Chorokbaem to sell 39.3% stake to avoid delisting
Chorokbaem Media, a Kosdaq-listed drama studio known for a string of popular TV series, is accelerating efforts to sell off its majority stake and management rights after it was suspended from trading in mid-2023.
According to investment banking sources, Thursday, Samil PwC, the underwriter for Chorokbaem Media’s stock sales, circulated a teaser letter to potential buyers.
A teaser letter is a short document highlighting the sales process and investment opportunities concerning a company that is up for sale.
The measure comes after Won Young-sik, former chairman of Chorokbaem Media, was arrested on charges of stock manipulation in mid-2023.
In a bid to avoid being delisted from the market, Chorokbaem Media announced that it would run independently of Won’s influence following his arrest.
A 39.3 percent stake in Chorokbaem Media will be put up for sale. The stake is currently held by the firm’s controlling shareholder, CT Property.
Also a Kosdaq-listed company, CT Property has been a part of Chorokbaem Media’s governance structure in which Won and his family remain at the top.
“In that regard, the sales of CT Property-held shares in Chorokbaem Media suggests the company will be entirely free from Won’s influence,” a source said.
The company saw surging sales in recent years, from 149.1 billion won in 2021 to 192.5 billion won in 2022 and 242.1 billion won in 2023.
Established in 1998, Chorokbaem Media is a top-tier producer, with its entertainment and channel subsidiaries completing the value chain as a content creator. It produced a series of hit dramas after it was founded in 1998. Among them are “All In” (2003), “The Slave Hunters” (2010), “My Mister” (2018) and “Penthouse” (2020-2021).