW 76.7 billion and net profit of KRW 1.2 billion for the year ended December 31, 2017. The transaction is resolved by the Board of Sangbo Corp. on August 22, 2018. The transaction is expected to complete on October 23, 2019. The date of purchase is the final payment date. The purchase of 15.4% is completed on October 23, 2018. The remaining 15.4% is expected to be purchased on June 30, 2020. As per the disclosure of June 30, 2020, remaining 15.4% is expected to be purchased on September 30, 2020.