Four days after being named preferred bidder for JoongAng Ilbo
Shareholders agree to sell 100% stake; deal estimated in the hundreds of billions of won
Dau-Kium Group has been named the preferred bidder to acquire Munhakdongne, one of South Korea's leading literary publishers, just days after being selected as the preferred bidder for JoongAng Ilbo.
According to the publishing industry, Munhakdongne founder and largest shareholder Kang Byung-sun — known by his pen name Kang Tae-hyung — met with employees Friday and announced that Dau-Kium Group had been chosen as the preferred bidder.
Kang told staff he selected Dau-Kium Group from among four companies that submitted letters of intent, saying he believed the conglomerate would respect Munhakdongne's literary tradition and its value as a publishing company. He placed particular weight on the group's intellectual property business capabilities.
Munhakdongne's shareholders have agreed to sell their combined 100% stake in the publisher. The transaction is expected to take several months to finalize.
According to Munhakdongne's audit report, Kang holds a 41.5% stake, other shareholders hold 51.8%, and treasury shares account for 6.7%. The shares outside Kang's holding are distributed among multiple shareholders, including editors involved at the company's founding. The sale price is estimated to be in the hundreds of billions of won.
Founded in 1993, Munhakdongne has built a prominent position in South Korea's literary publishing market by publishing works by leading Korean authors, including Nobel Prize in Literature laureate Han Kang.
The publisher has maintained annual sales of around 30 billion won ($22.6 million) in recent years. Last year, it posted sales of 36.9 billion won and operating profit of 7.1 billion won.
Dau-Kium Group's affiliates include Kidari Studio and Lezhin Entertainment, both of which operate webtoon and web novel platforms. If the Munhakdongne acquisition goes through, the group is expected to expand its content business by linking its existing digital platforms with Munhakdongne's literary IP.
Dau-Kium Group is also pursuing the acquisition of JoongAng Ilbo as part of a consortium with CJ Group and Shinsegae. Named the preferred bidder for JoongAng Ilbo on Monday, the group has now secured a leading position in the Munhakdongne bid as well, putting it on track to simultaneously acquire a major media outlet and a major publisher.
Meanwhile, Munhakdongne co-CEO Kim So-young announced her resignation at a morning meeting Monday, according to the publisher. Her term was set to run through next year, and the specific reasons for her departure have not been disclosed. Some in the publishing industry have speculated that the resignation may be connected to the planned stake sale. If Kim steps down, Munhakdongne is expected to operate under sole CEO Lee Hyun-ja for the time being.
boo@heraldcorp.com
