Iris Fund 1 and K Bio Fund 1 signed a contract to acquire 40% stake in KODI-M Co., Ltd. (KOSDAQ:A224060) from KODI-S Co., Ltd. (KOSDAQ:A080530) for KRW 22.5 billion on August 20, 2016. Iris Fund 1 will acquire 1.48 million shares representing 39.11% and K Bio Fund 1 will acquire the remaining 0.03 million shares representing 0.88% of KODI-M at KRW 14,827.49 per share. Post-completion, KODI-S Co., Ltd will hold 1.2% stake in KODI-M Co.

KRW 2.25 billion will be deposited in an escrow account of a third party agreed upon by KODI-S and the contract signing date as deposit and balance of KRW 20.25 billion will be deposited into the escrow account of a third party within the second business days before the general or extraordinary meeting of shareholders, which will initially be held for the appointment of the officers by the buyers after the signing of the actual contract. Upon closing of the general meeting of shareholders, under the pre-requisite condition that the directors assigned by the buyers are selected as the directors, KRW 22.5 billion will be withdrawn from the escrow account. Post-completion, KODI-S Co., Ltd will hold 1.2% stake in KODI-M Co.

The transaction is expected to complete on October 24, 2016. As of September 28, 2016, the expected closing date was changed to September 28, 2016.