Kim Tae-wook, co-CEO of iFamilySC (left), and actor Chae Si-ra. [Yonhap]
Kim Tae-wook, co-CEO of iFamilySC (left), and actor Chae Si-ra. [Yonhap]

Shares of iFamilySC, the cosmetics company behind the color makeup brand Rom&nd, surged to the daily upper price limit Friday after news broke that Marubeni, a major Japanese conglomerate, plans to acquire a stake worth up to 56 billion won ($42.3 million). The company is co-led by Kim Tae-wook, a former singer turned businessman and husband of actor Chae Si-ra.

According to Korea Exchange, iFamilySC shares were trading at 10,940 won on Friday, up 2,520 won, or 29.93 percent, from the previous session.

Investor sentiment was lifted by news that Marubeni, one of Japan's five largest general trading companies, plans to acquire a stake in iFamilySC through a tender offer.

iFamilySC disclosed Friday that Welliant, a wholly owned subsidiary of Marubeni, intends to acquire up to 28 percent of the company's shares through the tender offer. The offer price is set at 12,000 won per share — 42.5 percent above Thursday's closing price of 8,420 won. The total funds committed to the tender offer amount to approximately 56 billion won.

The tender offer runs for 20 days from Friday through Nov. 11, with settlement set for Nov. 13. The target range is a minimum of 3,336,277 shares, or 20 percent, up to a maximum of 28 percent.

If subscriptions fall short of the minimum, the tender offer will not proceed. If they exceed the maximum, shares will be purchased on a pro-rata basis. NH Investment & Securities is serving as the managing underwriter.

Should the tender offer succeed, Marubeni would become a major shareholder of iFamilySC. Co-CEO Kim Tae-wook, however, would retain his position as the largest shareholder.

According to the tender offer prospectus, Co-CEO Kim Tae-wook, who holds a 28.4 percent stake, and Co-CEO Kim Sung-hyun, who holds 14 percent, have agreed not to tender their shares. If the offer is completed at the maximum amount, the combined stake held by Marubeni and the two co-CEOs would reach 70.39 percent. Even at the minimum, their combined holding would stand at 62.39 percent.

Marubeni said the tender offer is not intended to delist the company or make it a wholly owned subsidiary, but rather to expand strategic cooperation between the two companies.

After the tender offer closes, Marubeni has agreed to recognize the management authority of the two co-CEOs as long as they remain the largest shareholders. Both are to retain their executive positions for at least three years and will hold the right to nominate the chief executive.

iFamilySC and Marubeni also plan to enter a strategic business partnership and establish an investment committee, a business development unit and a management planning division. Marubeni intends to support iFamilySC's overseas expansion and help identify global investment opportunities.

iFamilySC is a cosmetics company that listed on Kosdaq in 2021. It has expanded into overseas markets on the strength of Rom&nd, its color cosmetics brand known for tints and other products, and has built strong name recognition in Japan in particular.

In the first half of this year, the company posted revenue of 113.5 billion won and operating profit of 10.5 billion won. Revenue rose 1.3 percent from a year earlier, while operating profit fell 26.6 percent.

Kim Tae-wook made his debut as a singer in 1991 with the song "Gaekkkum" and was a member of the group Nark in 1999. He later set aside his music career and served as chief executive of iWedding Networks, a wedding services company, from 2001.


yeonjoo7@heraldcorp.com