Sampyo Cement Copration and KDB Sigma 2 Corporate Financial Stability Private Equity Fund entered into a contract to acquire 54.96% stake in TONGYANG Cement & Energy Corporation (KOSDAQ:A038500) from Tongyang Inc. (KOSE:A001520) for approximately KRW 790 billion on August 28, 2015. As reported, Sampyo Cement Copration and KDB Sigma 2 Corporate Financial Stability Private Equity Fund will acquire 59 million shares of TONGYANG Cement & Energy Corporation at a price per share of KRW 13,461. As part of the consideration, deposit of KRW 79.43 million is already paid and the balance of KRW 714.86 million will be paid on September 25, 2015. Of the total fund for the acquisition, Sampyo financed KRW 440 billion from a capital increase to its large shareholders and collateralized loans while the remaining balance of KRW 350 billion from an acceptance financing deal from banks (KRW 200 billion) and KDB Private Equity (KRW 150 billion).

The transaction was resolved by the Board of Directors of Tongyang Inc. on August 28, 2015. The transaction is expected to complete on September 25, 2015. The sale proceeds will be used for repayment of debt recovery and other purposes. KPMG acted as financial advisor for Tongyang Inc. Kim & Chang acted as legal advisor in the transaction.

Sampyo Cement Copration and KDB Sigma 2 Corporate Financial Stability Private Equity Fund completed the acquisition of 54.96% stake in TONGYANG Cement & Energy Corporation (KOSDAQ:A038500) from Tongyang Inc. (KOSE:A001520) on September 25, 2015.