South Korea’s automatic teller machine (ATM) manufacturer Chungho Comnet Co. acquired Wellmade Yedang Co., a Korean entertainment company that produces movies, dramas and music, as well as manages actors, actresses and singers as part of efforts to diversify its business portfolio.
Chungho Comnet said in a regulatory filing on Tuesday that it signed a deal to purchase an 8.9 percent stake, or 1,515,774 shares owned by Wellmade Yedang’s chairman and the largest shareholder, Byeon Jong-eun, for 17 billion won ($14.6 million). When the acquisition transaction is completed at shareholders’ meeting slated for May 12, the ATM producer will become the largest shareholder of the entertainment firm.
The entertainment company is home to the nation’s high-profile actors and actresses, such as Yoo Dong-kun, Jeon In-hwa, Park Sang-myun and Oh Yeon-seo and girl group like Girl’s Day. It is also expanding its business realm in TV drama production. Last year, it swung to the black with an operating profit of 396 million won and will likely earn annual sales of 30 billion won this year by producing total four pieces of movies and dramas.
An official at Chungho Comnet said the deal is significant because it could help the company diversify its business portfolio through a new growth momentum. He added that the recent acquisition will pave the way for the company to enter the Chinese market, riding on the Korean wave.
By Kim Tae-joon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]