Genesystem Acquires 100% Stake in Kyongbo Electric for KRW 10.5 Billion... "Plans to Pursue Small-Scale Merger Later"

Genesystem, a bio-venture company that develops and manufactures 'Point-of-Care Molecular Diagnostics' solutions, announced on the 30th that, to diversify its business and secure future growth engines, it has decided to acquire 15,000 shares (100% stake) of Kyongbo Electric for KRW 10.5 billion. Kyongbo Electric is a manufacturer of measuring instruments and protective relays for switchboards.

The acquisition amount of KRW 10.5 billion is equivalent to 72.94% of Genesystem's total assets and 74.70% of its equity, based on the consolidated financial statements of the most recent business year. The acquisition proceeds will be paid entirely in cash using retained funds, and the scheduled transaction closing date is the 30th.

Genesystem will acquire the entire stake from Kyongbo Electric's existing largest shareholder, Kim Jae-joong, and four others to incorporate it as a 100% subsidiary, and then plans to proceed with a small-scale merger through future procedures. The company stated, "By absorbing the acquired entity, Kyongbo Electric, we will integrate our business capabilities and enhance management efficiency to secure mid-to-long-term growth engines."

Meanwhile, Genesystem's largest shareholder was changed to H Investment Association (16.81% stake) through a third-party allotment capital increase in March, and through this acquisition of Kyongbo Electric, it will fully expand its business areas from the existing diagnostic equipment and kit business to the switchboard and power measuring instrument sectors.