이 기사는 2021년 06월 15일 08시14분 thebell에 표출된 기사입니다

KCC Glass will acquire an entire stake in Kumkang Leisure owned by KCC Chairman Chung Mong-jin, which is seen as a settlement of shareholdings between brothers.

KCC Glass’ board of directors approved its acquisition of a 28.25% stake in Kumkang Leisure from Mong-jin for 62.8 billion won ($56 million) earlier this month, according to the regulatory filing Friday. KCC Glass will take over the stake on June 23.

The deal is seen as a settlement of shareholdings between Mong-jin and KCC Glass Chairman Chung Mong-ik instead of the business diversification. Founded in 1989, Kumkang Leisure operates a 27-hole private golf course located in Yeoju, Gyeonggi Province.

Mong-ik has served as the CEO of Kumkang Leisure since 2001. He is also the largest shareholder of the company with a 36.35% stake. Mong-ik has taken the lead in the golf course business rather than Mong-jin both in terms of ownership and management.

The latest deal has strengthened Mong-ik’s control in Kumkang Leisure. He is the largest shareholder of KCC Glass with a 20.66% stake as of the end of March. Mong-Ik has now secured more than half of Kumkang Leisure through KCC Glass.

Kumkang Leisure held cash and cash equivalents of 22.3 billion won at the end of last year. It generated 12.1 billion won in revenue and 3 billion won in operating profit, with an operating margin of 24.4% in 2020.

Mong-jin is likely to secure more than 60 billion won in cash after offloading its stake in Kumkang Leisure. He is expected to use the proceeds from the sale to pay inheritance tax. He received more than 350,000 shares of KCC from the late KCC Honorary Chairman Chung Sang-young, which are valued at more than 100 billion won. (Reporting by Ki-soo Park)