Shinseong Trading, a KOSPI-listed company renowned for its fashion brands such as Top Ten and GOGIA, is making a renewed attempt to delist its stock through a tender offer—its first effort in a year.
According to industry sources on the 8th, Canaan and Aeon Fashion plan to acquire 16.13% of Shinseong Trading’s outstanding shares at a price of 4,100 won per share. The offer is open until the 9th of next month.
Currently, Chairman Yeom Tae-soon and related affiliates, including Canaan and Recreation Fashion, collectively hold 87.83% of the company’s shares. If the current tender offer succeeds, they would secure the remaining shares needed to delist the company from the stock exchange.
This is not Shinseong Trading’s first attempt at delisting. The company made a similar effort last year. On June 21, Canaan and Aeon Fashion launched a tender offer for 22.02% of the company’s shares. However, only 5.9% of shareholders agreed to the offer, causing the delisting plan to fall through.
At the time, minority shareholder groups strongly opposed the tender offer, arguing that it did not represent fair value. Individual investors also resisted the move, especially since major shareholders had conducted open market purchases. The proposed buyback price of 2,300 won per share was viewed as inadequate, especially considering the market-estimated net asset value per share (BPS) ranged from 2,500 to 2,700 won.
Shinseong Trading, originally established as a clothing manufacturer in 1968, became part of the Daewoo Group in the mid-1980s. Following Daewoo’s collapse during the financial crisis, the company was sold to Canaan in 2002 and evolved into its current business model.
The company gained significant traction after launching the Top Ten brand, which surged in popularity during the 2019 boycott of Japanese goods, as it was seen as an alternative to Uniqlo. This led to improved financial performance and a spike in stock value during the early 2020s.
However, the end of the boycott wave resulted in declining stock prices. Shinseong Trading has since faced criticism from investors for what they see as insufficient efforts to deliver shareholder value.
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