Digital Optics Co., Ltd. (KOSDAQ:A106520) and Hanil Vacuum Co., Ltd. (KOSDAQ:A123840) agreed to acquire 24.5% stake in KCX Co., Ltd. for KRW 2.5 billion on November 23, 2017. Under the terms of transaction, Digital Optics Co., Ltd. will acquire 0.11 million shares for KRW 550 million and Hanil Vacuum Co., Ltd. will acquire 0.38 million shares for KRW 1.9 billion. The transaction for 5.5% stake acquire by Digital Optics Co., Ltd will be funded by KRW 550 million raised from issuance of convertible bonds and 19% stake by Hanil Vacuum Co., Ltd. will be funded by cash payment and KRW 1 billion raised from issuance of domestic private bond with stock warrants. Hanil Vacuum Co., Ltd. will now fund the transaction by issuance domestic private convertible bonds issuance of KRW 1 billion.

As on December 31, 2016, KCX Co., Ltd reported total assets of KRW 906.8 million, total capital of KRW 825.3 million, sales of KRW 1 billion and net loss of KRW 166.4 million. The transaction has been resolved by Board of Digital Optics Co., Ltd. and Hanil Vacuum Co., Ltd. The transaction is expected to be completed by November 23, 2017.

Digital Optics Co., Ltd. (KOSDAQ:A106520) and Hanil Vacuum Co., Ltd. (KOSDAQ:A123840) cancelled the acquisition of 24.5% stake in KCX Co., Ltd. on November 23, 2018.